Dallas, TX Bankruptcy FAQ’s
Attorney John F. Williams, Jr. lists some of the most common questions regarding bankruptcy.
My Plano TX Bankruptcy Law Offices have compiled some common questions clients ask regarding bankruptcy. These are not all of the questions. General topics have been chosen as each case differs depending on your situation. Once I meet with you, we will determine whether bankruptcy is right or wrong for your particular case.
What are the advantages of Chapter 7 bankruptcy?
After your bankruptcy is discharged, your qualifying debts are erased and you are no longer responsible for them.
Which bankruptcy is the least expensive?
Chapter 7 is the least expensive because you don't have to pay off the debts. The next least expensive is Chapter 13 where you repay about 10 to 20 cents on each dollar of debt.How long will it take before my debts are discharged?
Chapter 7 usually takes between 3 to 8 months. Chapter 13 can take several months while trying to get your repayment plan approved. However, the actual discharge is not final until you've met the payment plan requirements. Completion can last from 36 to 60 months.
If I change my mind after filing, can I stop the bankruptcy?
Only the judge will decide if it may be dismissed. Even if it gets dismissed your credit report will still show that you filed.What about my credit?
Bankruptcy will show up on your credit report. All lenders & creditors will know.How long do I have to wait to rebuild my credit?
You can start immediately or during the bankruptcy with a secured loan or secured credit card. You can even obtain these items while going through the bankruptcy process.
I thought bankruptcy stopped foreclosure. Will they get my house?
When you file bankruptcy, you receive an "automatic stay" on court actions such as foreclosures and sheriff's sales. A creditor can still go into court and ask the bankruptcy judge for a "relief from stay," and if granted the creditor can proceed with court action to foreclose.Can all my debts be discharged in bankruptcy?
No, not all debts qualify for liquidation. There are exemptions. Depending on your circumstances, bankruptcy may or may not make sense for you. We will determine if you will be better or worse off after bankruptcy.What debts can’t be discharged in bankruptcy?
- Liens, such as mortgages and security interests in cars are non-dischargeable, as are some other types of obligations including federal, state and local tax claims (subject to specific time rules)
- Customs duties
- Spousal and child support
- Most student loans
- Secured debts
- Fines and penalties imposed by government agencies
- Debts incurred due to false statements made with the intent to deceive
- Fraud committed in a fiduciary capacity, such as embezzlement or larceny
- 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 is one that will survive the bankruptcy proceeding. The debtor still has the obligation to pay this debt. The creditor has every right to collect.
We offer a COMPLIMENTARY CONSULTATION with our firm to discuss all of your options. It is important that all of our clients make intelligent and informed decisions after reviewing both non-bankruptcy and bankruptcy options.
For those individuals or families that need to file, they will benefit from our experience of having successfully filed thousands of cases under Chapter 7 and Chapter 13 of the United States Bankruptcy Code. Call the Bankruptcy Law Offices of John F. Williams, Jr. today and we look forward to helping you get a fresh start on life.
