FREQUENTLY ASKED QUESTIONS
How much does it cost to file for bankruptcy?
A chapter 13 and chapter 7 bankruptcy have different costs and fees. Both include hard costs such as filing fees, credit reports, credit counseling certificates, and homestead deed filing fees. These hard costs are fixed amounts determined by the courts and vendors providing those services, typically between $25 to $80 for everything except the bankruptcy court filing fees, which is $335 for a chapter 7 and $310 for a chapter 13 bankruptcy case.
How can I afford to pay my attorney fees if I’m filing for bankruptcy?
If you are filing a chapter 13 case, most attorneys will allow a significant portion of the legal fees to be repaid through the chapter 13 plan over a period of 3 to 5 years. The attorney will perform most of the work before getting paid, taking a risk that they may not be paid for their work, if the case fails. This risk, in turn, gives the attorney a strong incentive to get your plan confirmed and help you obtain your discharge.
How long does the bankruptcy last on my credit report?
A discharged chapter 7 case will stay on your credit report for 10 years.A discharged chapter 13 case will remain on your credit report for 7 years from the date of filing your case.
Will I lose my home after filing for bankruptcy?
If you are current on your mortgage payment, and there is little or no equity in your home, then you may usually keep your home.Please note that you must continue to make your regular mortgage payments.
Can I keep my car if I file for bankruptyc?
In most instances, you may keep your vehicle, as long as you are current on your car loan and do not have excess equity beyond state exemption laws.
I want to file a chapter 7 but I already filed a case less than 8 years ago. Can I file another chapter 7 bankruptcy?
If you filed your prior chapter 7 case less than 8 years ago, and received a discharge, then you must wait 8 years before you can receive a discharge in another chapter 7 bankruptcy case.If your prior chapter 7 case was dismissed, then you may file another chapter 7, but you may want to seek legal advice to determine if the reason your case was dismissed would cause potential problems in your new bankruptcy case.
Can I convert my chapter 13 case into a chapter 7 case?
The date that you convert your case does not determine whether you can receive a discharge from a chapter 7 case.The eight-year waiting period between two chapter 7 cases runs from the date that the original chapter 7 case was filed, and the date that the chapter 13 case was filed.In other words, if you are not eligible for a chapter 7 case when you filed your chapter 13 case, then you are not eligible to receive a discharge through a chapter 7 case even if you wait to convert your case later in time.
What is the difference between a dismissal and a discharge?
A discharge wipes out your liabilities on most debts.There are exceptions that an experienced bankruptcy attorney can point out to you.The discharge is the goal for filing bankruptcy.You want a clean slate and fresh start from your creditors.Your credit should improve once you receive your discharge as the debts have been wiped away.