Frequently Asked Questions
How much does it cost to file?
I charge $750 for basic Chapter 7 services and $2,500 for Chapter 13 services. If you "shop around", you will find that that this fee is extremely competitive with the fees charged by attorneys having comparable experience filing bankruptcies. (Whomever you finally select as your attorney, I believe you should retain only an attorney who practices bankruptcy law day in and day out). Court costs for a Chapter 7 are $299; for a Chapter 13 this amount is $274. And finally you must pay certain fees to third parties who provide consumer counseling courses that, under the 2005 amendments to the bankruptcy laws, must be completed prior to filing any bankruptcy. Learn more about these fees and expenses.
Does my spouse have to file with me?
No, there is no requirement that both spouses file, either under Chapter 7 or Chapter 13. In some situations, filing for both of you might not be necessary, though in most cases the financial problems will best be solved with both spouses participating in a joint filing. This is a matter that we can discuss at the initial consultation. For me to give you good advice on the question whether your spouse should file with you, it is important that in your client questionnaire you provide me with all the requested information for both you and your spouse.
Can I be fired or denied employment because of a bankruptcy?
The Bankruptcy Code prohibits a private employer from discriminating against an employee or prospective employee solely because of a bankruptcy. Obviously, any employer who wants to get around this rule could come up with some different excuse for firing or deciding not to hire you. I can honestly say, however, that most employers understand and respect the law against adverse employment action based upon a bankruptcy.
Can I be denied a student loan on account of bankruptcy?
Again, the Bankruptcy Code strictly prohibits denial of a loan because your or someone with whom you have been associated has filed bankruptcy.
Can a utility (electrical, telephone, etc.) cut off or refuse service because of bankruptcy?
No. The utility can, however, require a new deposit as "adequate assurance" that you will pay for utility services used after your filing of a bankruptcy case. That deposit should be made within 20 days of your case filing.
Will a bankruptcy discharge get rid of a lien on my home?
No. The discharge relieves you of the legal obligation to pay the debt underlying the lien; because of that relief, the creditor holding the lien cannot garnish your wages after your bankruptcy has completed. But the relief does not necessarily extend to a removing the lien. It may be possible in Chapter 7 to have this lien removed in certain circumstances through a special motion filed with the Bankruptcy Court, but the lien is not automatically removed simply by the fact that you filed a bankruptcy case. In Chapter 13, the plan may call for elimination of the lien by paying it in full over the life of the plan. During our initial consultation, I will discuss with you the possible treatment of any liens against your house.
Will the Trustee come to my house?
No one will come to your home to examine your personal belongings, unless there is a suspicion that you have hidden assets or undervalued what you own. Such a home visit is extremely rare. It is somewhat more common for the Trustee to have a real estate agent take a look at your house if there is uncertainty about its value. Similarly, you might be asked to have your car appraised if the value in the "Blue Book" or other vehicle value guide is much higher than the value in your bankruptcy papers. Requests for appraisals of houses or cars are routine matters handled through my office.
Will I have to give up all my property?
No. The Bankruptcy Code provides that a debtor filing for bankruptcy can exempt certain property from the Trustee's right to sell property and distribute the sales proceeds to the creditors in the case. The vast majority of bankruptcy cases are "no asset" cases, meaning that there are no nonexempt assets which the Trustee can sell. I will be able to tell you before you decide whether to file bankruptcy if you have property that the Trustee might seek to sell.
Will bankruptcy stop wage garnishments?
Yes. As soon as your case is filed, creditors must stop whatever collection efforts are underway, including garnishment. The only exception may be for ongoing child or family support ordered by a court, which will not be discharged by your bankruptcy. The discharge of your other debt will forever eliminate a creditor's right to garnish your wages on account of that debt.
Can I keep my car?
Yes, most probably. There are two questions which must be addressed.
Will the Trustee take the car?
The first consideration is to determine whether the Trustee will administer the vehicle (take it and sell it to pay creditors). If, after subtracting any outstanding car loan balance from the car's present value, there is little or no equity in the car, then the Trustee will not take the car. Under Ohio law you can also protect a certain amount of equity in your car and other property through "exemptions". I can tell you at the initial consultation whether you have exemptions that will protect the car from the Trustee.
Will the creditor take the car?
If you still owe money on the car, you can choose to reaffirm the debt to the secured lender, keep the car, and continue paying under the existing terms; or you can buy the car from the secured creditor for its present value (redemption), usually in a single payment. Your creditor will be quite willing for you to reaffirm the debt if you are current in your payments. If you are not current, there are lenders who will make you a loan to redeem the property. Of course, if you choose, you can surrender the car and be free of any obligation to pay for it. We will discuss these choices at your initial consultation.
Will I be allowed to file bankruptcy if my income is high?
As a result of the 2005 changes to the bankruptcy laws, a relatively small population of individuals having income higher than the Ohio median income may be forced to file Chapter 13 rather than Chapter 7. I can tell you at our initial consultation whether you are eligible to file a Chapter 7 case. Very few of my clients are forced to file a Chapter 13 because their income is too high for a Chapter 7.
Can I put my property in someone else's name before filing?
Such transfers, if made within eight years of the bankruptcy filing, may not be effective to put your assets beyond the reach of creditors and bankruptcy trustees. Worse, such action may lead the Court to decide that you should not be relieved of any debt because you transferred assets while contemplating bankruptcy. You should never transfer property while contemplating bankruptcy unless you have specifically been advised to do that by a bankruptcy attorney and a bankruptcy attorney should almost never make such a recommendation.
Can I get credit after bankruptcy?
Most probably. Filing bankruptcy does not prevent you from getting new credit; an entire class of lenders target bankruptcy debtors as customers. Immediately after a bankruptcy filing, however, you can expect credit to be more difficult to get, more expensive, and more limited in amount. By two years after a bankruptcy discharge, many debtors are eligible for mortgage loans on terms just as good as those with the same financial characteristics who have not filed bankruptcy. That is, by two years after completion of your bankruptcy, the size of your down payment and the stability of your income will be much more important than the fact you filed bankruptcy in the past. While the fact that you filed bankruptcy stays on your credit report for up to 10 years, it becomes less significant the further in the past the bankruptcy is. In fact, you are probably a better credit risk after bankruptcy than before.
What if I can't make the payments on my Chapter 13 plan?
Chapter 13 plans are voluntary and you can dismiss them freely. . You also have the right to convert your Chapter 13 case to Chapter 7 if you meet certain qualifications. Also, if you have a temporary interruption in income or an unexpected increase in your expenses, you can ask the court to modify your plan to reduce the payments, or to suspend the payments for a couple of months. If you miss the payments and don't take action to modify your plan or convert your case to Chapter 7, the court will dismiss your case.
Does a previous bankruptcy prevent me from filing again?
It depends on what type of bankruptcy you want to file now, what type of bankruptcy you filed before and whether you received a discharge in the earlier case. Generally, you can get a new Chapter 7 discharge if a previous Chapter 7 case was not filed within the last 8 years. In most situations, the fact of a prior Chapter 7 case will not preclude you from filing a Chapter 13. In all other situations involving prior bankruptcies, the rules are technically complex and are best addressed during an initial consultation.
I provide Chapter 7 and Chapter 13 services to individuals who need Mount Vernon and Knox County bankruptcy attorneys, Newark and Licking County bankruptcy attorneys, and Columbus and Franklin County bankruptcy attorneys.
Under the 2005 amendments to the bankruptcy laws, I am required to state that I am a Debt Relief Agency as that term is defined by the amendments. I help people file for bankruptcy relief under the Bankruptcy Code.
The information on this Bankruptcy Attorney / Law Firm website is for general information purposes only. The communication of this information is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.