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National Association of Consumer Bankruptcy AttorneysLaw Offices of Stan E. Riddle, Attorneys & Lawyers - Bankruptcy & Taxes, Oakland, CA
FAQ

Q: Why should I spend money and hire an attorney to file for bankruptcy?
A: Most self-filed bankruptcy cases fail and no debt is discharged.  Bankruptcy is a complex legal process with many requirements and deadlines the average person is unlikely to be aware of.  It will be worth the peace of mind knowing that a group of people who understand this process are working for you?

Q: If I file for bankruptcy, will the trustee repossess all my belongings?
A: Probably not. Within bankruptcy there are a number of “exemptions” that can be applied to protect the value of most, if not all of your assets. A Bankruptcy Attorney should be able to tell you if your assets might exceed the available exemptions.

Q: Will filing for bankruptcy prevent me from ever having a good credit rating?
A: Bankruptcy is not intended to end your financial standing and punish you for the rest of your days. You may not receive the best interest rates immediately following bankruptcy but there are lenders who will give you credit.  Most people get credit card offers in the mail soon after their case completes. 

Q: If I file for bankruptcy will my friends and family be notified that I have done so?
A: Not unless they are a Creditor to you or a Co-Debtor with you.  While bankruptcies are public record, notifications are only sent to interested parties within the bankruptcy.

Q: Can bankruptcy stop the foreclosure of my home?
A: Yes. With a Chapter 7, you likely will only be able to temporarily stop the foreclosure. Chapter 13 allows for a repayment of the arrears over 3-5 years.  After you complete the plan, you will be current on your mortgage and the foreclosure will end.

Q: Can bankruptcy discharge State or Federal tax debt?
A: Yes and No.  As a general rule, tax debt that is 3 years old can be discharged.   If the tax obligation is less than 3 years old, then you will likely need to pay it back.

Q: Can bankruptcy stop a wage garnishment?
Yes.

Q: Can bankruptcy stop a collection lawsuit?
Yes

Q: I’m struggling under a second mortgage, can bankruptcy help with that?
Yes.  If your home is upside down in value, we can discharge the 2nd mortgage debt and remove the lien from the property.  This can only happen with Chapter 13 and Chapter 11.

Q: A lien has been placed on my property, can bankruptcy help with this?
Yes.  We can strip off most liens including 2nd mortgage liens, HOA liens, Collection Liens etc.

Q: Is it possible that I make too much income to file for bankruptcy?
Yes and No.  There are minimum income requirements to qualify to file for Chapter 7.  If you do not meet these income requirements, you will need to file Chapter 13.

Q: Is there such a thing as having too little debt to file for bankruptcy?
A: This question really needs to be answered by you.  For most people, you should have more than $15,000.  Filing does come at some cost, financially and to your credit rating. These are important things to consider when considering bankruptcy relief.

Q: Should I burn through any savings and retirement I might have before considering bankruptcy?
A: NO! Retirement and pension accounts are protected in bankruptcy through their own set of exemptions. Unless you have tens of thousands of dollars in savings, the value of these accounts should be protectable too. Ask a reputable bankruptcy attorney for more information.

Q: What is the main difference between a Chapter 7 and a Chapter 13 bankruptcy?
A: Chapter 7 bankruptcy is commonly known as a “basic liquidation” or “straight” bankruptcy. In Chapter 7, a Bankruptcy Trustee will liquidate any unexempt assets to repay your creditors then discharge the remaining unsecured debts. Chapter 7 cannot stop a foreclosure (it can only pause it), help with the repayment of tax debts or allow for the repayment of arrears on a secured debt such as a car.  However, Chapter 7 can discharge all or most of your unsecured debts such as credit cards or medical expenses as well as stop collection lawsuits. For further information please see our full description of Chapter 7 Bankruptcy here.

Chapter 13 bankruptcy is sometimes referred to as Wage Earner Bankruptcy.  A Chapter 13 bankruptcy includes a 3 or 5 year plan to repay certain secured and non-dischargeable debts, such as arrears on a mortgage or back taxes.  Because of this, if you continue to meet the obligations of the repayment plan, a Chapter 13 bankruptcy CAN stop a foreclosure.  It can also relieve garnishments and remove liens.  Like Chapter 7, it may also discharge all or part of your unsecured debt.  For more information please see our full description of Chapter 13 Bankruptcy here.

Q: I have a car loan I’d like to continue, is this possible in bankruptcy?
A: Yes, if you can become current on any arrears, and stay current in your future payments there should be no problem completing this loan.

Q: I am pursuing a Loan Modification, would bankruptcy disqualify me from receiving one?
Loan Modifications are voluntary.  Only the bank and the owners of your loan can ultimately decide if you get the Loan Modification approved.  As a general rule, most banks will still consider your case after file for bankruptcy.

Q: I am on a fixed income, can I qualify for bankruptcy?
Most people on fixed incomes do qualify for bankruptcy. 

Q: A Trustee Sale date has been set for my home, can bankruptcy stop this sale?
Yes, but unless you can put together a realistic plan to restructure your repayments, then you will only be able to delay the sale. 

Q: Can bankruptcy discharge medical debts?
A: Yes, both a Chapter 7 and a Chapter 13 bankruptcy can discharge debts of this nature.

Q: I’m married but my spouse doesn’t want to file for bankruptcy, can I file individually?
A: Yes, as long as the debts you are looking to discharge or manage through bankruptcy are your own.  Your spouse will be asked to provide some basic information about their income as part of the household but they will remain unaffected by the bankruptcy

The Law Offices of
Stan E. Riddle

5179 Lone Tree Way
Antioch, CA 94531
Main: (925) 818-2795
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