Frequently Asked Bankruptcy Questions

Probably! The actual percentage of debtors who are not eligible to file Chapter 7 under the new law would not be much different if the laws had not changed. For Chapter 13 filers, the difference is even less! Bankruptcy Guru recommends that you meet with an experienced Bankruptcy attorney to see if you are eligible to file.

If you are still making auto and house payments, then you will need to keep making those payments if you wish to retain the collateral. However, the Bankruptcy Court can still liquidate (seize & sell) your home or vehicles if you have too much equity in the property. The most equity a debtor may posses in their home is $125,000.00 in the State of Washington. An experienced Bankruptcy attorney can help you determine if a Bankruptcy filing could result in liquidation.

Yes. The Bankruptcy Code requires that all debtors must attend at least one hearing in Court called the Section 341 -Meeting of Creditors hearing. In certain instances, the Debtor may attend the hearing telephonically with the Court's prior permission. Most attorneys but not all, will attend the hearing with you, so make sure you ask your attorney if he or she will appear in court with you.

Yes. Before your case can be filed, you must speak with a Court approved credit counselor at least once. Also, you must attend at least one Court approved Financial Management class before your Discharge can be granted. However, all classes can be attended and completed online or on the phone rather than in person.

Bankruptcy Guru is not qualified to determine if you will be eligible to receive credit or a loan from any potential creditor or lender. However, it is very common for debtors to receive offers of credit even while their Bankruptcy is still pending! Bankruptcy Guru strongly recommends that you be extremely careful when obtaining new credit after you have received your fresh start!

Yes! Absolutely, you are required by law to list all your creditors when you file. However, you may enter into a legally binding agreement to pay back any creditor (reaffirmation agreement) you wish. Make sure you discuss the details of such an arrangement with your attorney.

A better question would be "what debts do not go away (discharge) when I file?"In Chapter 7 cases most taxes, child support, obligations awarded in a family law decree, most student loans, traffic tickets, criminal penalties & restitution, as well other debts owed to government entities cannot be discharged by filing a Chapter 7. If your are like most people, then most of debt is comprised of credit card, medical bill and unsecured personal loans, all of which can be discharged provided there are no issues of fraud surrounding the debt.

Yes. You are not required to have an attorney when you file for Bankruptcy. In fact, you are not required to have an attorney if you are standing trial for murder either! However, Bankruptcy Guru recommends that you at least speak with an experienced Bankruptcy attorney before you decide to file.

Yes. My initial in-office consultation is always FREE. However, I do charge for the consultation if you have already filed a Bankruptcy case that is still open and you want a second opinion, or you want me take over the case.

Please bring the following to your appointment:

1. Most recent required tax return or a copy.
2. Most recent current pay stub or a copy.
3. Last pay stub from all jobs you had during the last 6 months or copies.
4. Written list of your debts, and/or a credit report or copies of all your bills.