FAQ

Determining whether to file bankruptcy is often a difficult decision. We suggest contacting our office via phone or email to discuss your financial situation so we can evaluate what your options could be and whether you are a candidate to file for bankruptcy relief.

The filing of a bankruptcy petition in most instances will result in an automatic stay being put in place which prevents creditors from calling you, sending demand letters, proceeding with court hearings and any other collection actions. Once you obtain a discharge in bankruptcy the creditor (in most cases) is enjoined from pursuing the claim even after the bankruptcy case is closed. 

Not all unsecured debts can be discharged in a bankruptcy. One of the biggest sources of debt for people in today’s economy, student loans, are also almost always non-dischargeable in bankruptcy. Only in very rare cases will the Bankruptcy Court discharge student loans. Other debts, such as certain taxes, child support or alimony are not dischargeable.

Your options depend on whether you want to try and keep the home. If you want to move out and walk away, then you can file Chapter 7 to surrender the house and discharge the debt. If you want to save your home then a Chapter 13 petition may be in your best interest provided you have the ability to make your current mortgage payments and cure the arrearage over the life of your Chapter 13 plan. A consultation with one of the firm’s attorneys is warranted if you have fallen behind on your mortgage and seek to avoid foreclosure.

If you are behind on your debts, then that is already damaging your credit. One of the goals of bankruptcy is to give the honest debtor a “fresh start.” While your credit score may go down in the short-term, it should rebound and allow you to move forward with your life. Filing of the bankruptcy is a financial decision which will impact your credit but it may also start on the path of financial stability. If you are having financial difficulty and need to talk to a bankruptcy professions then please give our office a call at (413) 732-6840.