Bankruptcy

Q: Do I still have to pay for my house/car?

Yes. You are required to continue making the payments on your home and car loans if you are intending on keeping them. In other words, you don’t get a free house or car when you file for bankruptcy.

Q: Can I keep my retirement in a bankruptcy?

Yes. In both a Chapter 7 and Chapter 13 bankruptcy you are able to keep your entire retirement as it is exempt property under the bankruptcy code.

Q: Does my spouse have to file bankruptcy with me?

No. Married couples are not required to file a bankruptcy together but may choose to do so if it is in their best interest.

Q: How will bankruptcy affect my spouse’s credit?

It won’t. Your bankruptcy typically will not affect your spouse’s credit unless your spouse files with you. Married couples are not required to file a bankruptcy together but may choose to do so.

Q: What property of mine can the court take in a bankruptcy?

The court can take all property you are not allowed to keep under the Bankruptcy Code. Most frequently, the court will take extra vehicles, large sums of money such as tax refunds or inheritances, and excess jewelry or property.

Q: Can I discharge tax liability?

You can discharge some but not all tax liability. It is based on when the taxes came due, when the returns were filed and when the taxes were assessed. Each case is different, and you need to talk to an attorney to see how these rules will apply to your unique case. Be careful, not all attorneys understand the nuances to the issue of tax liability.

Q: Can I keep my tax refunds?

Possibly. Every bankruptcy case is different and has its own set of circumstances that are used to determine whether you can keep your tax refund or not. When you file your taxes and when you file your bankruptcy can make a difference. The amount of your tax refund can make a difference as well.

Q: How do I find out who I owe money to?

You can find out who you owe money to by looking at your credit report and collecting all of the bills that are sent to you. It is a good idea to start saving bills a couple of months before filing bankruptcy to be sure that all of your creditors are included. If you become aware of more creditors after the bankruptcy is filed there are options for including them. Medical bills are tricky and often do not show up on a credit report. Try to remember any medical providers that you have had to make sure that they are included.

Q: What debts are dischargeable?

Dischargeable debts are debts that can be discharged through a bankruptcy proceeding. This means that once you receive a discharge, you will no longer be responsible for these debts. Some examples of dischargeable debts include: medical billscredit card bills, personal loans, past-due utility bills/rent, civil court judgements, auto accident claims and repossession deficiency balances.