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Frequently Asked Questions

Find answers to common questions about debt relief and bankruptcy

General Questions

FAQs

How do I know if bankruptcy is right for me?
Bankruptcy may be suitable if you're facing overwhelming debt, creditor harassment, wage garnishment, or foreclosure. We recommend taking our financial assessment quiz or scheduling a comlimentary consultation to evaluate your specific situation.
What's the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 eliminates most unsecured debts within 3-6 months but may require liquidating some assets. Chapter 13 creates a 3-5 year repayment plan allowing you to keep your property while paying back a portion of your debts based on your income.
Will bankruptcy stop creditor calls and lawsuits?
Yes. Once you file bankruptcy, an automatic stay goes into effect that legally prohibits creditors from contacting you, filing lawsuits, garnishing wages, or continuing with collection activities.
What debts cannot be discharged in bankruptcy?
Certain debts typically cannot be discharged, including most student loans, recent tax debts, child support, alimony, court fines, and debts resulting from fraud or willful injury.

Filing Process

FAQs

How much does it cost to file bankruptcy?
Filing fees in California are approximately $338 for Chapter 7 and $313 for Chapter 13. Attorney fees vary based on case complexity, typically ranging from $1,500-$3,500 for Chapter 7 and $3,000-$5,000 for Chapter 13. Many attorneys offer payment plans.
How long does the bankruptcy process take?
Chapter 7 cases typically complete in 3-6 months from filing to discharge. Chapter 13 involves a repayment plan lasting 3-5 years. The preparation time before filing varies based on case complexity.
Will I lose my property if I file bankruptcy?
Not necessarily. Chapter 13 allows you to keep property while repaying debts. In Chapter 7, California exemption laws protect many essential assets including a portion of home equity, vehicles, retirement accounts, and household goods.
Do I need a lawyer to file bankruptcy?
While not legally required, working with an experienced bankruptcy attorney significantly increases your chances of a successful filing. The legal process is complex, and mistakes can lead to dismissed cases or failure to discharge eligible debts.

After Bankruptcy

FAQs

How long will bankruptcy stay on my credit report?
Chapter 7 bankruptcy remains on your credit report for 10 years from filing date, while Chapter 13 remains for 7 years. However, the impact on your credit score diminishes over time.
How soon can I rebuild my credit after bankruptcy?
You can begin rebuilding credit immediately after discharge. Many clients qualify for secured credit cards or small loans within months of filing. With responsible use, many achieve credit scores in the mid-600s within 1-2 years.
Can I file bankruptcy again if I've filed in the past?
Yes, but time restrictions apply. You must wait 8 years between Chapter 7 filings, 2 years between Chapter 13 filings, 6 years between Chapter 13 and Chapter 7, and 4 years between Chapter 7 and Chapter 13.
How soon can I buy a house after bankruptcy?
Most mortgage lenders require waiting periods: typically 2 years after Chapter 13 discharge and 2-4 years after Chapter 7 discharge. FHA loans may be available within 1-2 years with demonstrated financial recovery.

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