Frequently Asked Questions
It is a federal court process. It is designed to help consumers/businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies are described as liquidation or reorganization.
An automatic stay goes into effect when you file for bankruptcy. To clarify, this prohibits most creditors from taking any action to collect the debts you owe them unless the court lifts the stay.
Chapter 7 bankruptcy causes most of your debts to be discharged, and in return, the bankruptcy trustee can take any property you own that is not exempt from collection.
On the other hand, Chapter 13 bankruptcy requires that you file for a repayment plan with the court to pay back your debts over time.
If you can meet the eligibility requirements for both, then you can choose which type of bankruptcy makes the most sense for you.
However, if you have secured debts of more than $922,975 and unsecured debts of more than $307, 675, you will have no choice, and you cannot use Chapter 13.
In most cases, our firm charges an attorney fee of $2,000 to represent a debtor from beginning to end. However, depending on individual financial circumstances, this fee can vary.
For example, the fast file option we offer allows you to only pay $400 or $430 for joint before filing your case.
This includes the filing fee, credit report, and credit counseling. Likewise, an agreement will be put into place to pay $250 per month for eight consecutive months.
Further, we offer a discounted option to save $500 if you pay the entire attorney fees of $1,500 plus the $400 or $430 in costs before filing. So, the costs of monitoring monthly payments are saved.
Judges typically required debtors to pay the entire attorney fee before filing for bankruptcy.
In other words, the court determined that a lawyer who collects any part of his bankruptcy fee after filing is attempting to collect a pre-bankruptcy debt that is included in the bankruptcy.
However, after a ruling by a local bankruptcy judge, Parker & DuFresne offer an option to file bankruptcy before the attorney fee is paid.
Yes. To clarify, proof of employment or receipt of other regular monthly income and you must have a bank account.
Likewise, we must be able to withdraw the monthly installment from that account.
No. To clarify, you can pay the entire attorney fee before filing.
Yes. The Bankruptcy Code allows a debtor to pay attorney fees after the Chapter 13 bankruptcy is filed.
Likewise, we have flexible options for the payment of Chapter 13 attorney fees.
Firstly, the last three years of tax returns must be provided to the Chapter 7 trustee overseeing the case.
But, we can track down your tax information for you for no extra charge.
To clarify, the only payment that is made is the $13 charge to the IRS to order a tax transcript directly from them.
The most common bankruptcy is Chapter 7. To clarify, it does not require any filers to pay back any portion of their debts.
On the other hand, Chapter 13 might be the best choice depending on your situation.
For example, if you are behind on your mortgage and want to keep your house, Chapter 13 will set up a plan for you to repay over time.
Meanwhile, Chapter 7 could make you lose your home.
It depends on the type of debts that are owed.
For example, some debts cannot be discharged in bankruptcy. You will continue to owe them just as if you never filed for bankruptcy.
Likewise, debts that will not be wiped out are child support, alimony, and certain kinds of tax debts.
By filing Chapter 13, you lose no property through your repayment plan.
However, in Chapter 7, you select the property you are eligible to keep from either a list of state exemptions or exemptions provided in the federal Bankruptcy Code.
How often you can file a bankruptcy depends upon your specific circumstances. Moreover, this includes which type of discharge you received previously.
For Consecutive Chapter 7 Bankruptcies: If you received a discharge in a Chapter 7 bankruptcy, you must wait eight years from the date the previous case was filed to file a new Chapter 7.
For Consecutive Chapter 13 Bankruptcies: If your debts were discharged in a prior Chapter 13 case, you must wait two years from the date the old Chapter 13 case was filed to file a new Chapter 13.
Learn more about how often you can file for bankruptcy, including the option to file for different chapters consecutively, in our blog.