| GENERAL QUESTIONS |
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Is Bankruptcy bad? |
| The number of bankruptcy cases are going higher day by day and the stigma attached with bankruptcy: “going bankrupt” is no longer a taboo on individuals who are soughting relief from debts and claims of creditors. |
| If people and companies are filing bankruptcy, then why not me? |
| Bankruptcy cannot be filed just for the heck of it. Generally and more importantly there are many other intelligent options available other than going bankrupt. Years experience shows that going bankrupt not only falls hard on your pocket but also may prove difficult in securing credit for future situations. |
| How many different types of bankruptcies are present? |
| Bankruptcies can be further divided into different chapters that in turn contain different sets of laws. This is done under the Federal Bankruptcy Act. |
| What is Chapter 7? |
| Refer to chapter 7 word document. |
| What is Chapter 13? |
| Refer to chapter 13 word document. |
| Can all my debts be discharged after filing for Bankruptcy? |
| That is the precise reason why a bankruptcy attorney is advised to be consulted. Since Bankruptcy does not makes sense to us all the time and we may not know what might be the outcome after filing, consulting an attorney takes away all our queries associated with bankruptcy. |
| What is Chapter 12? |
| This allows farmers with real estate debts and bankruptcies to clear off their debts from the profits that are incurred on the future crops. |
| What is chapter 13? |
| This chapter is often referred to as the wage earner’s law. This works like a periodic payment plan towards the creditor, as the debtor pays off a substantial portion of debt through his wages. Generally under liquidation chapter i.e. chapter 7, creditors receive more than they receive under chapter 13.But under chapter 13 the advantage lies with the debtor as he can retain his property . But if he fails to comply with the chapter 13 legalities, the court can treat this as chapter 7 liquidation. |
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What debts cannot be discharged by filing bankruptcy? |
| Tax claims, Fines and penalities, Spousal and child support claims, Student loans and secured debts, Debts not listed with courts , drunken driving obligations, false claims and fraud claims with an intent to deceive. |
| If a fraud files bankruptcy, then will his debts be discharged? |
| As the court has prohibited people who have incurred debts by fraud to file bankruptcy, his debts will not be taken into account at all. |
| Can a debtor be asked to reaffirm his debt? |
| Yes, he will/can be able to do so as long as there is a guarantor for the debt to be discharged. A debtor can do so to avoid the creditor take any collateral associated with him. Also, a creditor can ask the debtor to do so before doing business again with the debtor. |
