Chapter 7 Bankruptcy

How long does a bankruptcy filing remain on my credit report?

A maximum of ten years under provisions of the Fair Credit Reporting Act.

Will I get to discharge (get rid of) all my debts?

No. Certain debts do not get discharged. Obligations that do not get discharged include:

• most student loan obligations (unless can show undue hardship)
• most types of taxes
• alimony and child support
• liability from driving under the influence
• criminal restitution awards
• debts incurred by fraud or false pretenses
• debts incurred by a false statement in writing (false credit card application)
• debts incurred by embezzlement and larceny
• fines and penalties owned to the government

This is not an all-inclusive list. Please contact Jon L. Martin attorney if you have question regarding whether a particular debt will be discharged if you file bankruptcy.

Is it too late to file bankruptcy if I am being sued or if there is already a judgment obtained against me?

No. Assuming the debt is dischargeable, you can still get rid of the debt even if the creditor has obtained a judgment against you.  However, if the creditor obtained a judgment lien against your property, while this lien may be avoidable in certain circumstances if the proper steps are taken to avoid this lien, the lien will not automatically “disappear.”  It is important to contact an attorney who may be able to take the necessary steps to avoid this lien. Therefore, if you file bankruptcy, while the underlying debt may be discharged, the lien will nonetheless survive, unless a motion is filed.  If this judgment lien is not avoided (or avoidable), you will have to pay the creditor prior to selling/transferring your property.

What documents should I bring to my initial consultation with Jon L. Martin?

Although it is not necessary to bring any/all documents to the initial consultation if you are familiar with your assets and debts, clients often find it helpful to have an attorney review their documents during this stressful time. Further, if you do decide to file for bankruptcy, certain documents will be necessary prior to document preparation and you may find it helpful to have the documents already prepared.

This list is not all-inclusive and your attorney may need to see additional documents. However, the following documents, if available, will be helpful in evaluating your case.

• Income tax returns (both Federal and State) for last 3 years.
• Pay stubs for the past 6 months. If you operate a business, your profit and loss statement for the last 6 months or bank statements with business deposits and withdrawals.
• Copy of the most recent mortgage statement (from all the lenders).
• Copy of your foreclosure notice, if any.
• Copy of your most recent timeshare statement.
• Copy of your most recent mobile home statement.
• Copy of the most recent bill from auto lender.
• Copy of your most recent real estate property tax bill.
• Copy of the most recent statement from your retirement plan.
• Copy of any lawsuit complaints against you (pending within the last 12 months).
• Copy of all your credit card bills, student loan statements, credit card bills, delinquent tax notices, etc.
• Copy of any marital dissolution documents.
• Copy of your social security card.

Chapter 13:

How many months do I have pay off the debts?

This depends upon your plan which should be based on your income over the life of the plan, and the size of the debt. You’ll get anywhere from 36 up to 60 months.

Can I pay it off early?

Not really, because if your income would allow for faster payback than 36 months, the Trustee will normally set the plan at 36 months and require a larger percentage of funds go to your unsecured creditors.

Under the plan, how much am I expected to pay on unsecured debts?

Normally it’s 50 percent of the creditors claim spread over the 36 (or up to 60 months) plan. For instance; if you owed $5,000 on a credit card then you would typically pay back $2,500 or about $69 per month.

What if I owe so much that I’ll need more than 60 months to pay off my creditors?

Some creditors may be willing to work with you to come up with creative payment options but if not, then normally your case will be converted to a Chapter 7 Bankruptcy.

Can they still foreclose on my house after I have filed bankruptcy?

Not if you’ve made all mortgage payments on time. Otherwise the court may give them permission to foreclose.