Common Questions About Bankruptcy

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Bankruptcy is the last option for some people and many have questions about what will happen to them.  Here are some of the most common questions we hear:

Will I lose my home/car?

That is a question that has to be answered individually.  Florida has some of the most lenient exemptions laws when it comes to your home.  In a Chapter 13 Bankruptcy you can even wipe out a second mortgage or home equity loan.  When it comes to your vehicle, you can also exempt $1, 000 of equity in your car.  You may also choose not to include your car in your bankruptcy and continue making the payments on your own.  There are exceptions and the answer also depends on whether you file a Chapter 7 or a Chapter 13. 

How long does it take to file bankruptcy and wipe out my debts?

The length of time it takes to file largely depends on you.  If you come to us on a Monday, in some cases we can file by Friday.  You may want to talk to us and think it over before filing.  Some clients wait a long period of time before actually filing a bankruptcy.  This can hurt you in the long run because interest and fees are accruing on your debts.  As to the time it takes to wipe out your debts, if you file a Chapter 7 bankruptcy, it usually takes three months for the debts to disappear.  Chapter 13 is a repayment plan that takes three to five years on average. 

I am embarrassed by my financial situation.  Will my neighbors/friends/coworkers find out I have filed bankruptcy?

Bankruptcy records are public and anyone can go online or down to the federal courthouse and see if you have filed for bankruptcy.  Unless you are a celebrity or applying for a high profile job that requires a credit check, it is unlikely if anyone will know if you filed bankruptcy unless you tell them.  However, some publications do run bankruptcy filings and someone may recognize your name.

Can my creditors still call me after I have filed bankruptcy?

NO! Once you have filed for bankruptcy protection, they must stop all collection proceedings until the case is settled.

Every situation is different and the only way to get an answer that will ease your mind is to talk to us about your situation.  We have helped hundreds of clients protect their assets and financial future.