Like so many legal questions, the answer is “It depends.” Meeting with an attorney is the first step in any bankruptcy analysis. Our attorneys take a client’s whole financial situation into account and do a sophisticated evaluation of the costs and benefits of pursuing one legal remedy over another. Some debtors may benefit from bankruptcy, while others may pursue debt settlement or debt management alternatives. That said, bankruptcy is often a good option for debtors who have a large amount of unsecured debt (i.e., credit cards), who have fallen or are in danger of falling behind on their payments, and who have no realistic chance of becoming current on their payments without some change in financial direction. The bankruptcy option gives debtors a chance to “wipe the slate clean” as to their unsecured debts, while still often keeping their home or car. Different types of bankruptcy filings are available for debtors, depending on the primary types of debts, the property at issue, and the debtor’s income. There are always options, and your ADRN attorney will do all he can to “find a way to yes” in order to give you relief from your debts. Only by meeting with an attorney can this question be answered with certainty.

Depending on your particular situation, the answer may often be that you may be able to keep your home or your automobile. The majority of our Chapter 7 debtors, for example, are able to hold on to their personal residence or automobile. The end result depends on a variety of factors, such as whether you will able and willing to reaffirm certain debts after bankruptcy, which type of bankruptcy plan is right for you, and your level of personal or combined family income. As in most aspects of the law, providing a straight “yes” or “no” answer would usually be misleading, without taking into account each unique example. If it is important to you to keep certain real or personal property, you must inform your attorney at the outset of your case, so that your legal outcome can be planned accordingly. More likely than not, our attorneys will be able to fashion a legal remedy that fits your particular wants and needs, and enables you to keep your home and/or you automobile.

Bankruptcy is an effective tool for discharging (that is, eliminating) most kinds of unsecured debt. Unsecured debt is debt that is not secured by an underlying collateral. A consumer credit card is a classic example of unsecured debt in that there is specific property available to the bank to take back and sell to satisfy the debt should the lender default. Secured debt on the other hand, is a loan which is guaranteed by a specific piece of real or personal property. A automobile loan is one type of secured debt. When a debtor defaults on her automobile loan, the bank has the option of exercising its right of repossession, that is, the bank may take back the car (provided such takeback is peaceable and within other prescribed legal limits) and sell the car at an auction to satisfy all or a portion of the debt. The borrower (former automobile owner) may or may not be liable for the difference between the price the automobile fetched at auction and the balance on the loan. Most unsecured debts are dischargeable in bankruptcy; many secured debts are also. Medical bills are often dischargeable, as are many payday advance and personal loans. Some examples of non-dischargeable debts include student loans, certain tax debts, child support or alimony dues, criminal and civil restitutions and certain judicially-imposed awards (such as in divorce).

Bankruptcy does impact a debtor’s credit score. However, it is important to know that there is life after bankruptcy! In most of our clients’ cases in which bankruptcy is the best option, the client, with her attorney, has done the math and realized that a fresh start in bankruptcy, despite an adverse reflection on her credit, is better than just treading water servicing debt forever. Bankruptcy, while it does appear as a negative mark on a credit or FICO score for several years thereafter, is in many cases the only way a debtor is able to reclaim their financial independence. It is, after all, a clean slate and a fresh start. After you have been discharged from your debts, you are able to do financial planning for the long term, and are able to budget accordingly. You will be able to get loans and borrow money again. But since you are now able to budget more responsibly, it will be easier for you to meet those future loan obligations. It follows that you will build a strong credit score over the years, and if you continue to use credit and borrow responsibly, will be able to secure credit for all you need to lead a full and happy life once again.

Depending on the complexity of your case, after an initial consultation with your attorney, he will put together a strategy which he feels is in your best interest. Once the bankruptcy petition is filed, most consumer debtors in either a Chapter 7 or Chapter 13 case receive a full discharge or repayment plan within three to four months. However, this very much depends on the nature and complexity of the case and the general speed with which the bankruptcy is able to process our petition. Generally speaking, most consumer debtors receive a court pronouncement within three to four months of the initial filing.

In order to advise you properly, your attorney will require that you are fully candid with him about your financial affairs, including all debts and other such obligations, child support or alimony you are paying, income, and what kinds of property assets and liabilities you have. All information collected by your attorney is held in absolute confidence and subject to the very high legal standard of attorney-client privilege and will never be revealed to anyone except the bankruptcy court and the parties to your action. Before arriving at our office for your initial consultation, one of our legal assistants will advise you as to what kind of documentation you will need to bring in to meet with your attorney. Often, these documents will include credit card statements, loan agreements you may have signed, any foreclosure filings (if applicable to your situation), pay stubs, taxes, and any other proof of income or debts. It is in your best interest to disclose all information as requested by your attorney, as any incomplete or missing documentation may delay your case and require the payment of additional filing costs to the bankruptcy court.

Yes. Bankruptcy, being a federal proceeding, trumps any foreclosure or collections actions pending against you in state courts. As such, from the moment a bankruptcy petition is filed, collectors and banks will be automatically legally enjoined from pursuing any further litigation or trying to keep collecting on a debt. The attorneys handling the foreclosure on behalf of your mortgage lender will be notified by our firm that you are filing for bankruptcy, and any further proceedings are halted pursuant to the federal bankruptcy code’s automatic stay provision- a potent remedy that requires all lower court collections and foreclosure litigation to immediately grind to a halt. This is why bankruptcy is often a useful tool for homeowners facing foreclosure, since it is often allows a homeowner more time to get their financial affairs in order, while protecting the property from being sold at a judicial sale. During bankruptcy, certain debts can often be reaffirmed, enabling a homeowner to keep his property after the bankruptcy proceedings have been completed.

Yes. As mentioned above, bankruptcy is a powerful shield against any further collections attempts or litigation. Once debt collectors are informed of a bankruptcy petition being filed, they are required by law to cease all collections activity, pursuant to the pending bankruptcy proceeding. They will no longer be attempting to contact you at home or at work in order to collect on debts. Having retained an attorney to represent you, we will do all we can to ensure that debt collectors follow both the letter and the spirit of the law, and that you are protected from further harassment and the behest of overzealous collections agency.

Generally, no. At Attorney Debt Relief Network, we hold the confidentiality of your legal affairs in the utmost of importance. However, it is important to note that bankruptcy is technically a public matter (though bankruptcy proceedings themselves take place behind closed doors), as such, someone deliberately searching for records of a particular bankruptcy may be able to find this information, if they know where to look. Sensitive personal information, such as a social security number, is always deleted from public bankruptcy court records, so this information is of limited use to prying eyes. However, there is no “notification” sent to any of your employers, friends, or co-workers about your bankruptcy case. So in most scenarios, the reality is that bankruptcy remains a private matter, known only to you, your creditors, and your attorney.