With that done, after you’ve made a determination that you’d want to file for bankruptcy, and that you best qualify for or want to file for either
CHAPTER 7 bankruptcy or a CHAPTER 13, then you can go right ahead and take advantage of our Afford-Bankruptcy.Com advantage
here to get your bankruptcy filing under way right away - at LOW, LOW, affordable COST that you can readily afford.
Q3: What would be the basic, barest minimum Eligibility Requirement that a Debtor Should Look to Have to File for Chapter 7 or 13
Bankruptcy as a “consumer” debtor?
A: Basically, for Eligibility for a Chapter 7 filing, you’ll need to meet these simple conditions:
(1) You’ll need to be an individual or a human person (or a married couple, if applicable) (as opposed to being a business corporation, or
a Limited Liability Company), or a sole proprietorship of a business; (2) you may NOT be any of the following: a railroad, a domestic or
foreign insurance company, a bank, savings and loan association, a credit union, or a governmental unit; and (3) you have to have been
"domiciled" (had your fixed, permanent home or residence), or your principal place of business or principal assets, in the Federal District
of the state in which you intend to file in, for at least the last 6 months immediately preceding the date of your planned bankruptcy petition
filing, or for longer part of such 6 months than in any other District. {CLICK HERE for further eligibility requirement information details].
Or, For Eligibility Requirements To File Under Chapter 13:
Basically, for a Chapter 13 filing, you’ll need to meet these simple conditions:
(1) You’ll need to be an individual or human person (or a married couple) with a "sufficiently stable regular income" of any sort; and NOT a
partnership, or a trust, estate, corporation or governmental unit, a stockbroker or commodity broker. (In other words, wage earning
individual debtors, or those engaged in business, self-employment, farming, and the like, will generally be eligible; as would, also, also
retired individuals, pensioners, welfare recipients, persons on social security or those who derive their income from investments, etc.)
Persons who operate small 'one man' type of corporations or partnerships for their means of livelihood, will also qualify, except that those
are to file for bankruptcy in their individual, personal capacities on their personal debts.)
(2) The total debts you owe alone (or jointly, if a joint petition by a married couple) must NOT be in excess of $1,010,650 in SECURED
debts, or more than $336,900 in UNSECURED debts as of the date of filing the bankruptcy petition (Note that these figures constantly
change over time with rise in price index, and should be constantly adjusted, accordingly).
(3) You’ll need to meet the same "domicile" or permanent residence requirement as are outlined above for Chapter 7 above. {CLICK
HERE for further eligibility requirement information details].
Q4: I read that there are TWO basic types of personal bankruptcy - something called Chapter 7 and Chapter 13 types. Please explain
them in some little details.
A: In the Chapter 7 type of bankruptcy, the objective of the debtor is simply to obtain the "DISCHARGE" of his/her debts by the Court - that
is, to have them wiped out or cancelled so that he (she) is legally freed ("discharged") from having to pay them. In this type of bankruptcy,
the Court, through a court-appointed "trustee," takes a hold of any major assets the debtor may own, if any (assuming that he/she has
any), and "liquidates" or sells them to pay back the creditors - except for those kinds of assets which, under the law, is designated as
being "exempt" property. (Exempt property are property which may NOT be liquidated or seized in personal bankruptcy from a creditor in
bankruptcy)
The Court then issues an Order of Discharge discharging (i.e., wiping out as forgiven) the debt obligations owed by the debtor. {CLICK
HERE for further eligibility requirement information details].
Chapter 13 type of bankruptcy, on the other hand, is basically a "Debt Adjustment" or "Repayment Plan" arrangement, wherein the debtor
basically works out an arrangement (a "Plan") with the creditors under the supervision of a court-appointed Trustee in which the debtor
offers to repay his debtors over a period of usually 3 or 5 years out of his future earnings, usually on terms more favorable or more
manageable for the debtor. The court then orders an "automatic stay" (i.e., a prohibition) against creditors or collectors making any further
collection efforts, or imposing any late payment or interest charges against the debtor, though it adds on its own "administrative charges"
to the total bill of what you have to repay. Then, through the trustee, the court supervises the debtor's repayment of the Plan amounts over
an extended period of time (usually 3 years, but may extend to up to up to 5 years), and at the completion of that period, if the debtor had
complied with the payment Plan, the debtor is granted a bankruptcy discharge by the court on the debts.
Q5: Which Type of Debtors Generally Go For Chapter 7?
A: Most debtors who file for personal bankruptcy (about 70% of them), file under Chapter 7. This is because the overwhelming majority of
debtors who file personal bankruptcy – some 90 to 95 percent of them, according to various estimates - fall under the so-called "no-
asset" debtor category, that is, debtors who practically have no assets whatsoever that can be seized or liquidated in bankruptcy, in the
first place, and simply want to completely clear themselves of their debts so that they can start off with a "fresh start" in their lives. And
Chapter 7 provides the average debtor exactly that option. Most debtors who file under Chapter 7, file to get rid of debts which are largely
UNSECURED types (i.e., debts having no collateral pledged behind them), or file simply to wipe out most of their debts so they will not
have to worry about them again. As a rule, if your debts are mostly loans or credit cards, medical bills and court judgments, you would
most likely be the type that would go for filing for Chapter 7.
Q6: Which Type of Debtors Generally Go For Chapter 13?
A: Chapter 13 bankruptcy is the second most popular type of personal bankruptcy for debtors. In general, Chapter 13 tends to be usually
used by persons who owe on a major property that is non-exempt, typically a home, and have fallen behind in their mortgage payments
and want to avoid losing their home in foreclosure. A debtor in such a predicament will, for example, be given a chance in a chapter 13 to
catch up on his or her mortgage arrears.
Chapter 13 is better suited to those situations where debtors have some major SECURED type of debts (e.g., a mortgage or an auto
payment), and feel it will most serve their most vital needs if they pay the SECURED debts they owe on such property in order to retain
such property, but need more time than the creditors will allow them to catch up on their payments on such payments. Such will be the
case, for example, where a home owner may have fallen behind on his (her) home mortgage payments, and just wants a legal vehicle
and protection (i.e., bankruptcy) by which to ward off the mortgage bankers so that he can catch up on his past mortgage arrears and have
a chance to retain the vital property.
Q6B: Do I really have a choice in picking whether to file for Chapter 7 or Chapter 13?
A: Actually, barely any choice at all! The fact is that under the current law that’s in operation currently which came into effect in the 2005
changes in the law, debtors ceased having any more real choice or say in which of the two options one may prefer or pick to file. Why?
Because the new (the post-2005) system necessitates that, FIRST, you should take the “means test” to determine first of all whether,
according to the formula of that test, you can make some payments at all on your debt – which means, in effect, whether you qualify to file
ONLY for Chapter 13.
If it is determined, primarily through that test, that you qualify to file under chapter 7, then you may go ahead and file under chapter 7. You
may file Chapter 13 only if you are NOT allowed to file (if you are not qualified for) Chapter 7. Or, in situations where it may be more
necessary or advisable for the debtor to file under this chapter, if you are facing foreclosure and need time to get caught up on your back
payments. As a rule, because a debtor has to make payments in a chapter 13 bankruptcy, most debtors who file Chapter 13 are debtors
who are facing something like a foreclosure of their homes or repossession of their indispensable vehicles, and are behind on their
payments, and see chapter 13 as a vehicle to buy valuable time for them to catch up on their back payments and become current again.
Q7: Can you file for Chapter 7 bankruptcy, if you are a small business corporation or some other business entity?
A: The answer is YES. You certainly can, just as well as an individual does. But you’ll have to file under a slightly different category as a
Chapter 7 business corporation debtor.
Q8: Does the Constitution say, or is there any Law that says, that only
Attorneys Can or Should Do Bankruptcy for a Debtor?
A: Actually, absolutely NONE! Zelch! ZERO. Simply none whatsoever
anywhere. Defy anyone to tell – to PROVE it – to you otherwise! That’s
just one of the many unfortunate mythologies that the powerful bankruptcy
lawyers and bar, have created and tried to foster among the general
population around the bankruptcy issue for nothing other than their own
narrow financial interests. (See this PAGE for more on this).
Q9: But isn’t Bankruptcy Supposed to be Something that Only Lawyers
Can Do, According to Many Bankruptcy Lawyers I’ve Heard from?
Because it’s supposed to Be too “complex” for Ordinary Mortals to Do?
A: Actually, no. Even many of their lawyer colleagues who are objective and
unbiased about it, openly admit and confess that. But just one thing: if it’s
supposed to be so “complex” that non-lawyers CAN’T do it, how come over
50 percent of the bankruptcy filers who filed for bankruptcy in several
jurisdictions across America (New York, California, Arizona, etc) in the
pre-2005 new law, were debtors who filed by themselves – non-lawyers?
And how come that, even now, in this post-2005 new law era, some 20-30
percent of the bankruptcy filers in a growing number of jurisdictions, are
non-lawyers? (See this PAGE for more on this).
Q10: Are there any situations when a debtor should Legitimately
consider using an attorney for his/her bankruptcy?
A: Yes. Sure, under law, you (any debtor or citizen whosoever) has an absolute legal right to file for bankruptcy without an attorney, if that’s
what he or she prefers. The plain reality (if the simple truth be told!), is that for most people in most bankruptcy cases, filing for bankruptcy
is just about preparing tons and tons of pages of simple fill-in paperwork, and nothing more. Lots and lots of simple paperwork that,
nevertheless, even many experts (the objective ones who are not just primarily interested in protecting their livelihood and personal
incomes, including many lawyers themselves) say, have really more to do with accounting and bookkeeping, than with “law.”
Nonetheless, if you own a business, or litigation and legal contest is involved in your bankruptcy case, or your bankruptcy case has an
above-average or complicated financial or investment situation, it will clearly be wise, prudent, proper and advisable in such a situation,
for you to get advice from an attorney in your bankruptcy case, or, before you may have your papers prepared for you by Afford-Bankruptcy
or any other competent legal documents preparers.
The bottom line: Clearly, there are many instances when the issues involved in a particular, specific bankruptcy case may, in fact, be quite
complex that it will be absolutely necessary and fitting in that case to use the services of a competent, experienced lawyer. Say, in
situations, for example, where litigation is required, or where the creditors are putting up a court fight and stiff objection against the
discharge of a debtor’s debt, and the like. But, the fact of the matter is that for the vast majority of the personal bankruptcy cases today, that’
s not what is involved – they’re usually “zero asset” cases with no property to seize or liquidate, no contest or even appearance, by the
creditors. See this PAGE for more on this.
Q11: Who deals with my creditors and the bill collectors When I’m involved in bankruptcy?
A: First, it depends on the kind of debts a debtor has, and what bankruptcy he (or she) files. If the debtor has a SECURED kind of debt
(say, an auto payment or a mortgage) that he wants to keep paying upon because he needs the underlying property to make it, then he
can simply continue to make the payments on it as usual (would probably just “reaffirm” that debt), and he’s got nothing to worry about
since he’ll retain the property. As for other creditors of the debtor who have UNSECURED kinds of claims or debts with the debtor, the
debtor really don’t have to “deal” with them that much; much of such debts are discharges (wiped out) in bankruptcy and the debtor would
not have to pay them, and any direct “dealings” that will be required to be done with the creditors during the bankruptcy process, will really
have to be done by the bankruptcy court and the trustee, and not by the debtor.
Q12: Will my employer and landlord find out about my bankruptcy? And CanI be fired for filing for bankruptcy?
A: They might find out. But so what – unless, as in the case of your landlord, for example, you continue to owe him rents after you’ve filed
for bankruptcy, in which case you may then possibly face an eviction for your continued non-payment of rent. Bankruptcy is public record,
but the court does not directly notify your employer or landlord (unless, of course, they’re among your creditors you listed in the bankruptcy
petition papers). But the bottom line is that, by law you cannot be fired or in any other way discriminated against by such persons (or any
others) simply for the reason that you filed bankruptcy. That’s strictly against the law!
Q13: Can I go to jail if I file bankruptcy or don't pay my debts?
A: No. Not at all! Prominent Americans have filed for bankruptcy over the years and centuries, from Governors to mayors and millionaires
and movie stars. Have you ever heard of any one of them being put in jail just because they did that? Now, just this past year alone in
2008, OVER one million Americans (the actual figure could actually be far more than that since many of those involved marital couples!)
filed for bankruptcy. How many of those OVER 1,064,000 Americans did you hear went to jail just for doing that? ZERO! No, remember,
filing for bankruptcy is a perfectly LEGAL thing to do. A perfectly CONSTITUTIONAL thing. So, how and why would you be put in jail just for
doing something perfectly LEGAL and CONTSTITUTIONAL? Bottom line: if you are an HONEST debtor who honestly lists your debts and
liabilities and honestly files for bankruptcy, you’ve got nothing to worry about, about going to jail for filing for bankruptcy. Absolutely nothing.
Look, CLOSE TO 1,OOO,000 HARD-WORKING, PREDOMINANTLY HONEST AMERICANS LIKE YOU FILE FOR BANKRUPTCY EVERY
SINGLE YEAR, these days! That's the "new reality" in America today! And, you know what? These people are only just beginning these
days, only this lately, to catch up with such big, giant, (once) super rich corporations in American's history as Johns Manville, Continental
Airlines, and others, and once ultra wealthy individuals, such as former Texas governor John Connally and rock star James Taylor, in
using the Constitution to get their legal rights! That's what this dramatic growth in consumer debt and consumer bankruptcy, in recent
years, have been all about - the almost tripling in personal bankruptcy since the late 1970s!
So, don't worry, fella, you're NOT, and are not likely to be, nearly alone these days, if you opt to file for bankruptcy because you can't pay
your debts (providing you're an honest debtor who honestly can't really pay your debts).
Q14: What legal Reliefs or Protections Do You Get From Filing Bankruptcy?
A: For all practical purposes, typically, bankruptcy (Chapter 7) will "discharge" (i.e., it will wipe out and relieve you of) almost all debts or
financial obligations that you have (all except for a few debts which are of the so-called "non-dischargeable" type). Typically, bye and large
when you secure bankruptcy, it means for you that you are now freed of all (or just about all) of your debts, and are now at liberty to make a
"fresh start" in life unburdened by past debts. You become, in effect, like a person whose death sentence is commuted by a Governor or
the President - a person granted a whole "new lease on life"! See this PAGE for more on this.
Q15: What Types of debts are Dischargeable (Cancelled) Through Bankruptcy?
A: Bankruptcy, typically meaning Chapter 7, can eliminate just about most, if not all, of the major kinds of debts that
most debtors usually carry or wrestle with the most, such as the following types of debts:
Q16: What Types of Debts are NOT Dischargeable through Bankruptcy?
A: The following are some of the principal types of Non-dischargeable debts in bankruptcy:
Liens, such as mortgages and security interests in cars as are some other types of obligations including: Federal,
State and local tax claims (subject to specific time rules)
1. Debts owed for excise or custom duties (import duties, sales taxes, estate and gift taxes, gasoline taxes, etc) due
within the last 3 years before the date of filing the bankruptcy petition.
2. Debts for taxes whose last due date for filing the returns occurred within 3 years from the date when the
bankruptcy petition is filed (subject to specific time rules)
3. Income taxes which might have been due
4. Spousal and Child Support
5. Most types of student loans, etc. (See this PAGE for more on this).
In general:
A non-dischargeable debt survives the bankruptcy proceeding, meaning
that the debtor still has the obligation to pay this debt and the creditor retains every right to collect.
Q17. Is there a court fee to file a bankruptcy case? Can it be waived?
A: There is a fee to file a bankruptcy petition. It varies depending on which chapter of bankruptcy (chapter 7, 11, 12
or 13) you are filing. This fee cannot be waived, and a case can be dismissed for failure to pay it. The fee is due at the
time the bankruptcy petition is filed. An individual debtor (but not a corporation or partnership) who is unable to pay
the full fee at the time of filing, must file an application with the Court Clerk’s office to pay the fee in installment
payment basis at the same time that the petition is filed. This form is available from the Clerk's Office. Experts say that
even if you happen to choose this option, that it will still serve you better if you try and pay a minimum of, say, $50 at
the time you bring your paperwork to the court, and make sure pay up the remainder of the fee in monthly
installments within three months. ((Not paying up this money, or paying it up on time, has been known to be the
cause which lead to the dismissal of may bankruptcy cased filed by debtors).
Q18: What is the Bankruptcy Code?
A: Created in 1978, the Bankruptcy Code contains the rules that provide for bankruptcy relief for businesses or
individuals in financial difficulty. There are two main options under this Code for bankruptcy relief: liquidation (Chapter
7), and reorganization (Chapters 11, 12 and 13). The Bankruptcy Code is available at law libraries. You may also
access the Code via a link from the web sites of many local bankruptcy courts.
Q19: What can I do if I don't understand some of the terms used in bankruptcy?
A: One helpful avenue, check the glossary of bankruptcy terms on this web site. You can look up words used in
bankruptcy that are not familiar to you there.
Q20: You’ve talked about Chapters 7 & 13 bankruptcies, what is the
difference between them and Chapter 11?
A: Chapter 7, for example, is often called the "liquidation chapter." Liquidation is the process through which the
debtor's non-exempt property is sold for cash by a trustee and the cash is distributed to creditors. In contrast to
Chapter 7, which is used (whether by individuals, partnerships, or corporations) who have no hope for repairing their
financial situation to liquidate the debtor's estate, Chapter 11, on the other hand, is often called the "reorganization
chapter." Chapter 11 allows corporations, partnerships, and individuals to reorganize their debts, without having to
liquidate all their assets. In a Chapter 11 case, the debtor presents a plan to creditors which, if accepted by the
creditors and approved by the Court, the court will allow the debtor to reorganize personal, financial or business
affairs and again become financially productive.
In Chapter 13, an individual with regular income who is overcome by debts but believes such debts can be repaid
within a reasonable period of time, may file under this Chapter of the Bankruptcy Code, permits the debtor to work
out a payment “plan” in which the debtor agrees to pay a certain percentage of future income to the Bankruptcy
Court for payment to creditors. If the Court approves the plan, the debtor will be under the Court's protection while
repaying such debts.
Q20B: What kind of paperwork and forms, for example, are involved in bankruptcy Which You May prepare for a
debtor?
A: For Chapter 7
Chapter 13
In addition you must also file:
Chapter 13 Plan to all creditors - See local rules for service requirements)
Chapter 11
Chapter 11 (For corporate debtors, they must be represented by an attorney).
Q21: I've heard that I can only file a Chapter 13. Is this true?
A: Under the law which came into effect in October 2005, the new income consideration that were put in place began
to require debtors with income above a certain amount to file only Chapter 13, and make some repayments on their
debts, instead of Chapter 7, where you would not have to pay. That requirement is what is called the new “means
testing” of debtors. (See this PAGE for more on this).
Q22: What is the automatic stay?
A: filing of a bankruptcy petition automatically “stays” (stops) most actions, including collections, against the debtor
or the debtor's property. It is called "automatic" because the stay begins automatically at the time the bankruptcy
case is filed with the Clerk's Office. Once the stay is in place, creditors are prohibited from taking certain actions
against a debtor.
Q23: Will the ‘automatic stay’ of filling for bankruptcy stop creditors from calling my
home and work?
A: It will certainly help. After you file your petition with the court, the Clerk's Office will normally send a written notice
of your bankruptcy filing to all of the creditors you listed on your creditor mailing list matrix. Although this notice goes
out within one to two days of filing, it may usually take up to a week or longer for creditors to receive this notice
because of mail time. Hence, the general recommendation is, if a creditor calls immediately after you have filed your
petition, simply tell them you have filed for bankruptcy and that they will receive notice of this in the mail. Now, note
that if the creditor was not among those listed on your mailing matrix, you should make sure to update your matrix
with the Clerk's Office so that future updated notices about your bankruptcy can now be sent to that creditor. It is
important to make sure that you list ALL your creditors on your matrix, because the law says that if a creditor doesn't
get a notice of your bankruptcy, his debt might not be discharged in your bankruptcy.
By law, once a creditor receives that NOTICE of your bankruptcy filing from the court, they may not any further attempt
to collect on a debt from you – at least, unless they follow certain strict procedures, such as filing a motion
(application) with the court for the court to authorize a relief from the stay, contingent upon the court granting such
motion. If a creditor were to continue to try to collect a debt from you after being notified of your bankruptcy or
bankruptcy filing, you should contact the court clerk for information on some action or court sanction to take against
that creditor. Further more, after you file your bankruptcy petition, the court will give you your Case Number that
identifies your case as having been officially filed. What you do is, you can give that number to any bill collector who
calls and ask them not to call any more, and that will (should) be their last call – or they’ll be defying a court order and
risking a possible “contempt of court” sanction against them by the court, should they continue.
Q24: Where can I obtain the required bankruptcy forms?
A: You can purchase bankruptcy forms from most legal stationery stores and some bookstores. The forms may also
usually be purchased from the local Bankruptcy Clerk's Office for a minimal charge, or they may be downloaded and
printed from the Bankruptcy Court Website. Payment for anything at the Bankruptcy Clerk's Office – for filing fees,
purchase of forms, etc - is usually required to be made in money order; and personal checks are not accepted.
Q 25: In what court and how do I file for Bankruptcy?
A: The bankruptcy court is a Federal (not State) court, and so has district or divisional offices in each state covering
the area of the court’s jurisdiction. You may file your bankruptcy petition at these locations. The business hours, street
addresses and phone numbers for these court sites are listed on their web sites. THE EASIEST WAY: Visit online this
website for the bankruptcy courts – http://www.uscourts.gov/courtlinks. Click “Bankruptcy Court” on the left side to
select that court as the one handling the matter you’re interested in accessing. On the right side, check off “Area
Code” and/or “Zip Code.” Enter, for example, your zip code (or the name of the appropriate city and state) where you’
re located. That will take you directly to the Court Clerk’s office for the local court in which you are to file your
bankruptcy. Get the Court Clerk’s phone# and their website address and contact them for necessary information,
direction, and instruction.
You should check with them about the location's business hours have (among many other things) before trying to file
your paperwork with the office. You may, if you prefer, also mail your completed paperwork to the Bankruptcy Clerk's
Office in your district as long as you also mail payment for the required filing fee. If you do, BE ABSOLUTELY SURE TO
SEND IT BY CERTIFIED MAIL, WITH RETURN RECEIPT REQUESTED. Furthermore, note that it is generally advisable,
however, to ALWAYS file your papers with the court by personally going to the court and submitting your papers
directly to the court clerk and getting an official receipt and record of filing for your papers. Be aware that paying at
the Bankruptcy Clerk's Office – for filing fees, purchase of forms, etc - is usually required to be made in money order;
and personal checks are NOT accepted.
Q 26A: What Is Emergency Filing of Bankruptcy, and How Do You Make Emergency Filing?
A: Under the bankruptcy procedures, if you are in a situation where it's urgent and speed is essential, and you need
to stop some or all of your creditors QUICKLY, you can do so. You do so simply by making an emergency filing. Say,
for example, you face a foreclosure of your house and your house is scheduled to be sold in a few days, or that your
car is about to be repossessed. In such a case, by filing an emergency bankruptcy petition with the court, this will
stop the foreclosure or repossession (and other collection efforts against you) cold -- quickly.
Here, you don't have to file the full or complete set of papers required for the bankruptcy petition. But rather, you just
prepare and file these three basic forms with the court : 1) the Voluntary Petition form (including, also, the
Certificate of Proof of Completion of Credit Counseling); 2) Creditors' Mailing Matrix (which lists the names,
addresses, and zip codes of your creditors so that they can be notified of your filing), and 3) a Statement of Your
Social Security Number (Form 21), which provides your complete SS#. Upon your filing this emergency petition with
the bankruptcy court clerk, the "automatic stay" immediately comes into effect, and this stops collection efforts and
lawsuits against you. EXCEPT that you MUST be sure to file the remainder of the forms within (no later than) 15 days
thereafter.
IMPORTANT: Upon filing the Emergency Petition with the Court Clerk's office, while there request the Clerk to issue
you something called a Certificate of Bankruptcy Filing. Be sure to send a copy of that (use Certified Mail, return
receipt requested) to the creditors who're foreclosing on or seizing your property, and/or otherwise promptly present
that document to their immediate attention.
NOTE: Note that one of the very FIRST thing you ought to have done before you may do this, is attend the Credit
Counseling session requirement -- a formal consultation on credit matters with counselors at one of the approved non-
profit credit counseling agencies. TIME: OK as long this is done WITHIN 180 days immediately before your filing of the
petition. It's about a 30-minute affair, and can be done even the same day just before you file, and may be done
either in person, or by phone one-on-one, or by group teleconference. (They'll give you a Certificate of Completion of
Counseling upon completing that session -- the Certificate you attach to the papers to be filed with the court clerk's
office). Get the list of the Counseling agency for your area from: U.S. Trustee, www.usdoj.gov/ust. Click on "credit
counseling and debtor education."
Q 26B: What if I have an emergency filing after hours?
A: To file an emergency petition with the Clerk AFTER regular business hours, a pre-approved appointment is usually
required to be arranged. Contact the Clerk of Court's Office.
Q27: How many copies of the bankruptcy papers do I need to file at the court?
NOTE: We’re using one example that’s used by one Bankruptcy District in the United States. But note that EACH court
in each district is different and may require a completely different type or set of the forms, order of listing for the
forms, etc. So, always check with your local court of filing’s court clerk’s office; just find out what it specifically wants,
and simply supply it with that, accordingly. It’s that simple!
A: Chapter 7: Original documents plus 1 complete set of copies (petition, schedules and statements, matrix & any
attachments).
Chapter 13: Original documents plus 1 complete set of copies (petition, schedules and statements, matrix, plan & any
attachments)
Chapter 11: Original + 3 complete copies (petition, all schedules and statements, matrix & attachments).
For all chapters: the matrix must be filed on a 3.5" floppy diskette. If you are unable to provide your list of creditors on
a disk, your matrix must be typed on letter sized (8 1/2 by 11 inch) white paper in a single column down the page.
Please see the local rules, available on our web site, for more specifics regarding the matrix.
If you would like to have a conformed (file stamped) copy of bankruptcy documents that you file with the Clerk's Office,
you must make one extra copy of these documents for yourself. The Clerk will file stamp the extra copies and return
them to you. If you are mailing your documents to the Clerk's Office, you must provide a self addressed, stamped
envelope with enough postage to cover return postage for these documents.
Q28: Do I need to send a copy of the petition to anyone else?
A: The Clerk's Office will normally notify all the creditors you have listed on your creditor matrix of your bankruptcy
filing by mailing a written notice to them. For this reason, it is very important that you provide complete addresses,
including city, state and zip code, for each creditor on your creditor matrix, and further, that you make sure to include
ALL your creditors among the creditors listed in your bankruptcy petition.
If you feel a more immediate notice of your bankruptcy is necessary to be given to a particular creditor, it is your
responsibility to determine what type of notice is appropriate and give that notice to the creditor, such as writing
them a certified letter with the particulars of the bankruptcy filing, or a copy of the bankruptcy petition, included, and
the like.
Q29: What do you mean by ‘Matrix'?
A: A creditor matrix is a list of the names and current addresses of all creditors and other parties that should have an
official notice that a bankruptcy case was filed. It is prepared by a debtor and must be filed at the same time the
bankruptcy petition is filed. As a debtor, it is your responsibility to ensure you have listed, the current, valid addresses
of each and ALL of your creditors. If a mail that is sent by you or the Clerk's Office regarding your bankruptcy comes
back as "undeliverable," it is your responsibility to try to find a good address for the creditor and to promptly notify
the Clerk's Office of the good address. Additionally, if you obtain a different address for a creditor after you file your
bankruptcy, you must, again, notify the Clerk's Office in writing of the new address.
It is possible for creditors and other parties to add themselves to the matrix as well. Names may be added or changed
when a creditor files a proof of claim in your bankruptcy case or files a notice of change of address. If there are any
attorneys who appear in your case on behalf of a creditor, they should also get added to the matrix
.
Q30: What are the duties of the trustee?
A: Basically, the job of the case Trustee (he’s different from the U.S. Trustee) is to manage the individual debtors
bankruptcy cases; he keeps tab of the cases and if he finds cases that have assets with some equity left in them, he
tries to liquidate them (sell or reduce them to cash) and use the proceeds to pay off the creditors, particularly the
secured creditors. In rare bankruptcy cases where he finds there’s money still left after the secured creditors are paid,
the trustee will get to pay the unsecured creditors as well, based on the order or their “priority.” There’s yet a third
scenario that the trustee may often face regarding what he does with the debtor’s property – “abandonment” of
property. This involves a situation when the trustee evaluates the asset of a debtor, usually the secured assets, and
makes the calculation that even if he were to liquidate the assets, the liquidation value or return on the assets simply
will not amount to much as to be able to pay off the secured creditors. And so, the trustee simply "abandons" the
assets and lets the debtor keep them.
Q31: I thought filing for Chapter 13 bankruptcy would have stopped the foreclosure of my home? Can the
creditors still take my house?
A: Yes, it can – but only up to a point in time. True, when you file for bankruptcy, you immediately get the court
protection called an "automatic stay" – meaning a “stay” (stop) of any collection attempts or court actions against you
for now, such as foreclosure of the home or attempts to make a sheriff's sales. However, a creditor, such as the
mortgage holder, can still go into court and file with the court a “motion” (a request) asking that the bankruptcy judge
grant him a "relief from stay," on the automatic stay. And, Based on the basis and grounds presented to the judge
for the request, if the judge finds it the right and proper thing to do, the judge may grant the creditor’s request
thereby allowing the creditor to go ahead and foreclose on the property, even with the debtor’s bankruptcy filing.
Q31B: If you file for bankruptcy and one of the companies or people you owe file a claim or an objection against
you, how would you know?
A. Assuming, of course, that you have, as you ought to have done, listed the creditor (the company or individual you
owe the money to) in your bankruptcy petition or case, you will receive a written notice in the mail from the Clerk's
Office advising you that the creditor has filed a Claim and/or “Proof of Claim” with the court asking that it be paid
(along with all the other creditors you have) out of any available assets you have, if any. If the creditor is filing an
objection against your debt being discharged or cancelled – and, actually, this is something that doesn’t happen too
often in personal, no-asset bankruptcy cases - the Clerk’s notice you’ll receive will indicate that the creditor had filed a
COMPLAINT, and the notice will also include a copy of the complaint, along with a copy of Summons and Notice of Trial,
asking for you to respond to the creditor’s objection or complaint (if at all you wish to contest that complaint) within a
certain specified date.
Q31C: How does a creditor I listed in my bankruptcy, file to be relieved from the Automatic Stay?
A: It is true that once a debtor files for bankruptcy, creditors generally can't continue court proceedings to collect on
debt against him. [11 U.S.C. § 362(a)]. There are certain exceptions, however. In order for a creditor to continue a
court or collection proceeding against the debtor whose case has been stayed because of his (or her) filing for
bankruptcy, the creditor must obtain an order from the Bankruptcy Court granting relief from the stay.
In order to obtain relief from stay, the creditor would have to file documents known as “Motion for Relief from Stay,”
along with a “Notice of Motion for Relief From Stay.” The originals of these two documents will need to be filed with
the Bankruptcy Court, along with a filing fee. [This fee will not be required if the creditor who is moving this motion for
relief is seeking to collect child support, and has also filed Official Form B-281 with the court]. As the debtor, you are
to receive copies of both documents, they are to be “served” on (delivered to) you (and other creditors and parties in
interest in the case) by the creditor who is seeking the motion. A stipulation or agreement for relief from stay is
treated the same as a motion for relief from stay, and must also be noticed to the appropriate parties in the case.
The legal authority for obtaining relief from stay can be found in section 362 of the Bankruptcy Code [11 U.S.C. § 362
(d)]. In addition, Alaska Local Bankruptcy Rule 4001-1 (the State we're using here just to illustrate the principle)
describes the procedure for filing and noticing a motion for relief from stay. Some Local Bankruptcy forms (e.g., the
Alaska Local Bankruptcy Forms 1, 2 and 3) can also be used to serve as forms for a motion for relief from stay and
notice of motion for relief from stay.
After the motion or formal request for relief from stay has been properly noticed and served on (delivered to) the
debtor, if the debtor wishes to object to its being granted by the court, he/she must hurry and do so in writing within
the deadline specified for objections. The Court will then set a date for a hearing on that, and hold the hearing before
he may decide on or enter an order granting the relief. Or, if no objections to the motion have been timely filed, the
moving creditor must file a Certificate of No Objection with the court, along with a proposed order granting the motion
Q32: What are those reasons for which you say a judge could allow a creditor to foreclose on my home even
when I've filed bankruptcy?
A: SAY, BECAUSE:
1. You filed a chapter 7 when you owe a couple of months worth of unpaid mortgage bills and Chapter 7 which, unlike
Chapter 13, does not usually provide for a way of catching up with arrears on missed payments.
2. You filled for Chapter 13 but fail to work up or to file a payment plan that the court will find viable or confirmable, or
to provide the necessary documents on time
3. Your income is calculated to be insufficient to fund a Chapter 13 payment plan within the court's guidelines.
4. The value of the home is rapidly eroding.
5. You default seriously, over several months, on the monthly payments you’re required to make in Chapter 13
payment you made with the court.
Q33: Can I change my case from a Chapter 13 to a Chapter 7?
A: Yes, a debtor who meets the requirements can change in either direction – from chapter 13 to chapter 7, or vice
versa. To do so, the debtor, after having filed for chapter 7 or chapter 13, files with the court a what is called a
"motion to convert," requesting that his case be converted from, say, its pre-existing Chapter 13, to Chapter 7, and if
granted, the conversation is made. The trustee can also request a conversion.
True, conversion could be made from either chapter to the other. However, the direction seems to go more in from
Chapter 13 to Chapter 7 as debtors in Chapter 13 bankruptcy frequently find themselves unable to keep up with the
scheduled payments (due to loss of job, illness, etc) and must often file for conversion from their present Chapter 13
to chapter 7 where they would not have to make such payments. If the case trustee were to thinks, for example, that
a debtor’s bankruptcy estate probably has money such that it might be able to pay some unsecured creditors some
thing, the trustee may, as well, possibly make a motion to the court asking to convert the debtor from chapter 7 to a
chapter 13.
Q34: Does whether my spouse file for bankruptcy separately or jointly make any real difference for us? What
are the factors we need to consider in making a choice?
A: Yes, whether you file alone or together will have some impact of sorts. For example, filing together will eliminate
the SEPARATE debts of you and your spouse and all the JOINTLY-HELD marital debts. Filing alone will wipe out the
filing spouse's separate debts and his/her share of the joint debts, but leave the other spouse who did not file for
bankruptcy still liable for his or her own share of the joint debts.
Some of the factors to consider in deciding whether to file separately OR jointly, include:
1. If only one spouse owns all or most of the debts, then only that person should file;
2. If both spouses own the debt, and want to file a Chapter 7, then both should file;
3. If the primary interest of the parties in wanting to file for bankruptcy is to stop a foreclosure, only one partner, the
one whose name is on the title to the home (or both, if both have their names on the title), need to file a Chapter 13.
4. If all the debts were incurred BEFORE the parties were married, there is no point in having you both file.
5. Are you legally separated, have already divided your property and taken care of your major financial issues? Your
best option may be to have the spouses file separately.
6. Whether you should file a joint petition or a single one will also depend, in part, on the type of property involved,
the amount of community debt involved, and how the property is held (e.g., is it held as community property, in joint
tenancy, or in an estate-by-the-entirety form, etc).
Community property method and the common law (also called "equitable distribution") property method, are the two
main types of martial property ownership. The vast majority of states apply the common law or equitable distribution
rules; nine states apply the community property rules. If you live in a COMMON LAW property state, the “bankruptcy
estate” of your spouse (meaning all the property considered by the case trustee as being owned by her for purposes
of the bankruptcy), will include his/her separate property and half of the jointly-held marital property. So, the non-
bankrupt spouse will not have to worry about the effects of the bankruptcy on his or her separate property.
NOTE: Note that in such common law jurisdictions the bankruptcy court ordinarily scrutinizes this matter very closely
to see if the other spouse who is not filing for bankruptcy is perhaps merely holding the common law marital property
for, or has received it from, the bankruptcy-filing spouse within one year of filing for bankruptcy. And if this is found to
be so, such transaction may be considered fraudulent, and the property may be ordered turned over to the
bankruptcy trustee.
7. If you live in community property jurisdiction, all the community property you and your spouse own jointly is part of
the bankruptcy estate, regardless whether you join in the bankruptcy filing. (In community property states, spouses
own all property earned or received DURING the marriage equally, splitting it 50-50). The SEPARATE property of the
parties - property each owned before the marriage - is not effected by the bankruptcy filing spouse's bankruptcy.
Property held separately by the bankruptcy filing spouse will be used, first, to settle debt, and the non-exempt
community property will then be used.
Q35: If only my spouse files, what am I liable for and what happens to my credit?
A: As long as there was no joint debt in which you are involved, either directly or as a co-signer, then your credit will
not generally be affected. If, however, there was joint debt between the parties, even if only one spouse filed for
bankruptcy, the other spouse who did not file may still be help responsible for the entire debt. See Item …above for
more on this.
Q36: Can I file without my family, friends, neighbors, or spouse, knowing about it?
A: Yes! It’s possible. See Item # 12,
Q37: Is going Bankrupt a bad thing to do?
A: No. See, for just an example, this page of this Web Siite.
away. In addition to providing relief from debts and obligations for individuals, hundreds of such long established blue
chip companies as Dow Corning, Montgomery Ward, Penn Central and Texaco have used the provisions of the
bankruptcy laws.
Q38: Are there any bad or negative sides to declaring bankruptcy?
A: Certainly. Let us be absolutely clear here about one thing: filing or declaring bankruptcy should NEVER be taken
lightly by any debtor. NEVER! It’s a most serious financial and social matter – both for the creditors who have to forgo
their money or obligations legitimately owed to them because a debtor has to go bankrupt, and for the debtor himself
or herself who has to go through the stigma and the feeling of inadequacy, depression and failure, for being unable to
meet one’s financial obligations that are associated with bankruptcy.
Hence, bankruptcy is not something that any debtor should just enter into lightly, irresponsibly, or at the drop of a
hat, except as the very last resort because there is absolutely no other viable alternative or way out readily available
to him or her. Aside from that, bankruptcy has a few real negative aspects for the bankrupt debtor - your credit
records are clearly negatively affected by declaring bankruptcy, your overall personal finances, even if not usually as
seriously as is often advertised, will be negatively impacted by it, and may, atimes, make it more difficult for you to
obtain new credit for a given period of time, etc.
Q39: With Bankruptcy, Will I Ever Rebuild My Credit?
A: First of all, the fact of the matter is that in the dire, near-hopeless financial condition you are in already, right now,
that brought you to this point where you have to even seriously contemplate filing for bankruptcy as a live option, you
never had any “credit” to speak of, in the first place. When lenders or other creditors look at your current financial
condition right this minute in terms of considering you to decide on whether to grant you NEW credit, what do you
honestly think? Do you think they’ll ever dream of granting you any credit – that is, other than the one the had
already granted you previously, which they’re just about all probably right now that you’re in such sorry financial state
that you haven’t been paying up?
The point is that your “credit,” given your credit and financial condition right now, is long DEAD, and you don’t have
any right now to protect or worry about, and whether you file for bankruptcy has nothing to do with it. So, you might
as well go ahead and try to free yourself, first, from the debt burden you carry with you, and after you’re free from
that, you can begin to worry about, plan, and work on, building your credit anew – gradually. Bottom line: If you don’t
try to pick yourself up, and get yourself freed quickly from the debt burden that has you weighed down right now, you
may NEVER build or have new credit – EVER. But if you do, you’ve at least got a fair chance of doing so some time
down the road!
Q40: How long will it take for me to build or rebuild my credit?
A: Actually, according to credit counselors and financial experts, not really that long. All it’ll take is for you to have a
stead job with a record of decent earnings and staying current and timely on your ordinary bills (you gas, electricity,
cable, phone, etc., and before you know it, you’d have credit card companies sending you solicitations for credit. And if
you begin to show a record of timely payments on one credit card or other, it wouldn't take long for the word to go
around within the credit industry, and before you know it, your ability to get credit is fully restored with most creditors
out that.
Q41: Which type of personal bankruptcy is the least burdensome for the debtor – Chapter 7, 11, or 13?
A: Chapter 7. Generally, that’s the least expensive from the debtor’s point of view because, first of all, the debtor
ordinarily does not have to pay back or off any debts, and he can just walk away clean and clear – totally free from
the debt burden, and ready to begin his financial life afresh without that burden or worry. That’s why Chapter 7 has
traditionally been called “straight” bankruptcy, or “pure” bankruptcy. The next least expensive or burdensome for the
debtor, is of course Chapter 13. With Chapter 13, the debtor generally has to repay ONLY about 10 cents or so on the
dollar of what is owed. Chapter 11 is the most taxing of the three for a debtor.
Q42A: Assuming I've got to file or I'm filing Chapter 7 bankruptcy, what are the options do I have regarding any
SECURED property I have?
A: Basically, you have three main options:
Q42B: Can I pick and choose which assets I may put into a personal bankruptcy?
A: No. That is strictly forbidden by the bankruptcy code. The rule is this: You MUST list ALL assets you own in the asset
schedules you declare in your bankruptcy filing. After filing, then you may make a choice as to which ones could be
picked as exempt property under the provisions of your state (or the Federal listing, where that’s allowable for that
state).
Q43: Can I pick and choose which debts in my bankruptcy filing I may pay or not pay?
A: No. Exactly the same answer as in Item…immediately above, applies here too.
Q44: Just what is “reaffirming” a debt or obligation in bankruptcy all about?
A: It literally means a debt or obligation to which you RECOMMIT to repay, even if and after, you file for bankruptcy or
get discharged in bankruptcy. For instance, let’s say you have a vehicle (that the kind of property called SECURED
PROPERTY) for which you owe on (a SECURED DEBT), and you wish to keep this vehicle and not have it repossessed
by your creditor because you need the vehicle to keep going to your job. So, what you do in that instance would be to
agree with the creditor that you’ll “reaffirm” the debt on the vehicle (i.e., make and sign a new contract with him on it)
whereby you enter into a new, special agreement that you’ll keep making the payments on the vehicle and retain it,
meaning that irrespective of whether you file for bankruptcy and get discharge from other debts you owe to other
creditors, the automobile creditor will get paid by you. That’s what’s called “reaffirmation agreement.”
In other words, it is a situation where you'll continue (by your agreement) to make regular payments on the secured
property in question, and in exchange, your creditor will let you keep the property and not seize or repossess it - as
long as you keep making the payments. Should you fall behind on the payments, however, the creditor can sue you
for what you owe. NOTE: Note that the reaffirmed debt will NOT be discharged in bankruptcy, and they are strictly
voluntary.
Another general situation when a debtor himself may readily want to reaffirm a debt, would be in a situation where
there is a co-signer or guarantor to the debt (such as a family member, friend or employer) that the debtor does not
wish to leave saddled with the debt, and so the debtor elects to enter into a reaffirmation arrangement with the
debtor to pay up the creditor any way, in spite of his declaring bankruptcy.
Q45: If I can’t pick and choose which debts or which assets I can put in bankruptcy, how come I can pick and
choose which ones I can “affirm”? What’s the difference?
A: With respect to the affirming of certain obligations, this applies ONLY to debts (and the assets or property that
underlie or secure them) that are SECURED debts and property, but not to unsecured obligations (such as credit card
bills, medical bills, and the like). A debtor can affirm these kinds of obligations because that’s part of the rights that
the contract the debtor signed when he or she took on the loan grants him or her. Secondly, note that when you
affirm a debt, you do it openly and officially, so the court is fully aware of it and approves of it. But when you ‘pick and
choose,’ say, one credit card over another to keep and continue paying on, you do it generally on your own without
reporting or reflecting that in the bankruptcy papers to the court.
Q46A: What is redemption of property?
A: Here, you (the debtor on a secured property) agree to make one lump-sum payment to the creditor on the secured
property's fair market value in order to keep the property - regardless of the amount of money you actually owe on it.
Meaning that any amount you actually owe on it in excess of the property's current value, could be discharged as part
of your bankruptcy.
Q46B: What is surrender of property?
A: In this case, if, making regular payments on a secured property you have, say, a card, or having to cough up a lump sum amount, are
beyond you as you would have to do in the case or reaffirmation of the debt or redeeming it, are beyond your means, then this would be
the third option open to you - you simply surrender the property to the creditor. Any debt you have on the property may be dischargeable by
the court in bankruptcy.
Q47A: Will I have to Before a Judge and be ‘Cross Examined’ for the Bankruptcy case?
A: For the most part, NO, unless your case is a Chapter 13 case. For some 95% or more of the debtors who file for
personal bankruptcy under Chapter 7, their cases fall under the category where they will NOT ever see a judge or go
before a judge at any time in the whole process of their bankruptcy. So, the chances if involved in Chapter 7 case, will
be that you will not have to even see the inside of a judge’s courtroom while you get discharged in bankruptcy. The
only thing you’ll have to do, though, is that you will attend a meeting with your case trustee, called the 341 Meeting
or Creditors’ Meeting, in approximately 30 to 40 days after you file for bankruptcy. The meeting lasts for only a few
minutes, or even less sometimes. And after that, assuming everything goes well, you should receive a discharge
notice in the mail advising you that it is all over and that you’ve received your bankruptcy discharge
Q47B: What is a Section 341 Meeting or Meeting of Creditors?
A: The section 341 meeting, also called the MEETING OF CREDITORS or the Creditor's Meeting, is a meeting that the
debtor in the case is required to attend after having filed the bankruptcy petition with the court. The meeting is
conducted by the case Trustee. The most important thing about this Meeting, is simply this: the debtor is required to,
and MUST, appear at this meeting. And he (or she) is to testify, under oath, about his financial condition, assets and
debts. Basically, much of the questions the debtor will be asked, will be about the information he has placed on his
bankruptcy forms and paperwork. Creditors may also attend this meeting and question the debtor, although the
meeting is directed by the trustee assigned to the case, and, generally most of the questions that are asked come
from him. If a debtor fails to attend the meeting, his bankruptcy case will usually be dismissed, unless there’s good
reason supplied the court for that.
After a bankruptcy petition is filed, the debtor should expect to receive notice shortly thereafter by mail from the Court
Clerk’s Office giving the date and time scheduled for the creditor's meeting, as well as notice of what items the debtor
should bring to the meeting for review by the trustee at the meeting (such as proof of identification, bank statements,
tax returns, social security card, etc.).
Q48: What if I am unable to attend the creditor's meeting on the day scheduled?
A: If you are unable to attend the creditor's meeting on the day it is scheduled, you must contact the Case Trustee
(and/or the U.S. Trustee's Office) as soon as possible at the phone number his/her office might have provided you in
the first notice to you, and request that the matter be continued. If you are unable to travel to the town your
meeting is being held in for whatever reason (say, because it’s too distant for you, or for whatever reason), you can
make a written request to appear telephonically at your creditor's meeting. The case Trustee or U.S. Trustee's Office
will determine if your circumstances warrant an appearance by telephone. If you are serving in the Military and will be
out of state, it is often possible to give a power of attorney to your spouse, but you should check with the
Trustee's Office.
Q49: What is the function of the U.S. Trustee and where are they located?
A: The Office of the United States Trustee is an Executive Branch agency that is part of the Department of Justice. It
is responsible for monitoring the administration of bankruptcy cases and detecting bankruptcy fraud where present. It
is also responsible for appointing the panel trustees that directly administer chapter 7 and chapter 13 cases. The
individuals who serve as interim or standing trustees in bankruptcy cases that directly individual bankruptcy cases and
conduct the Creditor’s Meetings and the examination of debtors, are different from the U. S. Trustee. The U. S.
Trustee is the one who appoint these individuals, and also provides support and oversight to debtors who have filed
Chapter 11. The case Trustees are appointed on a rotating basis and come from a list that changes over time.
Q50: How long does it take to go through a bankruptcy or get my discharge?
A: Each case is different, but a general rule of thumb in a Chapter 7 case is that a debtor's discharge will be entered
roughly about 120 to 150 days after the case was filed. The entry of a discharge may take longer if a debtor's
entitlement to the discharge is contested. In Chapter 11 cases, a discharge is obtained when the plan is confirmed
and other requirements of the Bankruptcy Code have been satisfied. In Chapter 12 and 13 cases, a discharge is not
entered until the payment plan has been completed. Chapter 12 and 13 plans generally last from 36 to 60 months (3
to 5 years).
Q51: How long does a bankruptcy stay on my credit report?
A: The general rule is that a bankruptcy generally affects a debtor's credit report for 7 to 10 years. However, this
depends entirely on the individual credit reporting agency. Actually, the Bankruptcy Court has no influence on the type
of information the credit bureaus report, nor how long they keep it in their records. If you are interested in pulling a
credit report for yourself, you should visit this website: www.annualcreditreport.com.
Under a new federal law, you have the right to receive a free copy of your credit report once every 12 months from
each of the three credit reporting agencies. Each agency's report on your credit may contain information from different
creditors. To receive a free annual credit report, you can call or send a written request to:
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
1-877-322-8228
You can also contact the credit reporting agencies directly at:
Equifax - www.equifax.com / 1-800-685-1111
Experian - www.experian.com / 1-888-397-3742
Trans Union - www.transunion.com / 1-800-916-8800
Q51B: How secure is the information I provide?
A: Our Site utilizes the most current forms of security in order to safeguard the information you provide. All forms that
you complete and e-mails that you send and receive are done so through SSL (Secure Socket Layer) technology which
prevents non-authorized parties from accessing, using, or viewing the information.
Q52: I'm filing for bankruptcy but have also discovered a lien against my property. What should I do?
A: A bankruptcy discharge will wipe out most debts, but doesn't affect liens which may exist against your property.
Certain types of liens, such as judgment liens, may be set aside by the Bankruptcy Court under certain circumstances.
In order to set aside a lien, you must file with the Court what is called a "Motion to Avoid Lien" following the
necessary court procedures, and formally “serve” (that is, officially deliver) a notice of that motion upon the creditor
whose lien you are trying to set aside.
Q53: Where can I get more information?
A: Search through various relevant sections of good, informative websites that provide competent, well-researched
legal and/or financial information, such as this Website, the website of your local bankruptcy court, or law and public
libraries, for such information.
CASE FILING & PROCESSING ISSUES,
COURT CLERK OPERATIONS
Q54: What is an “Ex Parte” matter and how do I file for it?
A: "Ex-parte" simply means without notice. An ex parte matter is any “motion” (i.e.’ a request made in writing) for
relief, where the requesting party wants the court to grant the requested relief without giving the normal notice to all
interested parties. Ex parte relief is limited to requests for hearings on shortened time, or to other special
circumstances where there is some justification for not having to give notice to all interested parties.
Q55: Where do I get a copy of the Federal Rules of Bankruptcy Procedure?
A: The Federal Rules of Bankruptcy Procedure are available for review in virtually any Court Clerk's Office location and
at law libraries.
Q56: Where do I get a copy of the Local Rules?
A: The State Local Bankruptcy Rules for a given Bankruptcy Court area are generally widely available within the state.
They are on the local court's web site and also on the other web sites. States also have their own. Local Bankruptcy
Rules, which would be available for review in the local Clerk's Office.
Q57: How do I get a hearing date by the judge on an issue?
A: A Local Bankruptcy Form for your state or jurisdiction for that must be filled out and submitted to the Clerk's Office.
A copy of this form is generally available in the Clerks' Office or may be downloaded from the court web site (under
forms).
Q58: Can I attend a Bankruptcy Court hearing by telephone?
A: Maybe. Actually, attendance of hearings by telephone is a privilege which is generally permitted unless another
party objects. Individuals wishing to appear at a hearing by telephone must notify the In-Court Clerk's Department at
271 at the phone # provided by the Court Clerk’s office for it, usually at least 3 or more days before the hearing to
request to have telephonic attendance. When asking for a telephonic appearance, a party must provide the clerk with
the case number, day and time of hearing, and a contact phone number where the party can be reached.
If you make arrangements to attend a Bankruptcy Court hearing by telephone, you must be available for that hearing
at the phone number you provided to the clerk, at the time the hearing is scheduled. Generally, since it is viewed
merely as a “privilege,” in a telephonic attendance arrangement, the court (the case Trustee) will not usually attempt
to reach you for the hearing more than once, and will not tolerate being put "on hold." It will not usually delay the
proceedings if there is a problem reaching you at the time the hearing is scheduled.
Q59: What if I don't agree with a certain order that is entered by the court and I want to object to it?
A: You may do one of two things: file a “Motion for Reconsideration,” or file a “Notice of Appeal.” Both documents must
usually be filed at least WITHIN 10 calendar days of the date that the court’s order or judgment in question was
entered. In a Notice of Appeal, the objective of party filing the appeal (“the appellant”), is basically to reverse or
change the order or judgment entered by the court. The Notice of Appeal, along with the filing fee that is charged for
that, must be filed WITHIN 10 calendar days of the order or judgment being entered. Appeals are automatically
referred to the Bankruptcy Appellate Panel, or BAP, unless the party filing the appeal also files an election to have the
appeal be heard by the U.S. District Court.
The appellant's election to U.S. District Court, if made by the appealing party, must be a separate document and must
be filed at the same time that the appeal is filed. If the party filing the appeal does not elect to have the appeal heard
by the U.S. District Court, other parties to the appeal (“the appellees”) may do so, but there are time limitations on
when this can be done. More information about appeals can be found in the BAP Litigant's Manual, found on the web
site of most bankruptcy courts.
Note that appeals can be lengthy and complicated procedures. You may want to do it by yourself, with quite a bit of
legal research, if you prefer (you still have a right to do so, if that’s what you want!), or, you may, in this instance
want to seek the advice or assistance of a competent attorney in handling it.
Q60: How do I find out which trustee has been assigned to a bankruptcy case?
A: The face page of the Case Docket document that you’re supposed to receive from the court immediately within a
few days of your filing your bankruptcy petition, contains the name of the trustee in all chapter 7, 12 and 13 cases.
The U.S. Trustee serves as trustee in all chapter 11 cases by default, unless a trustee is specially appointed in a given
case. You may obtain the trustee's name by visiting the Clerk's Office in person, or by telephoning the U.S. Trustee's
office. (The appropriate local office of the U.S. Trustee could be found in the Case Docket document you were sent, or
by visiting their website at: http://www.usdoj.gov). You can also look up a case information over the Internet through
the Public Access to Court Electronic Records (PACER) system, if you have access to PACER.
Q61: Is bankruptcy information public information? Can anyone look at it?
A: The information contained in documents filed in bankruptcy cases are a matter of public record, and can be
reviewed by members of the general public. The documents can be reviewed by members of the public in the Clerk's
Office during regular business hours. For attorneys and creditors who have access to PACER, over the Internet 24
hours a day.
Access to pleadings and papers filed in bankruptcy cases is not restricted unless there is some good basis for
"sealing" information that is contained in them. To have a document filed "Under Seal" or "In Camera," a motion
(formal request in writing) seeking that must be filed with the court clerk, explaining the need to protect the
information in that document from public view.
If you are a debtor, you should be aware that the filing of bankruptcy may affect your credit rating. Several reporting
agencies report bankruptcy information and statistics to the public, and credit reporting agencies also regularly collect
bankruptcy information.
Q62: How do I obtain information about a case?
A: Telephone Access: Basic information, such at the debtor or debtor's name, his attorney's name (if he used one for
the case), the case number, or the name of the trustee, is available on the telephone by calling the VCIS (Voice Case
Information System) designated by the particular local bankruptcy court district. (Inquire about this phone# with the
local Court Clerk’s office). This information is provided free of charge and is available 24 hours a day from any touch
tone phone.
Computer Access: Electronic case summaries, docket information, and viewable copies of all case pleadings filed since
2000, may be retrieved via the Internet through the Public Access to Court Electronic Records system (PACER). This
system requires that you be a registered participant, and there is a fee for access ($0.08 per page, with a page being
approximately 50 lines of text). This charge is limited to the first thirty pages of a document or report screen you are
running, but is charged each time you open a new document. PACER is available by their online address. Just open
your computer browser and type in the address: "https://ecf.akb.uscourts.gov". For PACER registration information,
please call (800) 676-6856.
In Person: Documents may be viewed in person or retrieved for copying at the Clerk's Office. Cases which are one
year old or older, may have been be closed and archived at the Federal Records Center for the area. To determine if a
case has been archived, contact your local Clerk's Office. Records may be obtained directly from the Federal Records
Center, but you will need to obtain certain archiving information from the Clerk's Office prior to requesting information
from the National Records and Archive Administration (NARA), which oversees the Federal Records Center.
Copies of documents: Copies of court records and documents relating to such cases can also be obtained in the
Clerk's Office, or through the PACER system.
Q63: What if the case I'm interested in has been archived?
A: If a case has been archived, there may be some information on the case that is still available through the Clerk's
Office. You should first check to see what information is available there. If the Clerk's Office doesn't have the records
you need, the Clerk will provide you with certain archive information, such as accession record retrieval numbers
(persons who use or have access to PACER may access this information through the ECF system, under the query
search field, case summary information screen), as well as the phone # to call for the archive’s location. With this
access information, you may call the National Archive & Records Administration (NARA) for the region your court is
located in to request the information you need.
For written requests sent to NARA, there is a per document search fee, payable in either a U.S. Postal Service money
order or a cashiers check from a bank. In your request to NARA you must be specific about which documents you
would like copied, and you must include full contact information for yourself. Please contact the court or NARA for the
fee amount.
Alternatively, you can ask the Clerk's Office to have the entire case file returned to the Court Clerk’s office for you to
review. There is a retrieval fee, please contact the clerks office for the correct amount. The file is sent to the Clerk's
Office by NARA and it takes about four weeks for the file to arrive. The Clerk's Office will hold the retrieved case file for
30 days unless a longer period of time is requested. The file can only be reviewed in the Clerk's Office; it cannot be
removed for copying or viewing at another location.
Q64: How do I get certified copies of documents involved in bankruptcy?
A: Generally, you may go to the Court Clerk's office and request certified copies. Be prepared (have some money
available) to pay for a printing fee and a certification fee for each document to be certified. Alternatively, if you know
the documents you are looking for, you can mail a request to the Clerk's Office. (Call the office first and be sure
whether they accept this method). Your request, if you use that method, must identify the documents you want
certified specifically. Be sure to include the case name, case number, and the filing date and the title of the specific
documents which you wish to have certified.
In addition, don’t forget to include your own name, address and daytime contact number, so the Clerk can reach you if
he has any questions about your request.
Also, if you request certified documents by mail, you may often be required to include payment for the Clerk's file
research and certification with your request. The payment must be in the form of either a bank cashiers check or a U.
S. Postal money order made payable to the United States Bankruptcy Court. The fees that apply when requesting a
certified document by mail include: a per document research fee, a certification fee per document, and a per page
photocopy fee. If you are unsure of what the total charge for certifying the document will be, leave the dollar amount
of your check blank, and in the dollar line insert the words "Not to exceed Fifty Dollars." If you are able to come to the
Clerk's Office to request a certified copy, the research fee will not be charged.
Q65: Does the spouse of a married person have to file bankruptcy with his or her spouse?
A: No. The other spouse does not have to, he or she is not legally obligated to join the other one who want to file for
bankruptcy. One spouse, if he or she prefers, can file “sole” bankruptcy as an individual. However, if BOTH spouses
voluntarily agree and wish to file together, they may do so and file “joint” bankruptcy.
Q66: Can I keep some of my credit cards when filing for bankruptcy?
A: True, some debtors hide and can keep one or more of their credit cards in the hope of keeping payments on it so
as to retain the credit card. However, under the law, that’s really generally frowned upon. It’s usually not deemed a
good or wise idea by credit counselors for the debtor who files for bankruptcy to keep some credit cards – and credit
card debts – and keep those debts going after bankruptcy, when the debtor could have just included those debts in
the bankruptcy, and thereby have them, as well, wiped out in bankruptcy. But, it’s your life and your choice. You do
what you want on that.
Q67: What if I committed fraud, would my debts still be discharged in bankruptcy?
A: No! The long history of the bankruptcy system and the series of laws and amendments enacted by Congress to
govern bankruptcy over the years, as well as the rulings of the courts in preservation of the right of bankruptcy, have
shown one consistent objective and intention over those years – namely, maintenance of a basic policy of affording
debt relief only to the "honest but unfortunate debtor," but NOT to debtors whose indebtedness are demonstrated to
be the product of fraud and financial manipulations and dealings.
Consequently, Section 523(a)(2)(A) of the Bankruptcy Code, for example, excepts acts such as the following from
being discharged in bankruptcy: "any debt . . . for money, property, services, or an extension, renewal, or refinancing
of credit, to the extent obtained by . . . false pretenses, a false representation, or actual fraud." 11 U.S.C. § 523(a)(2)
(A).
Q68: Are statutory penalties and punitive damages for fraud dischargeable in bankruptcy?
A: No. Not at all. This is considered to be one of the most serious kinds of debts among all debts and obligations that
are classified as non-dischargeable. Consequently, such indebtedness are not only non dischargeable and must be
paid up by the debtor, but also have serious penalties and financial sanctions attached to them.
Q69: What are your tax obligations if you are filing for bankruptcy?
A: What would be the tax obligations of a debtor would vary, depending on whether the debtor files Chapter 7 or
Chapter 13 bankruptcy. If the bankruptcy filed by the debtor is Chapter 7 bankruptcy, that creates a separate taxable
“bankruptcy estate” – namely, all property owned by or belonging to the debtor before the filing date, and which is
completely separate from the debtor as an individual taxpayer.
Under the law, in such a situation involving Chapter 7 bankruptcy, the trustee is responsible for preparing and filing
such estate’s tax returns (Form 1041) and paying its taxes. However, the individual debtor is responsible for filing
returns (Form 1040) on property that does not belong to the estate, and paying taxes on any income that is
attributable to it. The filing of a Chapter 13 bankruptcy petition, on the other hand, does not create a separate
taxable estate at all for federal tax purposes; the debtor just files the same federal income tax return (Form 1040)
that was filed prior to the bankruptcy petition.
Q70: What happens to my Federal Tax Debts?
A: What would be the tax obligations of such a debtor would vary, depending on whether the debtor files Chapter 7
or Chapter 13 bankruptcy. If the bankruptcy filed by the debtor is Chapter 7, the federal income taxes attributable to
the debtor can be completely eliminated, if all the following conditions are met:
On the other hand, if the bankruptcy filed by the debtor is Chapter 13, the tax liability will be included in the Chapter
13 Payment plan approved for the debtor, and the IRS will simply be paid along with other creditors as part of the
debtor’s repayment plan.
Q71: What is Community Property?
A: There are nine community property states in the United States. They are: Arizona, California, Idaho, Louisiana,
Nevada, New Mexico, Texas, Washington and Wisconsin. The Commonwealth of Puerto Rico is also a community
property jurisdiction.
Generally, the property ownership rule in such states or jurisdictions, is that all property that have been acquired
during the marriage, other than property gotten by gift or inheritance, are deemed COMMUNITY PROPERTY. That is,
that even if one spouse actually earns all the money to acquire such property during the period of the marriage, all
such property is still to be considered to community property, regardless. The general underlying theory which
operate in the property laws of these states, is that both spouses contribute EQUALLY to and in the marriage, that all
property acquired during marriage is the result of the combined efforts of both spouses, and that thus, the spouses
should equally own all community property on a 50-50 basis between the husband and the wife.
Q72: What is "Equitable Distribution"?
A: Most states employ the "equitable distribution" (also called “common law”) principle in distribution of property
between marital partners – i.e., in dividing up marital property in divorce or dissolution of marriage situations. Under
the equitable distribution principle, the basic approach is to take a close look at the financial situation that each
spouse will be in after the termination of the marriage, taking into consideration certain various specified factors, and
then apportion marital property based on such consideration, clearly making equitable distribution more flexible than,
say, community property distribution principle. Factors that are considered in deciding equitable distribution, include,
among others:
Q73: What's the Difference Between Secured and Unsecured Debt?
A: Secured debts are secured by a lien of some type on your property, either by an agreement or involuntarily with a
court judgment or taxes. Unsecured debts are not connected to any type of property. A car loans and mortgages are
examples of secured debts, while credit cards and signature loans are unsecured debts.
Q74: How Long Does a Bankruptcy Stay on My Credit Report?
A: A bankruptcy can stay on your credit report for up to 10 years. Keep in mind: in many cases, filing bankruptcy winds
up improving a person's credit.
Q75: Can I Remove a Bankruptcy from my Credit Report?
A: No. However, you can file an explanation with the credit bureaus briefly describing the cause of your bankruptcy.
Q76A: What is the so-called Means Test, and how do I determine whether I will be allowed to use Chapter 7
bankruptcy?
A: Basically, here's the simple preliminary formula to start with. For a debtor, you simply calculate the monthly income
(gross) of any and all kinds that you made over the 6 months (the whole 6 months period) preceding the month in
which you file (or will file) for bankruptcy - i.e., you will TOTAL up all of that, and divide it by 6. Then see if that figure is
LESS than your state's MEDIAN monthly income for a person in your family size. (For a 1-person household, for
example, for persons resident in New York, the yearly MEDIAN income is $54,397). If that earned monthly income
figure is LESS than the applicable state's monthly median income, then that basically means that you "passed" the
means test, and in that event it's essentially "presumed" that you qualify to file Chapter 7 without much problem or
question.
Information on median income for debtors for each state can be gotten here: www.usdoj.
gov/ust/eo/bapcpa/bci_data/median/_income_table.html
Now, if you're married and filing joint bankruptcy, you should calculate all income for both parties; you should include
all types of income (except for and social security retirement receipts, social security disability insurance or
supplemental security income, temporary assistance for needy families (Welfare), and possibly state unemployment
insurance benefits).
Q76B: NOW, what happens if your income is in EXCESS of your state's median income?
A: In such a case, then you'll really NEED to (you MUST) take the real means test (meaning doing a bunch of
arithmetical calculations dealing with your earnings status), and this test is really the one that will determine whether
it will be "presumed" by the court that your filing for Chapter 7 bankruptcy, if you were to do so, is "abusive" - that is,
that it is fraudulent and therefore would not be permissible by the court.
Q76C: The actual Means Test
A: Now, if (from your calculations above) your monthly income is immediately LESS than your state's monthly median
income, and so you're immediately allowable to file for chapter 7 and do not take or need to take the actual means
test, or, if you're required to take the means test and you took it and passed it, that all mean you're considered NOT
to have enough "disposable income" to be able to afford funding a Chapter 13 Repayment plan to pay back your
creditors anything if one were to be proposed for you. Meaning, that in either case, you've passed the first major
eligibility hurdle you can possibly encounter in being able to file Chapter 7 bankruptcy!
If you're required to take the means test and you took it and FLUNKED it, that means you're considered to have enough "disposable
income" to be able to afford funding a Chapter 13 Repayment plan to pay back your creditors something, if an appropriate plan is crafted
and proposed. Meaning, that this debtor can only file Chapter 13.
CHAPTER 7 bankruptcy or a CHAPTER 13, then you can go right ahead and take advantage of our Afford-Bankruptcy.Com advantage
here to get your bankruptcy filing under way right away - at LOW, LOW, affordable COST that you can readily afford.
Q3: What would be the basic, barest minimum Eligibility Requirement that a Debtor Should Look to Have to File for Chapter 7 or 13
Bankruptcy as a “consumer” debtor?
A: Basically, for Eligibility for a Chapter 7 filing, you’ll need to meet these simple conditions:
(1) You’ll need to be an individual or a human person (or a married couple, if applicable) (as opposed to being a business corporation, or
a Limited Liability Company), or a sole proprietorship of a business; (2) you may NOT be any of the following: a railroad, a domestic or
foreign insurance company, a bank, savings and loan association, a credit union, or a governmental unit; and (3) you have to have been
"domiciled" (had your fixed, permanent home or residence), or your principal place of business or principal assets, in the Federal District
of the state in which you intend to file in, for at least the last 6 months immediately preceding the date of your planned bankruptcy petition
filing, or for longer part of such 6 months than in any other District. {CLICK HERE for further eligibility requirement information details].
Or, For Eligibility Requirements To File Under Chapter 13:
Basically, for a Chapter 13 filing, you’ll need to meet these simple conditions:
(1) You’ll need to be an individual or human person (or a married couple) with a "sufficiently stable regular income" of any sort; and NOT a
partnership, or a trust, estate, corporation or governmental unit, a stockbroker or commodity broker. (In other words, wage earning
individual debtors, or those engaged in business, self-employment, farming, and the like, will generally be eligible; as would, also, also
retired individuals, pensioners, welfare recipients, persons on social security or those who derive their income from investments, etc.)
Persons who operate small 'one man' type of corporations or partnerships for their means of livelihood, will also qualify, except that those
are to file for bankruptcy in their individual, personal capacities on their personal debts.)
(2) The total debts you owe alone (or jointly, if a joint petition by a married couple) must NOT be in excess of $1,010,650 in SECURED
debts, or more than $336,900 in UNSECURED debts as of the date of filing the bankruptcy petition (Note that these figures constantly
change over time with rise in price index, and should be constantly adjusted, accordingly).
(3) You’ll need to meet the same "domicile" or permanent residence requirement as are outlined above for Chapter 7 above. {CLICK
HERE for further eligibility requirement information details].
Q4: I read that there are TWO basic types of personal bankruptcy - something called Chapter 7 and Chapter 13 types. Please explain
them in some little details.
A: In the Chapter 7 type of bankruptcy, the objective of the debtor is simply to obtain the "DISCHARGE" of his/her debts by the Court - that
is, to have them wiped out or cancelled so that he (she) is legally freed ("discharged") from having to pay them. In this type of bankruptcy,
the Court, through a court-appointed "trustee," takes a hold of any major assets the debtor may own, if any (assuming that he/she has
any), and "liquidates" or sells them to pay back the creditors - except for those kinds of assets which, under the law, is designated as
being "exempt" property. (Exempt property are property which may NOT be liquidated or seized in personal bankruptcy from a creditor in
bankruptcy)
The Court then issues an Order of Discharge discharging (i.e., wiping out as forgiven) the debt obligations owed by the debtor. {CLICK
HERE for further eligibility requirement information details].
Chapter 13 type of bankruptcy, on the other hand, is basically a "Debt Adjustment" or "Repayment Plan" arrangement, wherein the debtor
basically works out an arrangement (a "Plan") with the creditors under the supervision of a court-appointed Trustee in which the debtor
offers to repay his debtors over a period of usually 3 or 5 years out of his future earnings, usually on terms more favorable or more
manageable for the debtor. The court then orders an "automatic stay" (i.e., a prohibition) against creditors or collectors making any further
collection efforts, or imposing any late payment or interest charges against the debtor, though it adds on its own "administrative charges"
to the total bill of what you have to repay. Then, through the trustee, the court supervises the debtor's repayment of the Plan amounts over
an extended period of time (usually 3 years, but may extend to up to up to 5 years), and at the completion of that period, if the debtor had
complied with the payment Plan, the debtor is granted a bankruptcy discharge by the court on the debts.
Q5: Which Type of Debtors Generally Go For Chapter 7?
A: Most debtors who file for personal bankruptcy (about 70% of them), file under Chapter 7. This is because the overwhelming majority of
debtors who file personal bankruptcy – some 90 to 95 percent of them, according to various estimates - fall under the so-called "no-
asset" debtor category, that is, debtors who practically have no assets whatsoever that can be seized or liquidated in bankruptcy, in the
first place, and simply want to completely clear themselves of their debts so that they can start off with a "fresh start" in their lives. And
Chapter 7 provides the average debtor exactly that option. Most debtors who file under Chapter 7, file to get rid of debts which are largely
UNSECURED types (i.e., debts having no collateral pledged behind them), or file simply to wipe out most of their debts so they will not
have to worry about them again. As a rule, if your debts are mostly loans or credit cards, medical bills and court judgments, you would
most likely be the type that would go for filing for Chapter 7.
Q6: Which Type of Debtors Generally Go For Chapter 13?
A: Chapter 13 bankruptcy is the second most popular type of personal bankruptcy for debtors. In general, Chapter 13 tends to be usually
used by persons who owe on a major property that is non-exempt, typically a home, and have fallen behind in their mortgage payments
and want to avoid losing their home in foreclosure. A debtor in such a predicament will, for example, be given a chance in a chapter 13 to
catch up on his or her mortgage arrears.
Chapter 13 is better suited to those situations where debtors have some major SECURED type of debts (e.g., a mortgage or an auto
payment), and feel it will most serve their most vital needs if they pay the SECURED debts they owe on such property in order to retain
such property, but need more time than the creditors will allow them to catch up on their payments on such payments. Such will be the
case, for example, where a home owner may have fallen behind on his (her) home mortgage payments, and just wants a legal vehicle
and protection (i.e., bankruptcy) by which to ward off the mortgage bankers so that he can catch up on his past mortgage arrears and have
a chance to retain the vital property.
Q6B: Do I really have a choice in picking whether to file for Chapter 7 or Chapter 13?
A: Actually, barely any choice at all! The fact is that under the current law that’s in operation currently which came into effect in the 2005
changes in the law, debtors ceased having any more real choice or say in which of the two options one may prefer or pick to file. Why?
Because the new (the post-2005) system necessitates that, FIRST, you should take the “means test” to determine first of all whether,
according to the formula of that test, you can make some payments at all on your debt – which means, in effect, whether you qualify to file
ONLY for Chapter 13.
If it is determined, primarily through that test, that you qualify to file under chapter 7, then you may go ahead and file under chapter 7. You
may file Chapter 13 only if you are NOT allowed to file (if you are not qualified for) Chapter 7. Or, in situations where it may be more
necessary or advisable for the debtor to file under this chapter, if you are facing foreclosure and need time to get caught up on your back
payments. As a rule, because a debtor has to make payments in a chapter 13 bankruptcy, most debtors who file Chapter 13 are debtors
who are facing something like a foreclosure of their homes or repossession of their indispensable vehicles, and are behind on their
payments, and see chapter 13 as a vehicle to buy valuable time for them to catch up on their back payments and become current again.
Q7: Can you file for Chapter 7 bankruptcy, if you are a small business corporation or some other business entity?
A: The answer is YES. You certainly can, just as well as an individual does. But you’ll have to file under a slightly different category as a
Chapter 7 business corporation debtor.
Q8: Does the Constitution say, or is there any Law that says, that only
Attorneys Can or Should Do Bankruptcy for a Debtor?
A: Actually, absolutely NONE! Zelch! ZERO. Simply none whatsoever
anywhere. Defy anyone to tell – to PROVE it – to you otherwise! That’s
just one of the many unfortunate mythologies that the powerful bankruptcy
lawyers and bar, have created and tried to foster among the general
population around the bankruptcy issue for nothing other than their own
narrow financial interests. (See this PAGE for more on this).
Q9: But isn’t Bankruptcy Supposed to be Something that Only Lawyers
Can Do, According to Many Bankruptcy Lawyers I’ve Heard from?
Because it’s supposed to Be too “complex” for Ordinary Mortals to Do?
A: Actually, no. Even many of their lawyer colleagues who are objective and
unbiased about it, openly admit and confess that. But just one thing: if it’s
supposed to be so “complex” that non-lawyers CAN’T do it, how come over
50 percent of the bankruptcy filers who filed for bankruptcy in several
jurisdictions across America (New York, California, Arizona, etc) in the
pre-2005 new law, were debtors who filed by themselves – non-lawyers?
And how come that, even now, in this post-2005 new law era, some 20-30
percent of the bankruptcy filers in a growing number of jurisdictions, are
non-lawyers? (See this PAGE for more on this).
Q10: Are there any situations when a debtor should Legitimately
consider using an attorney for his/her bankruptcy?
A: Yes. Sure, under law, you (any debtor or citizen whosoever) has an absolute legal right to file for bankruptcy without an attorney, if that’s
what he or she prefers. The plain reality (if the simple truth be told!), is that for most people in most bankruptcy cases, filing for bankruptcy
is just about preparing tons and tons of pages of simple fill-in paperwork, and nothing more. Lots and lots of simple paperwork that,
nevertheless, even many experts (the objective ones who are not just primarily interested in protecting their livelihood and personal
incomes, including many lawyers themselves) say, have really more to do with accounting and bookkeeping, than with “law.”
Nonetheless, if you own a business, or litigation and legal contest is involved in your bankruptcy case, or your bankruptcy case has an
above-average or complicated financial or investment situation, it will clearly be wise, prudent, proper and advisable in such a situation,
for you to get advice from an attorney in your bankruptcy case, or, before you may have your papers prepared for you by Afford-Bankruptcy
or any other competent legal documents preparers.
The bottom line: Clearly, there are many instances when the issues involved in a particular, specific bankruptcy case may, in fact, be quite
complex that it will be absolutely necessary and fitting in that case to use the services of a competent, experienced lawyer. Say, in
situations, for example, where litigation is required, or where the creditors are putting up a court fight and stiff objection against the
discharge of a debtor’s debt, and the like. But, the fact of the matter is that for the vast majority of the personal bankruptcy cases today, that’
s not what is involved – they’re usually “zero asset” cases with no property to seize or liquidate, no contest or even appearance, by the
creditors. See this PAGE for more on this.
Q11: Who deals with my creditors and the bill collectors When I’m involved in bankruptcy?
A: First, it depends on the kind of debts a debtor has, and what bankruptcy he (or she) files. If the debtor has a SECURED kind of debt
(say, an auto payment or a mortgage) that he wants to keep paying upon because he needs the underlying property to make it, then he
can simply continue to make the payments on it as usual (would probably just “reaffirm” that debt), and he’s got nothing to worry about
since he’ll retain the property. As for other creditors of the debtor who have UNSECURED kinds of claims or debts with the debtor, the
debtor really don’t have to “deal” with them that much; much of such debts are discharges (wiped out) in bankruptcy and the debtor would
not have to pay them, and any direct “dealings” that will be required to be done with the creditors during the bankruptcy process, will really
have to be done by the bankruptcy court and the trustee, and not by the debtor.
Q12: Will my employer and landlord find out about my bankruptcy? And CanI be fired for filing for bankruptcy?
A: They might find out. But so what – unless, as in the case of your landlord, for example, you continue to owe him rents after you’ve filed
for bankruptcy, in which case you may then possibly face an eviction for your continued non-payment of rent. Bankruptcy is public record,
but the court does not directly notify your employer or landlord (unless, of course, they’re among your creditors you listed in the bankruptcy
petition papers). But the bottom line is that, by law you cannot be fired or in any other way discriminated against by such persons (or any
others) simply for the reason that you filed bankruptcy. That’s strictly against the law!
Q13: Can I go to jail if I file bankruptcy or don't pay my debts?
A: No. Not at all! Prominent Americans have filed for bankruptcy over the years and centuries, from Governors to mayors and millionaires
and movie stars. Have you ever heard of any one of them being put in jail just because they did that? Now, just this past year alone in
2008, OVER one million Americans (the actual figure could actually be far more than that since many of those involved marital couples!)
filed for bankruptcy. How many of those OVER 1,064,000 Americans did you hear went to jail just for doing that? ZERO! No, remember,
filing for bankruptcy is a perfectly LEGAL thing to do. A perfectly CONSTITUTIONAL thing. So, how and why would you be put in jail just for
doing something perfectly LEGAL and CONTSTITUTIONAL? Bottom line: if you are an HONEST debtor who honestly lists your debts and
liabilities and honestly files for bankruptcy, you’ve got nothing to worry about, about going to jail for filing for bankruptcy. Absolutely nothing.
Look, CLOSE TO 1,OOO,000 HARD-WORKING, PREDOMINANTLY HONEST AMERICANS LIKE YOU FILE FOR BANKRUPTCY EVERY
SINGLE YEAR, these days! That's the "new reality" in America today! And, you know what? These people are only just beginning these
days, only this lately, to catch up with such big, giant, (once) super rich corporations in American's history as Johns Manville, Continental
Airlines, and others, and once ultra wealthy individuals, such as former Texas governor John Connally and rock star James Taylor, in
using the Constitution to get their legal rights! That's what this dramatic growth in consumer debt and consumer bankruptcy, in recent
years, have been all about - the almost tripling in personal bankruptcy since the late 1970s!
So, don't worry, fella, you're NOT, and are not likely to be, nearly alone these days, if you opt to file for bankruptcy because you can't pay
your debts (providing you're an honest debtor who honestly can't really pay your debts).
Q14: What legal Reliefs or Protections Do You Get From Filing Bankruptcy?
A: For all practical purposes, typically, bankruptcy (Chapter 7) will "discharge" (i.e., it will wipe out and relieve you of) almost all debts or
financial obligations that you have (all except for a few debts which are of the so-called "non-dischargeable" type). Typically, bye and large
when you secure bankruptcy, it means for you that you are now freed of all (or just about all) of your debts, and are now at liberty to make a
"fresh start" in life unburdened by past debts. You become, in effect, like a person whose death sentence is commuted by a Governor or
the President - a person granted a whole "new lease on life"! See this PAGE for more on this.
Q15: What Types of debts are Dischargeable (Cancelled) Through Bankruptcy?
A: Bankruptcy, typically meaning Chapter 7, can eliminate just about most, if not all, of the major kinds of debts that
most debtors usually carry or wrestle with the most, such as the following types of debts:
- Judgments of any size or amounts
- Unpaid current rents and past rents
- All collection accounts
- Attorneys fees
- Hospital bills .
- Taxes (certain kinds)
- Doctor bills
- Evictions & foreclosures
- All credit cards debts of whatever amounts
- Wage garnishments
- Store cards; virtually any and every type of
- Phone & cable bills
- Pending lawsuits
- Student loans (if they meet certain qualifications)
- Deficiency judgments and balances on auto
- Electric, gas & other utility bills, past and present
- Deficiency judgments and balances on mortgage
- Secured and unsecured types of debts
- Outstanding personal loans
- Prescription bills
- Outstanding signature loans
- Auto loans & auto lease loans
Q16: What Types of Debts are NOT Dischargeable through Bankruptcy?
A: The following are some of the principal types of Non-dischargeable debts in bankruptcy:
Liens, such as mortgages and security interests in cars as are some other types of obligations including: Federal,
State and local tax claims (subject to specific time rules)
1. Debts owed for excise or custom duties (import duties, sales taxes, estate and gift taxes, gasoline taxes, etc) due
within the last 3 years before the date of filing the bankruptcy petition.
2. Debts for taxes whose last due date for filing the returns occurred within 3 years from the date when the
bankruptcy petition is filed (subject to specific time rules)
3. Income taxes which might have been due
4. Spousal and Child Support
5. Most types of student loans, etc. (See this PAGE for more on this).
In general:
- Secured debts
- Fines and penalties imposed by government agencies
- Debts incurred due to false statements made with the intent
- Fraud committed in a fiduciary capacity, such as embezzlement
- Punitive damage claims for "willful and malicious" acts
- Debts not list on the forms filed with the Court
- Drunk driving obligations
A non-dischargeable debt survives the bankruptcy proceeding, meaning
that the debtor still has the obligation to pay this debt and the creditor retains every right to collect.
Q17. Is there a court fee to file a bankruptcy case? Can it be waived?
A: There is a fee to file a bankruptcy petition. It varies depending on which chapter of bankruptcy (chapter 7, 11, 12
or 13) you are filing. This fee cannot be waived, and a case can be dismissed for failure to pay it. The fee is due at the
time the bankruptcy petition is filed. An individual debtor (but not a corporation or partnership) who is unable to pay
the full fee at the time of filing, must file an application with the Court Clerk’s office to pay the fee in installment
payment basis at the same time that the petition is filed. This form is available from the Clerk's Office. Experts say that
even if you happen to choose this option, that it will still serve you better if you try and pay a minimum of, say, $50 at
the time you bring your paperwork to the court, and make sure pay up the remainder of the fee in monthly
installments within three months. ((Not paying up this money, or paying it up on time, has been known to be the
cause which lead to the dismissal of may bankruptcy cased filed by debtors).
Q18: What is the Bankruptcy Code?
A: Created in 1978, the Bankruptcy Code contains the rules that provide for bankruptcy relief for businesses or
individuals in financial difficulty. There are two main options under this Code for bankruptcy relief: liquidation (Chapter
7), and reorganization (Chapters 11, 12 and 13). The Bankruptcy Code is available at law libraries. You may also
access the Code via a link from the web sites of many local bankruptcy courts.
Q19: What can I do if I don't understand some of the terms used in bankruptcy?
A: One helpful avenue, check the glossary of bankruptcy terms on this web site. You can look up words used in
bankruptcy that are not familiar to you there.
Q20: You’ve talked about Chapters 7 & 13 bankruptcies, what is the
difference between them and Chapter 11?
A: Chapter 7, for example, is often called the "liquidation chapter." Liquidation is the process through which the
debtor's non-exempt property is sold for cash by a trustee and the cash is distributed to creditors. In contrast to
Chapter 7, which is used (whether by individuals, partnerships, or corporations) who have no hope for repairing their
financial situation to liquidate the debtor's estate, Chapter 11, on the other hand, is often called the "reorganization
chapter." Chapter 11 allows corporations, partnerships, and individuals to reorganize their debts, without having to
liquidate all their assets. In a Chapter 11 case, the debtor presents a plan to creditors which, if accepted by the
creditors and approved by the Court, the court will allow the debtor to reorganize personal, financial or business
affairs and again become financially productive.
In Chapter 13, an individual with regular income who is overcome by debts but believes such debts can be repaid
within a reasonable period of time, may file under this Chapter of the Bankruptcy Code, permits the debtor to work
out a payment “plan” in which the debtor agrees to pay a certain percentage of future income to the Bankruptcy
Court for payment to creditors. If the Court approves the plan, the debtor will be under the Court's protection while
repaying such debts.
Q20B: What kind of paperwork and forms, for example, are involved in bankruptcy Which You May prepare for a
debtor?
A: For Chapter 7
- Pre-petition Credit Counseling Certificate (Obtain from Credit Counseling Agency)
- Voluntary Petition
- Means Test (OF-22A - Statement of Monthly Income)
- Summary of Schedules
- Schedules A - J
- Declaration concerning schedules
- Statement of Financial Affairs
- Statement of Intent
- Notice to Individual Consumer Debtors
- OF21 Statement of Social Security Number
- Creditor Matrix (complete list of named and addresses of all creditors)
- Post Petition Financial Management Course (OF23 - Certification of Completion) Due within 45 days of Meeting
of Creditors.
Chapter 13
- Pre-petition Credit Counseling Certificate (Obtain from Credit Counseling Agency)
- Voluntary Petition
- Means Test (OF 22C - Statement of Monthly Income)
- Summary of Schedules
- Schedules A - J
- Declaration concerning schedules
- Statement of Financial Affairs
- Notice to Individual Consumer Debtors
- OF-21 Statement of Social Security Number
- Creditor Matrix (complete list of named and addresses of all creditors)
- Post Petition Financial Management Course (OF23 - Certification of Completion)
In addition you must also file:
- Chapter 13 Plan
- Notice of Time to File Objections to Chapter 13 Plan
Chapter 13 Plan to all creditors - See local rules for service requirements)
Chapter 11
Chapter 11 (For corporate debtors, they must be represented by an attorney).
- Pre-petition Credit Counseling Certificate (Individual debtors only)(Obtain from Credit Counseling Agency)
- Voluntary Petition
- Means Test (OF-22C - Statement of Monthly Income)(Individual debtors only)
- Summary of Schedules
- Schedules A - H
- Current Income & Expense Report
- List of 20 Largest Unsecured Creditors
- Declaration concerning schedules
- Statement of Financial Affairs
- Notice to Individual Consumer Debtors
- OF21 Statement of Social Security Number
- Creditor Matrix (complete list of named and addresses of all creditors)
- Chapter 11 Plan
- Notice of Time to File Objections to Chapter 11 Plan
Q21: I've heard that I can only file a Chapter 13. Is this true?
A: Under the law which came into effect in October 2005, the new income consideration that were put in place began
to require debtors with income above a certain amount to file only Chapter 13, and make some repayments on their
debts, instead of Chapter 7, where you would not have to pay. That requirement is what is called the new “means
testing” of debtors. (See this PAGE for more on this).
Q22: What is the automatic stay?
A: filing of a bankruptcy petition automatically “stays” (stops) most actions, including collections, against the debtor
or the debtor's property. It is called "automatic" because the stay begins automatically at the time the bankruptcy
case is filed with the Clerk's Office. Once the stay is in place, creditors are prohibited from taking certain actions
against a debtor.
Q23: Will the ‘automatic stay’ of filling for bankruptcy stop creditors from calling my
home and work?
A: It will certainly help. After you file your petition with the court, the Clerk's Office will normally send a written notice
of your bankruptcy filing to all of the creditors you listed on your creditor mailing list matrix. Although this notice goes
out within one to two days of filing, it may usually take up to a week or longer for creditors to receive this notice
because of mail time. Hence, the general recommendation is, if a creditor calls immediately after you have filed your
petition, simply tell them you have filed for bankruptcy and that they will receive notice of this in the mail. Now, note
that if the creditor was not among those listed on your mailing matrix, you should make sure to update your matrix
with the Clerk's Office so that future updated notices about your bankruptcy can now be sent to that creditor. It is
important to make sure that you list ALL your creditors on your matrix, because the law says that if a creditor doesn't
get a notice of your bankruptcy, his debt might not be discharged in your bankruptcy.
By law, once a creditor receives that NOTICE of your bankruptcy filing from the court, they may not any further attempt
to collect on a debt from you – at least, unless they follow certain strict procedures, such as filing a motion
(application) with the court for the court to authorize a relief from the stay, contingent upon the court granting such
motion. If a creditor were to continue to try to collect a debt from you after being notified of your bankruptcy or
bankruptcy filing, you should contact the court clerk for information on some action or court sanction to take against
that creditor. Further more, after you file your bankruptcy petition, the court will give you your Case Number that
identifies your case as having been officially filed. What you do is, you can give that number to any bill collector who
calls and ask them not to call any more, and that will (should) be their last call – or they’ll be defying a court order and
risking a possible “contempt of court” sanction against them by the court, should they continue.
Q24: Where can I obtain the required bankruptcy forms?
A: You can purchase bankruptcy forms from most legal stationery stores and some bookstores. The forms may also
usually be purchased from the local Bankruptcy Clerk's Office for a minimal charge, or they may be downloaded and
printed from the Bankruptcy Court Website. Payment for anything at the Bankruptcy Clerk's Office – for filing fees,
purchase of forms, etc - is usually required to be made in money order; and personal checks are not accepted.
Q 25: In what court and how do I file for Bankruptcy?
A: The bankruptcy court is a Federal (not State) court, and so has district or divisional offices in each state covering
the area of the court’s jurisdiction. You may file your bankruptcy petition at these locations. The business hours, street
addresses and phone numbers for these court sites are listed on their web sites. THE EASIEST WAY: Visit online this
website for the bankruptcy courts – http://www.uscourts.gov/courtlinks. Click “Bankruptcy Court” on the left side to
select that court as the one handling the matter you’re interested in accessing. On the right side, check off “Area
Code” and/or “Zip Code.” Enter, for example, your zip code (or the name of the appropriate city and state) where you’
re located. That will take you directly to the Court Clerk’s office for the local court in which you are to file your
bankruptcy. Get the Court Clerk’s phone# and their website address and contact them for necessary information,
direction, and instruction.
You should check with them about the location's business hours have (among many other things) before trying to file
your paperwork with the office. You may, if you prefer, also mail your completed paperwork to the Bankruptcy Clerk's
Office in your district as long as you also mail payment for the required filing fee. If you do, BE ABSOLUTELY SURE TO
SEND IT BY CERTIFIED MAIL, WITH RETURN RECEIPT REQUESTED. Furthermore, note that it is generally advisable,
however, to ALWAYS file your papers with the court by personally going to the court and submitting your papers
directly to the court clerk and getting an official receipt and record of filing for your papers. Be aware that paying at
the Bankruptcy Clerk's Office – for filing fees, purchase of forms, etc - is usually required to be made in money order;
and personal checks are NOT accepted.
Q 26A: What Is Emergency Filing of Bankruptcy, and How Do You Make Emergency Filing?
A: Under the bankruptcy procedures, if you are in a situation where it's urgent and speed is essential, and you need
to stop some or all of your creditors QUICKLY, you can do so. You do so simply by making an emergency filing. Say,
for example, you face a foreclosure of your house and your house is scheduled to be sold in a few days, or that your
car is about to be repossessed. In such a case, by filing an emergency bankruptcy petition with the court, this will
stop the foreclosure or repossession (and other collection efforts against you) cold -- quickly.
Here, you don't have to file the full or complete set of papers required for the bankruptcy petition. But rather, you just
prepare and file these three basic forms with the court : 1) the Voluntary Petition form (including, also, the
Certificate of Proof of Completion of Credit Counseling); 2) Creditors' Mailing Matrix (which lists the names,
addresses, and zip codes of your creditors so that they can be notified of your filing), and 3) a Statement of Your
Social Security Number (Form 21), which provides your complete SS#. Upon your filing this emergency petition with
the bankruptcy court clerk, the "automatic stay" immediately comes into effect, and this stops collection efforts and
lawsuits against you. EXCEPT that you MUST be sure to file the remainder of the forms within (no later than) 15 days
thereafter.
IMPORTANT: Upon filing the Emergency Petition with the Court Clerk's office, while there request the Clerk to issue
you something called a Certificate of Bankruptcy Filing. Be sure to send a copy of that (use Certified Mail, return
receipt requested) to the creditors who're foreclosing on or seizing your property, and/or otherwise promptly present
that document to their immediate attention.
NOTE: Note that one of the very FIRST thing you ought to have done before you may do this, is attend the Credit
Counseling session requirement -- a formal consultation on credit matters with counselors at one of the approved non-
profit credit counseling agencies. TIME: OK as long this is done WITHIN 180 days immediately before your filing of the
petition. It's about a 30-minute affair, and can be done even the same day just before you file, and may be done
either in person, or by phone one-on-one, or by group teleconference. (They'll give you a Certificate of Completion of
Counseling upon completing that session -- the Certificate you attach to the papers to be filed with the court clerk's
office). Get the list of the Counseling agency for your area from: U.S. Trustee, www.usdoj.gov/ust. Click on "credit
counseling and debtor education."
Q 26B: What if I have an emergency filing after hours?
A: To file an emergency petition with the Clerk AFTER regular business hours, a pre-approved appointment is usually
required to be arranged. Contact the Clerk of Court's Office.
Q27: How many copies of the bankruptcy papers do I need to file at the court?
NOTE: We’re using one example that’s used by one Bankruptcy District in the United States. But note that EACH court
in each district is different and may require a completely different type or set of the forms, order of listing for the
forms, etc. So, always check with your local court of filing’s court clerk’s office; just find out what it specifically wants,
and simply supply it with that, accordingly. It’s that simple!
A: Chapter 7: Original documents plus 1 complete set of copies (petition, schedules and statements, matrix & any
attachments).
Chapter 13: Original documents plus 1 complete set of copies (petition, schedules and statements, matrix, plan & any
attachments)
Chapter 11: Original + 3 complete copies (petition, all schedules and statements, matrix & attachments).
For all chapters: the matrix must be filed on a 3.5" floppy diskette. If you are unable to provide your list of creditors on
a disk, your matrix must be typed on letter sized (8 1/2 by 11 inch) white paper in a single column down the page.
Please see the local rules, available on our web site, for more specifics regarding the matrix.
If you would like to have a conformed (file stamped) copy of bankruptcy documents that you file with the Clerk's Office,
you must make one extra copy of these documents for yourself. The Clerk will file stamp the extra copies and return
them to you. If you are mailing your documents to the Clerk's Office, you must provide a self addressed, stamped
envelope with enough postage to cover return postage for these documents.
Q28: Do I need to send a copy of the petition to anyone else?
A: The Clerk's Office will normally notify all the creditors you have listed on your creditor matrix of your bankruptcy
filing by mailing a written notice to them. For this reason, it is very important that you provide complete addresses,
including city, state and zip code, for each creditor on your creditor matrix, and further, that you make sure to include
ALL your creditors among the creditors listed in your bankruptcy petition.
If you feel a more immediate notice of your bankruptcy is necessary to be given to a particular creditor, it is your
responsibility to determine what type of notice is appropriate and give that notice to the creditor, such as writing
them a certified letter with the particulars of the bankruptcy filing, or a copy of the bankruptcy petition, included, and
the like.
Q29: What do you mean by ‘Matrix'?
A: A creditor matrix is a list of the names and current addresses of all creditors and other parties that should have an
official notice that a bankruptcy case was filed. It is prepared by a debtor and must be filed at the same time the
bankruptcy petition is filed. As a debtor, it is your responsibility to ensure you have listed, the current, valid addresses
of each and ALL of your creditors. If a mail that is sent by you or the Clerk's Office regarding your bankruptcy comes
back as "undeliverable," it is your responsibility to try to find a good address for the creditor and to promptly notify
the Clerk's Office of the good address. Additionally, if you obtain a different address for a creditor after you file your
bankruptcy, you must, again, notify the Clerk's Office in writing of the new address.
It is possible for creditors and other parties to add themselves to the matrix as well. Names may be added or changed
when a creditor files a proof of claim in your bankruptcy case or files a notice of change of address. If there are any
attorneys who appear in your case on behalf of a creditor, they should also get added to the matrix
.
Q30: What are the duties of the trustee?
A: Basically, the job of the case Trustee (he’s different from the U.S. Trustee) is to manage the individual debtors
bankruptcy cases; he keeps tab of the cases and if he finds cases that have assets with some equity left in them, he
tries to liquidate them (sell or reduce them to cash) and use the proceeds to pay off the creditors, particularly the
secured creditors. In rare bankruptcy cases where he finds there’s money still left after the secured creditors are paid,
the trustee will get to pay the unsecured creditors as well, based on the order or their “priority.” There’s yet a third
scenario that the trustee may often face regarding what he does with the debtor’s property – “abandonment” of
property. This involves a situation when the trustee evaluates the asset of a debtor, usually the secured assets, and
makes the calculation that even if he were to liquidate the assets, the liquidation value or return on the assets simply
will not amount to much as to be able to pay off the secured creditors. And so, the trustee simply "abandons" the
assets and lets the debtor keep them.
Q31: I thought filing for Chapter 13 bankruptcy would have stopped the foreclosure of my home? Can the
creditors still take my house?
A: Yes, it can – but only up to a point in time. True, when you file for bankruptcy, you immediately get the court
protection called an "automatic stay" – meaning a “stay” (stop) of any collection attempts or court actions against you
for now, such as foreclosure of the home or attempts to make a sheriff's sales. However, a creditor, such as the
mortgage holder, can still go into court and file with the court a “motion” (a request) asking that the bankruptcy judge
grant him a "relief from stay," on the automatic stay. And, Based on the basis and grounds presented to the judge
for the request, if the judge finds it the right and proper thing to do, the judge may grant the creditor’s request
thereby allowing the creditor to go ahead and foreclose on the property, even with the debtor’s bankruptcy filing.
Q31B: If you file for bankruptcy and one of the companies or people you owe file a claim or an objection against
you, how would you know?
A. Assuming, of course, that you have, as you ought to have done, listed the creditor (the company or individual you
owe the money to) in your bankruptcy petition or case, you will receive a written notice in the mail from the Clerk's
Office advising you that the creditor has filed a Claim and/or “Proof of Claim” with the court asking that it be paid
(along with all the other creditors you have) out of any available assets you have, if any. If the creditor is filing an
objection against your debt being discharged or cancelled – and, actually, this is something that doesn’t happen too
often in personal, no-asset bankruptcy cases - the Clerk’s notice you’ll receive will indicate that the creditor had filed a
COMPLAINT, and the notice will also include a copy of the complaint, along with a copy of Summons and Notice of Trial,
asking for you to respond to the creditor’s objection or complaint (if at all you wish to contest that complaint) within a
certain specified date.
Q31C: How does a creditor I listed in my bankruptcy, file to be relieved from the Automatic Stay?
A: It is true that once a debtor files for bankruptcy, creditors generally can't continue court proceedings to collect on
debt against him. [11 U.S.C. § 362(a)]. There are certain exceptions, however. In order for a creditor to continue a
court or collection proceeding against the debtor whose case has been stayed because of his (or her) filing for
bankruptcy, the creditor must obtain an order from the Bankruptcy Court granting relief from the stay.
In order to obtain relief from stay, the creditor would have to file documents known as “Motion for Relief from Stay,”
along with a “Notice of Motion for Relief From Stay.” The originals of these two documents will need to be filed with
the Bankruptcy Court, along with a filing fee. [This fee will not be required if the creditor who is moving this motion for
relief is seeking to collect child support, and has also filed Official Form B-281 with the court]. As the debtor, you are
to receive copies of both documents, they are to be “served” on (delivered to) you (and other creditors and parties in
interest in the case) by the creditor who is seeking the motion. A stipulation or agreement for relief from stay is
treated the same as a motion for relief from stay, and must also be noticed to the appropriate parties in the case.
The legal authority for obtaining relief from stay can be found in section 362 of the Bankruptcy Code [11 U.S.C. § 362
(d)]. In addition, Alaska Local Bankruptcy Rule 4001-1 (the State we're using here just to illustrate the principle)
describes the procedure for filing and noticing a motion for relief from stay. Some Local Bankruptcy forms (e.g., the
Alaska Local Bankruptcy Forms 1, 2 and 3) can also be used to serve as forms for a motion for relief from stay and
notice of motion for relief from stay.
After the motion or formal request for relief from stay has been properly noticed and served on (delivered to) the
debtor, if the debtor wishes to object to its being granted by the court, he/she must hurry and do so in writing within
the deadline specified for objections. The Court will then set a date for a hearing on that, and hold the hearing before
he may decide on or enter an order granting the relief. Or, if no objections to the motion have been timely filed, the
moving creditor must file a Certificate of No Objection with the court, along with a proposed order granting the motion
Q32: What are those reasons for which you say a judge could allow a creditor to foreclose on my home even
when I've filed bankruptcy?
A: SAY, BECAUSE:
1. You filed a chapter 7 when you owe a couple of months worth of unpaid mortgage bills and Chapter 7 which, unlike
Chapter 13, does not usually provide for a way of catching up with arrears on missed payments.
2. You filled for Chapter 13 but fail to work up or to file a payment plan that the court will find viable or confirmable, or
to provide the necessary documents on time
3. Your income is calculated to be insufficient to fund a Chapter 13 payment plan within the court's guidelines.
4. The value of the home is rapidly eroding.
5. You default seriously, over several months, on the monthly payments you’re required to make in Chapter 13
payment you made with the court.
Q33: Can I change my case from a Chapter 13 to a Chapter 7?
A: Yes, a debtor who meets the requirements can change in either direction – from chapter 13 to chapter 7, or vice
versa. To do so, the debtor, after having filed for chapter 7 or chapter 13, files with the court a what is called a
"motion to convert," requesting that his case be converted from, say, its pre-existing Chapter 13, to Chapter 7, and if
granted, the conversation is made. The trustee can also request a conversion.
True, conversion could be made from either chapter to the other. However, the direction seems to go more in from
Chapter 13 to Chapter 7 as debtors in Chapter 13 bankruptcy frequently find themselves unable to keep up with the
scheduled payments (due to loss of job, illness, etc) and must often file for conversion from their present Chapter 13
to chapter 7 where they would not have to make such payments. If the case trustee were to thinks, for example, that
a debtor’s bankruptcy estate probably has money such that it might be able to pay some unsecured creditors some
thing, the trustee may, as well, possibly make a motion to the court asking to convert the debtor from chapter 7 to a
chapter 13.
Q34: Does whether my spouse file for bankruptcy separately or jointly make any real difference for us? What
are the factors we need to consider in making a choice?
A: Yes, whether you file alone or together will have some impact of sorts. For example, filing together will eliminate
the SEPARATE debts of you and your spouse and all the JOINTLY-HELD marital debts. Filing alone will wipe out the
filing spouse's separate debts and his/her share of the joint debts, but leave the other spouse who did not file for
bankruptcy still liable for his or her own share of the joint debts.
Some of the factors to consider in deciding whether to file separately OR jointly, include:
1. If only one spouse owns all or most of the debts, then only that person should file;
2. If both spouses own the debt, and want to file a Chapter 7, then both should file;
3. If the primary interest of the parties in wanting to file for bankruptcy is to stop a foreclosure, only one partner, the
one whose name is on the title to the home (or both, if both have their names on the title), need to file a Chapter 13.
4. If all the debts were incurred BEFORE the parties were married, there is no point in having you both file.
5. Are you legally separated, have already divided your property and taken care of your major financial issues? Your
best option may be to have the spouses file separately.
6. Whether you should file a joint petition or a single one will also depend, in part, on the type of property involved,
the amount of community debt involved, and how the property is held (e.g., is it held as community property, in joint
tenancy, or in an estate-by-the-entirety form, etc).
Community property method and the common law (also called "equitable distribution") property method, are the two
main types of martial property ownership. The vast majority of states apply the common law or equitable distribution
rules; nine states apply the community property rules. If you live in a COMMON LAW property state, the “bankruptcy
estate” of your spouse (meaning all the property considered by the case trustee as being owned by her for purposes
of the bankruptcy), will include his/her separate property and half of the jointly-held marital property. So, the non-
bankrupt spouse will not have to worry about the effects of the bankruptcy on his or her separate property.
NOTE: Note that in such common law jurisdictions the bankruptcy court ordinarily scrutinizes this matter very closely
to see if the other spouse who is not filing for bankruptcy is perhaps merely holding the common law marital property
for, or has received it from, the bankruptcy-filing spouse within one year of filing for bankruptcy. And if this is found to
be so, such transaction may be considered fraudulent, and the property may be ordered turned over to the
bankruptcy trustee.
7. If you live in community property jurisdiction, all the community property you and your spouse own jointly is part of
the bankruptcy estate, regardless whether you join in the bankruptcy filing. (In community property states, spouses
own all property earned or received DURING the marriage equally, splitting it 50-50). The SEPARATE property of the
parties - property each owned before the marriage - is not effected by the bankruptcy filing spouse's bankruptcy.
Property held separately by the bankruptcy filing spouse will be used, first, to settle debt, and the non-exempt
community property will then be used.
Q35: If only my spouse files, what am I liable for and what happens to my credit?
A: As long as there was no joint debt in which you are involved, either directly or as a co-signer, then your credit will
not generally be affected. If, however, there was joint debt between the parties, even if only one spouse filed for
bankruptcy, the other spouse who did not file may still be help responsible for the entire debt. See Item …above for
Q36: Can I file without my family, friends, neighbors, or spouse, knowing about it?
A: Yes! It’s possible. See Item # 12,
Q37: Is going Bankrupt a bad thing to do?
A: No. See, for just an example, this page of this Web Siite.
away. In addition to providing relief from debts and obligations for individuals, hundreds of such long established blue
chip companies as Dow Corning, Montgomery Ward, Penn Central and Texaco have used the provisions of the
bankruptcy laws.
Q38: Are there any bad or negative sides to declaring bankruptcy?
A: Certainly. Let us be absolutely clear here about one thing: filing or declaring bankruptcy should NEVER be taken
lightly by any debtor. NEVER! It’s a most serious financial and social matter – both for the creditors who have to forgo
their money or obligations legitimately owed to them because a debtor has to go bankrupt, and for the debtor himself
or herself who has to go through the stigma and the feeling of inadequacy, depression and failure, for being unable to
meet one’s financial obligations that are associated with bankruptcy.
Hence, bankruptcy is not something that any debtor should just enter into lightly, irresponsibly, or at the drop of a
hat, except as the very last resort because there is absolutely no other viable alternative or way out readily available
to him or her. Aside from that, bankruptcy has a few real negative aspects for the bankrupt debtor - your credit
records are clearly negatively affected by declaring bankruptcy, your overall personal finances, even if not usually as
seriously as is often advertised, will be negatively impacted by it, and may, atimes, make it more difficult for you to
obtain new credit for a given period of time, etc.
Q39: With Bankruptcy, Will I Ever Rebuild My Credit?
A: First of all, the fact of the matter is that in the dire, near-hopeless financial condition you are in already, right now,
that brought you to this point where you have to even seriously contemplate filing for bankruptcy as a live option, you
never had any “credit” to speak of, in the first place. When lenders or other creditors look at your current financial
condition right this minute in terms of considering you to decide on whether to grant you NEW credit, what do you
honestly think? Do you think they’ll ever dream of granting you any credit – that is, other than the one the had
already granted you previously, which they’re just about all probably right now that you’re in such sorry financial state
that you haven’t been paying up?
The point is that your “credit,” given your credit and financial condition right now, is long DEAD, and you don’t have
any right now to protect or worry about, and whether you file for bankruptcy has nothing to do with it. So, you might
as well go ahead and try to free yourself, first, from the debt burden you carry with you, and after you’re free from
that, you can begin to worry about, plan, and work on, building your credit anew – gradually. Bottom line: If you don’t
try to pick yourself up, and get yourself freed quickly from the debt burden that has you weighed down right now, you
may NEVER build or have new credit – EVER. But if you do, you’ve at least got a fair chance of doing so some time
down the road!
Q40: How long will it take for me to build or rebuild my credit?
A: Actually, according to credit counselors and financial experts, not really that long. All it’ll take is for you to have a
stead job with a record of decent earnings and staying current and timely on your ordinary bills (you gas, electricity,
cable, phone, etc., and before you know it, you’d have credit card companies sending you solicitations for credit. And if
you begin to show a record of timely payments on one credit card or other, it wouldn't take long for the word to go
around within the credit industry, and before you know it, your ability to get credit is fully restored with most creditors
out that.
Q41: Which type of personal bankruptcy is the least burdensome for the debtor – Chapter 7, 11, or 13?
A: Chapter 7. Generally, that’s the least expensive from the debtor’s point of view because, first of all, the debtor
ordinarily does not have to pay back or off any debts, and he can just walk away clean and clear – totally free from
the debt burden, and ready to begin his financial life afresh without that burden or worry. That’s why Chapter 7 has
traditionally been called “straight” bankruptcy, or “pure” bankruptcy. The next least expensive or burdensome for the
debtor, is of course Chapter 13. With Chapter 13, the debtor generally has to repay ONLY about 10 cents or so on the
dollar of what is owed. Chapter 11 is the most taxing of the three for a debtor.
Q42A: Assuming I've got to file or I'm filing Chapter 7 bankruptcy, what are the options do I have regarding any
SECURED property I have?
A: Basically, you have three main options:
- reaffirmation (you reaffirm the debts which secure the property)
- redemption (you agree to redeem the property - meaning, basically, that you'll make a lump sum payment of
the property's fair market value to the lender); or - surrender of the property to the creditor (through the bankruptcy trustee).
Q42B: Can I pick and choose which assets I may put into a personal bankruptcy?
A: No. That is strictly forbidden by the bankruptcy code. The rule is this: You MUST list ALL assets you own in the asset
schedules you declare in your bankruptcy filing. After filing, then you may make a choice as to which ones could be
picked as exempt property under the provisions of your state (or the Federal listing, where that’s allowable for that
state).
Q43: Can I pick and choose which debts in my bankruptcy filing I may pay or not pay?
A: No. Exactly the same answer as in Item…immediately above, applies here too.
Q44: Just what is “reaffirming” a debt or obligation in bankruptcy all about?
A: It literally means a debt or obligation to which you RECOMMIT to repay, even if and after, you file for bankruptcy or
get discharged in bankruptcy. For instance, let’s say you have a vehicle (that the kind of property called SECURED
PROPERTY) for which you owe on (a SECURED DEBT), and you wish to keep this vehicle and not have it repossessed
by your creditor because you need the vehicle to keep going to your job. So, what you do in that instance would be to
agree with the creditor that you’ll “reaffirm” the debt on the vehicle (i.e., make and sign a new contract with him on it)
whereby you enter into a new, special agreement that you’ll keep making the payments on the vehicle and retain it,
meaning that irrespective of whether you file for bankruptcy and get discharge from other debts you owe to other
creditors, the automobile creditor will get paid by you. That’s what’s called “reaffirmation agreement.”
In other words, it is a situation where you'll continue (by your agreement) to make regular payments on the secured
property in question, and in exchange, your creditor will let you keep the property and not seize or repossess it - as
long as you keep making the payments. Should you fall behind on the payments, however, the creditor can sue you
for what you owe. NOTE: Note that the reaffirmed debt will NOT be discharged in bankruptcy, and they are strictly
voluntary.
Another general situation when a debtor himself may readily want to reaffirm a debt, would be in a situation where
there is a co-signer or guarantor to the debt (such as a family member, friend or employer) that the debtor does not
wish to leave saddled with the debt, and so the debtor elects to enter into a reaffirmation arrangement with the
debtor to pay up the creditor any way, in spite of his declaring bankruptcy.
Q45: If I can’t pick and choose which debts or which assets I can put in bankruptcy, how come I can pick and
choose which ones I can “affirm”? What’s the difference?
A: With respect to the affirming of certain obligations, this applies ONLY to debts (and the assets or property that
underlie or secure them) that are SECURED debts and property, but not to unsecured obligations (such as credit card
bills, medical bills, and the like). A debtor can affirm these kinds of obligations because that’s part of the rights that
the contract the debtor signed when he or she took on the loan grants him or her. Secondly, note that when you
affirm a debt, you do it openly and officially, so the court is fully aware of it and approves of it. But when you ‘pick and
choose,’ say, one credit card over another to keep and continue paying on, you do it generally on your own without
reporting or reflecting that in the bankruptcy papers to the court.
Q46A: What is redemption of property?
A: Here, you (the debtor on a secured property) agree to make one lump-sum payment to the creditor on the secured
property's fair market value in order to keep the property - regardless of the amount of money you actually owe on it.
Meaning that any amount you actually owe on it in excess of the property's current value, could be discharged as part
of your bankruptcy.
Q46B: What is surrender of property?
A: In this case, if, making regular payments on a secured property you have, say, a card, or having to cough up a lump sum amount, are
beyond you as you would have to do in the case or reaffirmation of the debt or redeeming it, are beyond your means, then this would be
the third option open to you - you simply surrender the property to the creditor. Any debt you have on the property may be dischargeable by
the court in bankruptcy.
Q47A: Will I have to Before a Judge and be ‘Cross Examined’ for the Bankruptcy case?
A: For the most part, NO, unless your case is a Chapter 13 case. For some 95% or more of the debtors who file for
personal bankruptcy under Chapter 7, their cases fall under the category where they will NOT ever see a judge or go
before a judge at any time in the whole process of their bankruptcy. So, the chances if involved in Chapter 7 case, will
be that you will not have to even see the inside of a judge’s courtroom while you get discharged in bankruptcy. The
only thing you’ll have to do, though, is that you will attend a meeting with your case trustee, called the 341 Meeting
or Creditors’ Meeting, in approximately 30 to 40 days after you file for bankruptcy. The meeting lasts for only a few
minutes, or even less sometimes. And after that, assuming everything goes well, you should receive a discharge
notice in the mail advising you that it is all over and that you’ve received your bankruptcy discharge
Q47B: What is a Section 341 Meeting or Meeting of Creditors?
A: The section 341 meeting, also called the MEETING OF CREDITORS or the Creditor's Meeting, is a meeting that the
debtor in the case is required to attend after having filed the bankruptcy petition with the court. The meeting is
conducted by the case Trustee. The most important thing about this Meeting, is simply this: the debtor is required to,
and MUST, appear at this meeting. And he (or she) is to testify, under oath, about his financial condition, assets and
debts. Basically, much of the questions the debtor will be asked, will be about the information he has placed on his
bankruptcy forms and paperwork. Creditors may also attend this meeting and question the debtor, although the
meeting is directed by the trustee assigned to the case, and, generally most of the questions that are asked come
from him. If a debtor fails to attend the meeting, his bankruptcy case will usually be dismissed, unless there’s good
reason supplied the court for that.
After a bankruptcy petition is filed, the debtor should expect to receive notice shortly thereafter by mail from the Court
Clerk’s Office giving the date and time scheduled for the creditor's meeting, as well as notice of what items the debtor
should bring to the meeting for review by the trustee at the meeting (such as proof of identification, bank statements,
tax returns, social security card, etc.).
Q48: What if I am unable to attend the creditor's meeting on the day scheduled?
A: If you are unable to attend the creditor's meeting on the day it is scheduled, you must contact the Case Trustee
(and/or the U.S. Trustee's Office) as soon as possible at the phone number his/her office might have provided you in
the first notice to you, and request that the matter be continued. If you are unable to travel to the town your
meeting is being held in for whatever reason (say, because it’s too distant for you, or for whatever reason), you can
make a written request to appear telephonically at your creditor's meeting. The case Trustee or U.S. Trustee's Office
will determine if your circumstances warrant an appearance by telephone. If you are serving in the Military and will be
out of state, it is often possible to give a power of attorney to your spouse, but you should check with the
Trustee's Office.
Q49: What is the function of the U.S. Trustee and where are they located?
A: The Office of the United States Trustee is an Executive Branch agency that is part of the Department of Justice. It
is responsible for monitoring the administration of bankruptcy cases and detecting bankruptcy fraud where present. It
is also responsible for appointing the panel trustees that directly administer chapter 7 and chapter 13 cases. The
individuals who serve as interim or standing trustees in bankruptcy cases that directly individual bankruptcy cases and
conduct the Creditor’s Meetings and the examination of debtors, are different from the U. S. Trustee. The U. S.
Trustee is the one who appoint these individuals, and also provides support and oversight to debtors who have filed
Chapter 11. The case Trustees are appointed on a rotating basis and come from a list that changes over time.
Q50: How long does it take to go through a bankruptcy or get my discharge?
A: Each case is different, but a general rule of thumb in a Chapter 7 case is that a debtor's discharge will be entered
roughly about 120 to 150 days after the case was filed. The entry of a discharge may take longer if a debtor's
entitlement to the discharge is contested. In Chapter 11 cases, a discharge is obtained when the plan is confirmed
and other requirements of the Bankruptcy Code have been satisfied. In Chapter 12 and 13 cases, a discharge is not
entered until the payment plan has been completed. Chapter 12 and 13 plans generally last from 36 to 60 months (3
to 5 years).
Q51: How long does a bankruptcy stay on my credit report?
A: The general rule is that a bankruptcy generally affects a debtor's credit report for 7 to 10 years. However, this
depends entirely on the individual credit reporting agency. Actually, the Bankruptcy Court has no influence on the type
of information the credit bureaus report, nor how long they keep it in their records. If you are interested in pulling a
credit report for yourself, you should visit this website: www.annualcreditreport.com.
Under a new federal law, you have the right to receive a free copy of your credit report once every 12 months from
each of the three credit reporting agencies. Each agency's report on your credit may contain information from different
creditors. To receive a free annual credit report, you can call or send a written request to:
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
1-877-322-8228
You can also contact the credit reporting agencies directly at:
Equifax - www.equifax.com / 1-800-685-1111
Experian - www.experian.com / 1-888-397-3742
Trans Union - www.transunion.com / 1-800-916-8800
Q51B: How secure is the information I provide?
A: Our Site utilizes the most current forms of security in order to safeguard the information you provide. All forms that
you complete and e-mails that you send and receive are done so through SSL (Secure Socket Layer) technology which
prevents non-authorized parties from accessing, using, or viewing the information.
Q52: I'm filing for bankruptcy but have also discovered a lien against my property. What should I do?
A: A bankruptcy discharge will wipe out most debts, but doesn't affect liens which may exist against your property.
Certain types of liens, such as judgment liens, may be set aside by the Bankruptcy Court under certain circumstances.
In order to set aside a lien, you must file with the Court what is called a "Motion to Avoid Lien" following the
necessary court procedures, and formally “serve” (that is, officially deliver) a notice of that motion upon the creditor
whose lien you are trying to set aside.
Q53: Where can I get more information?
A: Search through various relevant sections of good, informative websites that provide competent, well-researched
legal and/or financial information, such as this Website, the website of your local bankruptcy court, or law and public
libraries, for such information.
CASE FILING & PROCESSING ISSUES,
COURT CLERK OPERATIONS
Q54: What is an “Ex Parte” matter and how do I file for it?
A: "Ex-parte" simply means without notice. An ex parte matter is any “motion” (i.e.’ a request made in writing) for
relief, where the requesting party wants the court to grant the requested relief without giving the normal notice to all
interested parties. Ex parte relief is limited to requests for hearings on shortened time, or to other special
circumstances where there is some justification for not having to give notice to all interested parties.
Q55: Where do I get a copy of the Federal Rules of Bankruptcy Procedure?
A: The Federal Rules of Bankruptcy Procedure are available for review in virtually any Court Clerk's Office location and
at law libraries.
Q56: Where do I get a copy of the Local Rules?
A: The State Local Bankruptcy Rules for a given Bankruptcy Court area are generally widely available within the state.
They are on the local court's web site and also on the other web sites. States also have their own. Local Bankruptcy
Rules, which would be available for review in the local Clerk's Office.
Q57: How do I get a hearing date by the judge on an issue?
A: A Local Bankruptcy Form for your state or jurisdiction for that must be filled out and submitted to the Clerk's Office.
A copy of this form is generally available in the Clerks' Office or may be downloaded from the court web site (under
forms).
Q58: Can I attend a Bankruptcy Court hearing by telephone?
A: Maybe. Actually, attendance of hearings by telephone is a privilege which is generally permitted unless another
party objects. Individuals wishing to appear at a hearing by telephone must notify the In-Court Clerk's Department at
271 at the phone # provided by the Court Clerk’s office for it, usually at least 3 or more days before the hearing to
request to have telephonic attendance. When asking for a telephonic appearance, a party must provide the clerk with
the case number, day and time of hearing, and a contact phone number where the party can be reached.
If you make arrangements to attend a Bankruptcy Court hearing by telephone, you must be available for that hearing
at the phone number you provided to the clerk, at the time the hearing is scheduled. Generally, since it is viewed
merely as a “privilege,” in a telephonic attendance arrangement, the court (the case Trustee) will not usually attempt
to reach you for the hearing more than once, and will not tolerate being put "on hold." It will not usually delay the
proceedings if there is a problem reaching you at the time the hearing is scheduled.
Q59: What if I don't agree with a certain order that is entered by the court and I want to object to it?
A: You may do one of two things: file a “Motion for Reconsideration,” or file a “Notice of Appeal.” Both documents must
usually be filed at least WITHIN 10 calendar days of the date that the court’s order or judgment in question was
entered. In a Notice of Appeal, the objective of party filing the appeal (“the appellant”), is basically to reverse or
change the order or judgment entered by the court. The Notice of Appeal, along with the filing fee that is charged for
that, must be filed WITHIN 10 calendar days of the order or judgment being entered. Appeals are automatically
referred to the Bankruptcy Appellate Panel, or BAP, unless the party filing the appeal also files an election to have the
appeal be heard by the U.S. District Court.
The appellant's election to U.S. District Court, if made by the appealing party, must be a separate document and must
be filed at the same time that the appeal is filed. If the party filing the appeal does not elect to have the appeal heard
by the U.S. District Court, other parties to the appeal (“the appellees”) may do so, but there are time limitations on
when this can be done. More information about appeals can be found in the BAP Litigant's Manual, found on the web
site of most bankruptcy courts.
Note that appeals can be lengthy and complicated procedures. You may want to do it by yourself, with quite a bit of
legal research, if you prefer (you still have a right to do so, if that’s what you want!), or, you may, in this instance
want to seek the advice or assistance of a competent attorney in handling it.
Q60: How do I find out which trustee has been assigned to a bankruptcy case?
A: The face page of the Case Docket document that you’re supposed to receive from the court immediately within a
few days of your filing your bankruptcy petition, contains the name of the trustee in all chapter 7, 12 and 13 cases.
The U.S. Trustee serves as trustee in all chapter 11 cases by default, unless a trustee is specially appointed in a given
case. You may obtain the trustee's name by visiting the Clerk's Office in person, or by telephoning the U.S. Trustee's
office. (The appropriate local office of the U.S. Trustee could be found in the Case Docket document you were sent, or
by visiting their website at: http://www.usdoj.gov). You can also look up a case information over the Internet through
the Public Access to Court Electronic Records (PACER) system, if you have access to PACER.
Q61: Is bankruptcy information public information? Can anyone look at it?
A: The information contained in documents filed in bankruptcy cases are a matter of public record, and can be
reviewed by members of the general public. The documents can be reviewed by members of the public in the Clerk's
Office during regular business hours. For attorneys and creditors who have access to PACER, over the Internet 24
hours a day.
Access to pleadings and papers filed in bankruptcy cases is not restricted unless there is some good basis for
"sealing" information that is contained in them. To have a document filed "Under Seal" or "In Camera," a motion
(formal request in writing) seeking that must be filed with the court clerk, explaining the need to protect the
information in that document from public view.
If you are a debtor, you should be aware that the filing of bankruptcy may affect your credit rating. Several reporting
agencies report bankruptcy information and statistics to the public, and credit reporting agencies also regularly collect
bankruptcy information.
Q62: How do I obtain information about a case?
A: Telephone Access: Basic information, such at the debtor or debtor's name, his attorney's name (if he used one for
the case), the case number, or the name of the trustee, is available on the telephone by calling the VCIS (Voice Case
Information System) designated by the particular local bankruptcy court district. (Inquire about this phone# with the
local Court Clerk’s office). This information is provided free of charge and is available 24 hours a day from any touch
tone phone.
Computer Access: Electronic case summaries, docket information, and viewable copies of all case pleadings filed since
2000, may be retrieved via the Internet through the Public Access to Court Electronic Records system (PACER). This
system requires that you be a registered participant, and there is a fee for access ($0.08 per page, with a page being
approximately 50 lines of text). This charge is limited to the first thirty pages of a document or report screen you are
running, but is charged each time you open a new document. PACER is available by their online address. Just open
your computer browser and type in the address: "https://ecf.akb.uscourts.gov". For PACER registration information,
please call (800) 676-6856.
In Person: Documents may be viewed in person or retrieved for copying at the Clerk's Office. Cases which are one
year old or older, may have been be closed and archived at the Federal Records Center for the area. To determine if a
case has been archived, contact your local Clerk's Office. Records may be obtained directly from the Federal Records
Center, but you will need to obtain certain archiving information from the Clerk's Office prior to requesting information
from the National Records and Archive Administration (NARA), which oversees the Federal Records Center.
Copies of documents: Copies of court records and documents relating to such cases can also be obtained in the
Clerk's Office, or through the PACER system.
Q63: What if the case I'm interested in has been archived?
A: If a case has been archived, there may be some information on the case that is still available through the Clerk's
Office. You should first check to see what information is available there. If the Clerk's Office doesn't have the records
you need, the Clerk will provide you with certain archive information, such as accession record retrieval numbers
(persons who use or have access to PACER may access this information through the ECF system, under the query
search field, case summary information screen), as well as the phone # to call for the archive’s location. With this
access information, you may call the National Archive & Records Administration (NARA) for the region your court is
located in to request the information you need.
For written requests sent to NARA, there is a per document search fee, payable in either a U.S. Postal Service money
order or a cashiers check from a bank. In your request to NARA you must be specific about which documents you
would like copied, and you must include full contact information for yourself. Please contact the court or NARA for the
fee amount.
Alternatively, you can ask the Clerk's Office to have the entire case file returned to the Court Clerk’s office for you to
review. There is a retrieval fee, please contact the clerks office for the correct amount. The file is sent to the Clerk's
Office by NARA and it takes about four weeks for the file to arrive. The Clerk's Office will hold the retrieved case file for
30 days unless a longer period of time is requested. The file can only be reviewed in the Clerk's Office; it cannot be
removed for copying or viewing at another location.
Q64: How do I get certified copies of documents involved in bankruptcy?
A: Generally, you may go to the Court Clerk's office and request certified copies. Be prepared (have some money
available) to pay for a printing fee and a certification fee for each document to be certified. Alternatively, if you know
the documents you are looking for, you can mail a request to the Clerk's Office. (Call the office first and be sure
whether they accept this method). Your request, if you use that method, must identify the documents you want
certified specifically. Be sure to include the case name, case number, and the filing date and the title of the specific
documents which you wish to have certified.
In addition, don’t forget to include your own name, address and daytime contact number, so the Clerk can reach you if
he has any questions about your request.
Also, if you request certified documents by mail, you may often be required to include payment for the Clerk's file
research and certification with your request. The payment must be in the form of either a bank cashiers check or a U.
S. Postal money order made payable to the United States Bankruptcy Court. The fees that apply when requesting a
certified document by mail include: a per document research fee, a certification fee per document, and a per page
photocopy fee. If you are unsure of what the total charge for certifying the document will be, leave the dollar amount
of your check blank, and in the dollar line insert the words "Not to exceed Fifty Dollars." If you are able to come to the
Clerk's Office to request a certified copy, the research fee will not be charged.
Q65: Does the spouse of a married person have to file bankruptcy with his or her spouse?
A: No. The other spouse does not have to, he or she is not legally obligated to join the other one who want to file for
bankruptcy. One spouse, if he or she prefers, can file “sole” bankruptcy as an individual. However, if BOTH spouses
voluntarily agree and wish to file together, they may do so and file “joint” bankruptcy.
Q66: Can I keep some of my credit cards when filing for bankruptcy?
A: True, some debtors hide and can keep one or more of their credit cards in the hope of keeping payments on it so
as to retain the credit card. However, under the law, that’s really generally frowned upon. It’s usually not deemed a
good or wise idea by credit counselors for the debtor who files for bankruptcy to keep some credit cards – and credit
card debts – and keep those debts going after bankruptcy, when the debtor could have just included those debts in
the bankruptcy, and thereby have them, as well, wiped out in bankruptcy. But, it’s your life and your choice. You do
what you want on that.
Q67: What if I committed fraud, would my debts still be discharged in bankruptcy?
A: No! The long history of the bankruptcy system and the series of laws and amendments enacted by Congress to
govern bankruptcy over the years, as well as the rulings of the courts in preservation of the right of bankruptcy, have
shown one consistent objective and intention over those years – namely, maintenance of a basic policy of affording
debt relief only to the "honest but unfortunate debtor," but NOT to debtors whose indebtedness are demonstrated to
be the product of fraud and financial manipulations and dealings.
Consequently, Section 523(a)(2)(A) of the Bankruptcy Code, for example, excepts acts such as the following from
being discharged in bankruptcy: "any debt . . . for money, property, services, or an extension, renewal, or refinancing
of credit, to the extent obtained by . . . false pretenses, a false representation, or actual fraud." 11 U.S.C. § 523(a)(2)
(A).
Q68: Are statutory penalties and punitive damages for fraud dischargeable in bankruptcy?
A: No. Not at all. This is considered to be one of the most serious kinds of debts among all debts and obligations that
are classified as non-dischargeable. Consequently, such indebtedness are not only non dischargeable and must be
paid up by the debtor, but also have serious penalties and financial sanctions attached to them.
Q69: What are your tax obligations if you are filing for bankruptcy?
A: What would be the tax obligations of a debtor would vary, depending on whether the debtor files Chapter 7 or
Chapter 13 bankruptcy. If the bankruptcy filed by the debtor is Chapter 7 bankruptcy, that creates a separate taxable
“bankruptcy estate” – namely, all property owned by or belonging to the debtor before the filing date, and which is
completely separate from the debtor as an individual taxpayer.
Under the law, in such a situation involving Chapter 7 bankruptcy, the trustee is responsible for preparing and filing
such estate’s tax returns (Form 1041) and paying its taxes. However, the individual debtor is responsible for filing
returns (Form 1040) on property that does not belong to the estate, and paying taxes on any income that is
attributable to it. The filing of a Chapter 13 bankruptcy petition, on the other hand, does not create a separate
taxable estate at all for federal tax purposes; the debtor just files the same federal income tax return (Form 1040)
that was filed prior to the bankruptcy petition.
Q70: What happens to my Federal Tax Debts?
A: What would be the tax obligations of such a debtor would vary, depending on whether the debtor files Chapter 7
or Chapter 13 bankruptcy. If the bankruptcy filed by the debtor is Chapter 7, the federal income taxes attributable to
the debtor can be completely eliminated, if all the following conditions are met:
- the IRS had not filed a prior tax lien on the assets the debtor owns. Now, if the IRS has done so, then the lien survives bankruptcy,
which means that the government may still seize property to collect the discharged tax debts; - debtors didn't file bankruptcy fraudulently or try to evade paying their taxes;
- the tax return was due more than three years ago; and
- tax deficiencies that were assessed on prior returns were assessed at least 240 days prior to the filing of the bankruptcy.
On the other hand, if the bankruptcy filed by the debtor is Chapter 13, the tax liability will be included in the Chapter
13 Payment plan approved for the debtor, and the IRS will simply be paid along with other creditors as part of the
debtor’s repayment plan.
Q71: What is Community Property?
A: There are nine community property states in the United States. They are: Arizona, California, Idaho, Louisiana,
Nevada, New Mexico, Texas, Washington and Wisconsin. The Commonwealth of Puerto Rico is also a community
property jurisdiction.
Generally, the property ownership rule in such states or jurisdictions, is that all property that have been acquired
during the marriage, other than property gotten by gift or inheritance, are deemed COMMUNITY PROPERTY. That is,
that even if one spouse actually earns all the money to acquire such property during the period of the marriage, all
such property is still to be considered to community property, regardless. The general underlying theory which
operate in the property laws of these states, is that both spouses contribute EQUALLY to and in the marriage, that all
property acquired during marriage is the result of the combined efforts of both spouses, and that thus, the spouses
should equally own all community property on a 50-50 basis between the husband and the wife.
Q72: What is "Equitable Distribution"?
A: Most states employ the "equitable distribution" (also called “common law”) principle in distribution of property
between marital partners – i.e., in dividing up marital property in divorce or dissolution of marriage situations. Under
the equitable distribution principle, the basic approach is to take a close look at the financial situation that each
spouse will be in after the termination of the marriage, taking into consideration certain various specified factors, and
then apportion marital property based on such consideration, clearly making equitable distribution more flexible than,
say, community property distribution principle. Factors that are considered in deciding equitable distribution, include,
among others:
- The Earning power of each of the spouses, as one spouse’s earning power may often be much greater than the other’s
- Separate property of the spouses, and their values
- Has one spouse or the other possibly done all or most of the work to acquire the property
- Has one spouse or the other possibly done all or most of the work to acquire the property
- The value that one spouse contributed as the home-maker for the family
- Possible use of spousal abuse or marital infidelity, if and where applicable in the marriage, to award less favorable distribution of
property to, or otherwise penalize, the spouse deemed at fault - Economic fault of one spouse in wasting and dissipating marital property
- Duration of the marriage
- Age and relative health of the spouses
- If children apply, the assessed responsibility for providing for children of the marriage
Q73: What's the Difference Between Secured and Unsecured Debt?
A: Secured debts are secured by a lien of some type on your property, either by an agreement or involuntarily with a
court judgment or taxes. Unsecured debts are not connected to any type of property. A car loans and mortgages are
examples of secured debts, while credit cards and signature loans are unsecured debts.
Q74: How Long Does a Bankruptcy Stay on My Credit Report?
A: A bankruptcy can stay on your credit report for up to 10 years. Keep in mind: in many cases, filing bankruptcy winds
up improving a person's credit.
Q75: Can I Remove a Bankruptcy from my Credit Report?
A: No. However, you can file an explanation with the credit bureaus briefly describing the cause of your bankruptcy.
Q76A: What is the so-called Means Test, and how do I determine whether I will be allowed to use Chapter 7
bankruptcy?
A: Basically, here's the simple preliminary formula to start with. For a debtor, you simply calculate the monthly income
(gross) of any and all kinds that you made over the 6 months (the whole 6 months period) preceding the month in
which you file (or will file) for bankruptcy - i.e., you will TOTAL up all of that, and divide it by 6. Then see if that figure is
LESS than your state's MEDIAN monthly income for a person in your family size. (For a 1-person household, for
example, for persons resident in New York, the yearly MEDIAN income is $54,397). If that earned monthly income
figure is LESS than the applicable state's monthly median income, then that basically means that you "passed" the
means test, and in that event it's essentially "presumed" that you qualify to file Chapter 7 without much problem or
question.
Information on median income for debtors for each state can be gotten here: www.usdoj.
gov/ust/eo/bapcpa/bci_data/median/_income_table.html
Now, if you're married and filing joint bankruptcy, you should calculate all income for both parties; you should include
all types of income (except for and social security retirement receipts, social security disability insurance or
supplemental security income, temporary assistance for needy families (Welfare), and possibly state unemployment
insurance benefits).
Q76B: NOW, what happens if your income is in EXCESS of your state's median income?
A: In such a case, then you'll really NEED to (you MUST) take the real means test (meaning doing a bunch of
arithmetical calculations dealing with your earnings status), and this test is really the one that will determine whether
it will be "presumed" by the court that your filing for Chapter 7 bankruptcy, if you were to do so, is "abusive" - that is,
that it is fraudulent and therefore would not be permissible by the court.
Q76C: The actual Means Test
A: Now, if (from your calculations above) your monthly income is immediately LESS than your state's monthly median
income, and so you're immediately allowable to file for chapter 7 and do not take or need to take the actual means
test, or, if you're required to take the means test and you took it and passed it, that all mean you're considered NOT
to have enough "disposable income" to be able to afford funding a Chapter 13 Repayment plan to pay back your
creditors anything if one were to be proposed for you. Meaning, that in either case, you've passed the first major
eligibility hurdle you can possibly encounter in being able to file Chapter 7 bankruptcy!
If you're required to take the means test and you took it and FLUNKED it, that means you're considered to have enough "disposable
income" to be able to afford funding a Chapter 13 Repayment plan to pay back your creditors something, if an appropriate plan is crafted
and proposed. Meaning, that this debtor can only file Chapter 13.
Basic Bankruptcy Qs & As
Q1: I Hear that attorneys charge way too high
a fee for bankruptcy. How Does Your price for
bankruptcy compare with the prices charged
by attorneys?
A: Not even any where close, at all, really. But, just to give
something of an idea, for our Full Service bankruptcy work
involving the preparation of all the legal forms and paperwork
required to make a bankruptcy filing, Afford-Bankruptcy.Com’s
charge for that is a ONE PAYMENT ONLY amount of $239 for
Chapter 7, and $359 for Chapter 13. A typical lawyer’s
estimated average charge for a “routine” Chapter 7 of the simplest kind, is $2,000 - $2,500; and for Chapter 13,
it is around $4,000 - 4,500, according to various independent experts. And there are a lot more differences
involved between the two on the issue of prices.
For example, note that Afford-Bankruptcy’s price strictly follow an honest, upfront pricing that’s based ONLY on
“per project,” rather than on “per hour.” (The attorneys’ charge on “per hour” hourly rate, was given as $228 (per
hour) for their services in 2002, according to a respected independent research study, the 2002 Survey of Law
Firm Economics, made by Altman Weil Pensa Publication). For us, however, the price we state to you here is
the ONLY charge that Afford-Bankruptcy itself will collect from you for this procedure, and NOT a penny more for
it.
[See this PAGE for a lot more on the price and other differences enjoyed by the AFFORD-
BANKRUPTCY.COM ADVANGTAGE over lawyer's services ]
Q2: What Would It Take For Me To Be Able To Take Advantage of The Tremendous
Afford-Bankruptcy Advantage to File for Bankruptcy?
A: Here's the simple test: take some moments and some time, first to inform and educate yourself on some
of the essential basics of bankruptcy and bankruptcy filing. And then if you feel (AFTER that) that you’re eligible
– and ready – to file for bankruptcy, following that, get back to us and register for our service. Here’s what you
can do (among any other things you may prefer or think of) to get some of this preliminary information and
education you need. YOU MAY READ the following information that's provided in this website:
Either one of the handbooks, How to File Chapter 7 Bankruptcy Yourself, Without the Lawyer’s Fees, OR How to
File For Chapter 13 Bankruptcy Yourself, Without the Lawyer’s Fees. (Click HERE to order). (Note that if you
purchase and read either one of these titles from us and register with us for the Full Service document
preparation service, you’ll be given credit – full deduction – for the money you paid for the manual, so you still
stand to gain by that);
Armed with this kind of important basic information, you would have been in a position, YOURSELF, to
have an answer for one basic question (among others): ARE YOU ELIGIBLE TO FILE, AND IF SO, FOR
WHICH TYPE OF BANKRUPTCY- Chapter 7, 13 or what?
Q1: I Hear that attorneys charge way too high
a fee for bankruptcy. How Does Your price for
bankruptcy compare with the prices charged
by attorneys?
A: Not even any where close, at all, really. But, just to give
something of an idea, for our Full Service bankruptcy work
involving the preparation of all the legal forms and paperwork
required to make a bankruptcy filing, Afford-Bankruptcy.Com’s
charge for that is a ONE PAYMENT ONLY amount of $239 for
Chapter 7, and $359 for Chapter 13. A typical lawyer’s
estimated average charge for a “routine” Chapter 7 of the simplest kind, is $2,000 - $2,500; and for Chapter 13,
it is around $4,000 - 4,500, according to various independent experts. And there are a lot more differences
involved between the two on the issue of prices.
For example, note that Afford-Bankruptcy’s price strictly follow an honest, upfront pricing that’s based ONLY on
“per project,” rather than on “per hour.” (The attorneys’ charge on “per hour” hourly rate, was given as $228 (per
hour) for their services in 2002, according to a respected independent research study, the 2002 Survey of Law
Firm Economics, made by Altman Weil Pensa Publication). For us, however, the price we state to you here is
the ONLY charge that Afford-Bankruptcy itself will collect from you for this procedure, and NOT a penny more for
it.
[See this PAGE for a lot more on the price and other differences enjoyed by the AFFORD-
BANKRUPTCY.COM ADVANGTAGE over lawyer's services ]
Q2: What Would It Take For Me To Be Able To Take Advantage of The Tremendous
Afford-Bankruptcy Advantage to File for Bankruptcy?
A: Here's the simple test: take some moments and some time, first to inform and educate yourself on some
of the essential basics of bankruptcy and bankruptcy filing. And then if you feel (AFTER that) that you’re eligible
– and ready – to file for bankruptcy, following that, get back to us and register for our service. Here’s what you
can do (among any other things you may prefer or think of) to get some of this preliminary information and
education you need. YOU MAY READ the following information that's provided in this website:
Either one of the handbooks, How to File Chapter 7 Bankruptcy Yourself, Without the Lawyer’s Fees, OR How to
File For Chapter 13 Bankruptcy Yourself, Without the Lawyer’s Fees. (Click HERE to order). (Note that if you
purchase and read either one of these titles from us and register with us for the Full Service document
preparation service, you’ll be given credit – full deduction – for the money you paid for the manual, so you still
stand to gain by that);
- The Document titled “Disclosures” on this website. (Basically Notices 1, 2 & 3 therein)
- The Informational material, “Some Preliminary Background/Study Information” on this site
- The Informational Material BASIC BANKRUPTCY QUESTIONS herein on this site ( this Page).
- Any other materials – on this site or elsewhere – that would have properly informed and educated you,
on what bankruptcy is all about.
Armed with this kind of important basic information, you would have been in a position, YOURSELF, to
have an answer for one basic question (among others): ARE YOU ELIGIBLE TO FILE, AND IF SO, FOR
WHICH TYPE OF BANKRUPTCY- Chapter 7, 13 or what?
YOU MAY LINK YOUR SITE TO THIS SITE, BUT DO NOT PLAGIARIZE.
Copyrights ©1996 - 2009 by Affordablelaws.net, Afford-Bankruptcy.com. All rights reserved.
ALL material and contents on this web Page (as well as in ALL the other like pages in this website), are a somewhat
detailed LIBRARY of credit and bankruptcy laws and information primarily intended for the general information and
enlightenment of visitors to this site, and our customers and the American consumer on the subject matter of personal credit
and bankruptcy.
No part of any materials and contents may be copied, photocopied, reproduced, published, posted, translated or reduced to
any electronic medium or machine-readable form whatsoever, in whole or in part, or be otherwise used, without the specific
written permission and authorization of the Site’s Director. Afford-Bankruptcy.com reserves the absolute rights to prosecute
any and all person(s) or entities, to the fullest extent of the law, who steal or plagiarize our contents or material or otherwise
infringe upon any rights hereto in any manner whatsoever. NOTE also, that when you read or use this site, you are doing so
solely and only with the understandings and agreement contained in these TERMS OF USE.
LEGAL DISCLAIMER
The material and contents on this web Page, and on ALL the other like pages in this website (including every other law-
related informational material in this whole website), are a somewhat detailed LIBRARY of credit and bankruptcy laws and
information, and are primarily intended for the general information of visitors to this site, and our customers and the
American consumer, for their general education and enlightenment on the subject matter of personal credit and bankruptcy.
It is NOT intended, however, as - nor should any reader of any kind or nature at all ever deem or conceive it in any way, shape
or form whatsoever, to be - legal advice on credit or bankruptcy or any other matter, concerning his or own her particular or
specific financial, credit or legal needs or problems relative to bankruptcy. If you (any reader herein) need any such or other
legal advice, you should consult a competent attorney skilled and knowledgeable in those matters. For the most complete
information relating to this, please FIRST read our Full TERMS & CONDITION OF USE of this Website
See Full TERMS & CONDITIONS OF USE OF THIS WEBSITE.
| ANY QUESTIONS ON BANKRUPTCY? GEE, WE PROBABLY MAY HAVE ALREADY HAVE YOU COVERED! Some Typical, Frequently Asked Questions (FAQs) by Debtors, and Questions that Debtors and BANKRUPTCY-SEEKERS May Typically Ask. |
| Your Every Question (or Almost) on Bankruptcy Filing, Answered. |
YOU MAY LINK YOUR SITE
TO THIS PAGE & SITE, BUT
DO NOT STEAL or
PLAGIARIZE.
Copyrights ©1996 - 2009 by
Affordablelaws.net, Afford-
Bankruptcy.com. All rights
reserved. ALL material and
contents on this web Page (as
well as in ALL the other like pages
in this website), are a somewhat
detailed LIBRARY of credit and
bankruptcy laws and information
primarily intended for the general
information and enlightenment of
visitors to this site, and our
customers and the American
consumer on the subject matter of
personal credit and bankruptcy.
No part of any materials and
contents may be copied,
photocopied, reproduced,
published, posted, translated or
reduced to any electronic medium
or machine-readable form, in
whole or in part, or otherwise
used, without the specific written
permission and authorization of
the Site’s Director. Afford-
Bankruptcy.com reserves the
absolute rights to prosecute any
and all person(s) or entities, to
the fullest extent of the law, who
steal or plagiarize our contents
or material or otherwise infringe
upon any legal rights hereto in
any manner. NOTE also, that
when you read or use this site, you
are doing so solely and only with
the understandings and
agreement contained in these
TERMS OF USE.
TO THIS PAGE & SITE, BUT
DO NOT STEAL or
PLAGIARIZE.
Copyrights ©1996 - 2009 by
Affordablelaws.net, Afford-
Bankruptcy.com. All rights
reserved. ALL material and
contents on this web Page (as
well as in ALL the other like pages
in this website), are a somewhat
detailed LIBRARY of credit and
bankruptcy laws and information
primarily intended for the general
information and enlightenment of
visitors to this site, and our
customers and the American
consumer on the subject matter of
personal credit and bankruptcy.
No part of any materials and
contents may be copied,
photocopied, reproduced,
published, posted, translated or
reduced to any electronic medium
or machine-readable form, in
whole or in part, or otherwise
used, without the specific written
permission and authorization of
the Site’s Director. Afford-
Bankruptcy.com reserves the
absolute rights to prosecute any
and all person(s) or entities, to
the fullest extent of the law, who
steal or plagiarize our contents
or material or otherwise infringe
upon any legal rights hereto in
any manner. NOTE also, that
when you read or use this site, you
are doing so solely and only with
the understandings and
agreement contained in these
TERMS OF USE.
| Over 9,300 + Successful Bankruptcy Assists to Happy Debtors Since 1996, and Counting! |
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Q77: YOUR BEST PROTECTION - How we, at the Afford-Bankruptcy.com, are Regulated by the Courts
& the Government to Protect YOU
A: As you well might have known by now (see this page on this site for more on that), we are a Federal DEBT RELIEF AGENCY or
Bankruptcy Petition Preparers (BPP) which is authorized under the Federal Bankruptcy Code or Law to do what we do for debtors
needing affordable debt relief aid to file bankruptcy.
Debtors and customers who eventually hire us to do their bankruptcy paperwork for them (using the so-called FULL SERVICE option),
are often concerned, usually before they settle on us as the Company to hire - and rightly so, too - about how they can assure that
they're hiring the right or reliable debt relief company, and how they can be sure that they are protected from mistakenly hiring some
unreliable, scam operations who may not do the work they promise, and may therefore cause them to wind up being cheated out of
the hard-earned fees they paid such a company! And who can blame them for feeling that way, with the stories you hear so often
these days about many fly-by-night, scam operations on the Internet!
And hence, consumers often wonder how best to do it (to protect themselves). It is, maybe, by checking with the Better Business
Bureau? With the State Attorney General? The local Chambers of Commence, or what have you?
Well, you are welcome to try any and all of that, as anything could help. (If you were to check out our name with, say, the BBB, for
example, you'll most likely find NOTHING negative on record on us, since we've had an absolutely CLEAN record; and that's not a
small thing at all to know about a company, of course!). But, actually, as far as this business of debt relief assistance in particular is
concerned, we at Afford-Bankruptcy.Com have found that there is really just ONE simple method that's almost fool-proof, that's
created BY LAW, which turns out to be the very best protection that a debtor could possibly have against a cheating, no-good,
unscrupulous Debt Relief Agency or BPP. And what is? It is simply the strict, and elaborate set of rules and regulations that the U.S.
Bankruptcy Code itself has on the books that strictly regulate the way those companies do business and almost guarantees against
such companies cheating innocent debtors and getting away with it.
Summed up very simply, under the current 2005 bankruptcy law, a Debt Relief Agency or BPP (like the www.Afford-Banruptcy.Com, for
example, among some others), may:
What better, stronger, and easier PROTECTIONS can you possibly have, as a debtor, eh - against a scammy, cheating or no-good
debt relief agency!
That's why, here at AFFORD-BANKRUPTCY.COM, WE'VE ALWAYS GOT NOTHING - ABSOLUTELY NOTHING - TO WORRY ABOUT! We
simply took a POLICY DECISION, right from the very beginning, that the best - and most 'profitable' - way to do business, is simply
to give our clients the most HONEST and most RELIABLE service that we can give them! And this way, EVERYBODY is happy, and
no one gets into any trouble with anyone. Hence, we've ALWAYS made out with our thousands of customers and clients just fine!
ALWAYS!
See details of the federal bankruptcy law and the extensive restrictions it imposes on the debt relief agencies HERE. http:
//uscode.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000110----000-.html
Q78: What would be my total out-of-pocket bankruptcy cost using the Afford-Bankruptcy.Com?
A: First, get this clear. There is a fee to file a bankruptcy petition --- the FILING fees. The amount varies depending on which chapter
of bankruptcy (chapter 7, 11, 12 or 13) you are filing.
The basic costs for your bankruptcy filing
Basically, using our services (FULL SERVICE) for your bankruptcy filing, this is what would roughly be your TOTAL ball park figure of
what it would cost you:
1. $239 --- the charge, for CHAPTER 7 Bankruptcy, that you pay to the Afford-Bankruptcy.Com staff for doing ALL the necessary papers
for you. (It is $349, if it is Chapter 13 Bankruptcy).
2. $30 to $50 or so --- the CREDIT COUNSELING fee you'll pay to the counseling agency. The exact amount you pay on this would
depend on what state you're located. Get the exact amount you'll pay at this site: www.usdoj.gov/ust Click: "Credit Counseling & Debtor
Education." This site contains list of the agencies approved by the government to provide this service.
3. $299 --- the court FILING FEE for Chapter 7 Bankruptcy. You'll have to pay this DIRECTLY to the Court Clerk's office to file the papers
at the time of filing. (It's $274, if it is Chapter 13 Bankruptcy).
4. $40 to $70 or so --- the Financial Management fee you'll need to pay to the agency that conducts this course in your area. This will
need to be paid towards the end of the bankruptcy. Get the exact amount you'll pay at this same site: www.usdoj.gov/ust. Click:
"Financial Management & Debtor Education."
Can you avoid paying these fees?
A case can be dismissed for failure to pay the filing fee. Generally, this fee cannot be waived (or, more correctly stated, true there is a
provision under the law to get it waived, but in practice it is hard to get the judge to grant you a waive for it). To get the fee WAIVED
altogether, YOU (the debtor) will usually apply especially to the court for a waiver (by filing a form, Form 3B) that asks a lot of questions
about your financial status and why you think you qualify to be granted a waiver, etc. Then, you'll have to appear before a judge and
justify your request in a hearing. NOTE: Because of all the hassles involved in getting a waiver for the filing fees, most debtors just opt
to find a way to pay the fees whichever way they can!
The FILING fee is due at the time the bankruptcy petition is filed. Now, if an individual debtor (but not a corporation or partnership) is
really unable to pay the full fee at the time of filing, there is really ONE realistic option that's available which he/she can use to take
care of that. He may apply with the Court Clerk’s office, at the same time that the petition papers are filed, to pay that fee on
INSTALLMENT payment basis. The form to make this application is available from the Clerk's Office. (The AFFORD-BANKRUPTCY.
COM staff will provide you the necessary forms and information to do this).
NOTE: Experts say that even if you happen to choose this option to pay by installment, that it will still serve you better if you try and pay
a minimum of, say, $50 at the time you bring your paperwork to the court for filing, and make sure you pay up the remainder of the fee
in monthly installments within three months. (Not paying up this money, or paying it up on time, has been known to be the cause
which lead to the dismissal of many bankruptcy cased filed by debtors).
& the Government to Protect YOU
A: As you well might have known by now (see this page on this site for more on that), we are a Federal DEBT RELIEF AGENCY or
Bankruptcy Petition Preparers (BPP) which is authorized under the Federal Bankruptcy Code or Law to do what we do for debtors
needing affordable debt relief aid to file bankruptcy.
Debtors and customers who eventually hire us to do their bankruptcy paperwork for them (using the so-called FULL SERVICE option),
are often concerned, usually before they settle on us as the Company to hire - and rightly so, too - about how they can assure that
they're hiring the right or reliable debt relief company, and how they can be sure that they are protected from mistakenly hiring some
unreliable, scam operations who may not do the work they promise, and may therefore cause them to wind up being cheated out of
the hard-earned fees they paid such a company! And who can blame them for feeling that way, with the stories you hear so often
these days about many fly-by-night, scam operations on the Internet!
And hence, consumers often wonder how best to do it (to protect themselves). It is, maybe, by checking with the Better Business
Bureau? With the State Attorney General? The local Chambers of Commence, or what have you?
Well, you are welcome to try any and all of that, as anything could help. (If you were to check out our name with, say, the BBB, for
example, you'll most likely find NOTHING negative on record on us, since we've had an absolutely CLEAN record; and that's not a
small thing at all to know about a company, of course!). But, actually, as far as this business of debt relief assistance in particular is
concerned, we at Afford-Bankruptcy.Com have found that there is really just ONE simple method that's almost fool-proof, that's
created BY LAW, which turns out to be the very best protection that a debtor could possibly have against a cheating, no-good,
unscrupulous Debt Relief Agency or BPP. And what is? It is simply the strict, and elaborate set of rules and regulations that the U.S.
Bankruptcy Code itself has on the books that strictly regulate the way those companies do business and almost guarantees against
such companies cheating innocent debtors and getting away with it.
Summed up very simply, under the current 2005 bankruptcy law, a Debt Relief Agency or BPP (like the www.Afford-Banruptcy.Com, for
example, among some others), may:
- not fail to perform any service the agency or its personnel informed you (they're required to sign a written contract with you) that
it would perform in connection with your bankruptcy case or paperwork; - still be liable to you for any fees or costs you pay them if the agency negligently or intentionally fails to do its contracted job for
you, or to comply with any of the many restrictions, which are stringent and many, that are imposed on the debt relief agencies,
and - have the Courts and the judges, themselves,usually enforce on the bankruptcy agency, on your (the debtor's) behalf, those
restrictions, or have them recover the fees, impose fines or penalties on the agency, etc., as may be necessary in a given case.
What better, stronger, and easier PROTECTIONS can you possibly have, as a debtor, eh - against a scammy, cheating or no-good
debt relief agency!
That's why, here at AFFORD-BANKRUPTCY.COM, WE'VE ALWAYS GOT NOTHING - ABSOLUTELY NOTHING - TO WORRY ABOUT! We
simply took a POLICY DECISION, right from the very beginning, that the best - and most 'profitable' - way to do business, is simply
to give our clients the most HONEST and most RELIABLE service that we can give them! And this way, EVERYBODY is happy, and
no one gets into any trouble with anyone. Hence, we've ALWAYS made out with our thousands of customers and clients just fine!
ALWAYS!
See details of the federal bankruptcy law and the extensive restrictions it imposes on the debt relief agencies HERE. http:
//uscode.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000110----000-.html
Q78: What would be my total out-of-pocket bankruptcy cost using the Afford-Bankruptcy.Com?
A: First, get this clear. There is a fee to file a bankruptcy petition --- the FILING fees. The amount varies depending on which chapter
of bankruptcy (chapter 7, 11, 12 or 13) you are filing.
The basic costs for your bankruptcy filing
Basically, using our services (FULL SERVICE) for your bankruptcy filing, this is what would roughly be your TOTAL ball park figure of
what it would cost you:
1. $239 --- the charge, for CHAPTER 7 Bankruptcy, that you pay to the Afford-Bankruptcy.Com staff for doing ALL the necessary papers
for you. (It is $349, if it is Chapter 13 Bankruptcy).
2. $30 to $50 or so --- the CREDIT COUNSELING fee you'll pay to the counseling agency. The exact amount you pay on this would
depend on what state you're located. Get the exact amount you'll pay at this site: www.usdoj.gov/ust Click: "Credit Counseling & Debtor
Education." This site contains list of the agencies approved by the government to provide this service.
3. $299 --- the court FILING FEE for Chapter 7 Bankruptcy. You'll have to pay this DIRECTLY to the Court Clerk's office to file the papers
at the time of filing. (It's $274, if it is Chapter 13 Bankruptcy).
4. $40 to $70 or so --- the Financial Management fee you'll need to pay to the agency that conducts this course in your area. This will
need to be paid towards the end of the bankruptcy. Get the exact amount you'll pay at this same site: www.usdoj.gov/ust. Click:
"Financial Management & Debtor Education."
Can you avoid paying these fees?
A case can be dismissed for failure to pay the filing fee. Generally, this fee cannot be waived (or, more correctly stated, true there is a
provision under the law to get it waived, but in practice it is hard to get the judge to grant you a waive for it). To get the fee WAIVED
altogether, YOU (the debtor) will usually apply especially to the court for a waiver (by filing a form, Form 3B) that asks a lot of questions
about your financial status and why you think you qualify to be granted a waiver, etc. Then, you'll have to appear before a judge and
justify your request in a hearing. NOTE: Because of all the hassles involved in getting a waiver for the filing fees, most debtors just opt
to find a way to pay the fees whichever way they can!
The FILING fee is due at the time the bankruptcy petition is filed. Now, if an individual debtor (but not a corporation or partnership) is
really unable to pay the full fee at the time of filing, there is really ONE realistic option that's available which he/she can use to take
care of that. He may apply with the Court Clerk’s office, at the same time that the petition papers are filed, to pay that fee on
INSTALLMENT payment basis. The form to make this application is available from the Clerk's Office. (The AFFORD-BANKRUPTCY.
COM staff will provide you the necessary forms and information to do this).
NOTE: Experts say that even if you happen to choose this option to pay by installment, that it will still serve you better if you try and pay
a minimum of, say, $50 at the time you bring your paperwork to the court for filing, and make sure you pay up the remainder of the fee
in monthly installments within three months. (Not paying up this money, or paying it up on time, has been known to be the cause
which lead to the dismissal of many bankruptcy cased filed by debtors).