This section is intended to answer some of your most frequently asked questions about filing bankruptcy. For more information, contact our office to schedule your free bankruptcy consultation.
No. However, bankruptcy is not just a matter of filling out forms. Bankruptcy affects important legal rights including your right to a fresh start in bankruptcy while being able to keep assets that are exempt from creditor attachment. An attorney will be able to ensure that your bankruptcy is filed properly.
You may tell your creditors you are filing bankruptcy and refer them to Moellring & Ambler.
Chapter 7 is a type of bankruptcy wherein your dischargeable debts are wiped out and the debtor gets a fresh start. Chapter 13 is a type of bankruptcy in which the debtor repays a percentage of his debts over a period of 3 to 5 years.
Debtors are only allowed to file chapter 7 every eight (8) years. A chapter 13 in which a debtor is eligible for a discharge can be filed four (4) years after a previous chapter 7. Other options may be available in a chapter 13.
In most cases, yes. It depends on the amount of equity in your assets. Equity is the difference between what you owe against your assets and the value of those assets. If you have too much equity in your assets, a chapter 13 may be a good option.
It depends on the timing of the inheritance. If you inherit money before you file bankruptcy, you need to let your attorney know that so you can discuss your options. If the inheritance is triggered because of a death that occurs within 180 days (approximately 6 months) after you file bankruptcy, the inheritance is considered an asset in your bankruptcy and will most likely have to be turned over to the bankruptcy trustee. If the inheritance is triggered because of a death that occurs more than 180 days (6 months) after the filing of the bankruptcy, it is yours to keep.
Usually not. The bankruptcy code provides that any debt for an educational benefit is not dischargeable in bankruptcy. However, there is an exception for “undue hardship.” The undue hardship standard is very difficult to overcome. You would have to have no hope for financial security in the future.
Yes, bankruptcy will stop wage garnishments from judgment creditors and wage assignments. If you have been sued for credit card debts, medical bills, repossessions and other debts, creditors may garnish your wages or bank accounts. Bankruptcy stops all that and allows you to get a fresh start.
Exemptions are laws that let you keep certain assets. In both Missouri and Illinois, exemptions are based on state law even though bankruptcy is federal law. Your attorney will ask you questions about your assets to determine if they are exempt under the appropriate law.
Not specifically. However, many people find relief from medical bills through the bankruptcy process. It is hard enough to deal with the underlying medical issues let alone the financial burden of medical bills. Too many times, the doctors and hospitals will not take a payment you can afford and will sue if a payment is not made to the medical provider’s satisfaction. Bankruptcy will wipe out those medical bills and give you a fresh start.
Debtors who file bankruptcy must appear at a creditors’ meeting. A creditors’ meeting is conducted by a bankruptcy trustee, a court appointed attorney. The trustee looks out for the unsecured creditors and verifies that the debtor has presented true and accurate information. Of course, your attorney will be at your creditors’ meeting with you.