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1. Should you file bankruptcy?

  To determine whether filing bankruptcy may be prudent in your situation, you should consider
the following factors:
  •        Is the amount of debt that you have more than 25% of your gross income?
  •        Are you merely making the minimum monthly payments on your credit cards?
  •        Are you borrowing from one credit card to pay another?
  •        Have you missed any payments?
  •        Are creditors calling you?
  •        Are you receiving letters from your creditors?
  •        Are you being sued?
  •        Are you being garnished?
  •        Are you behind in paying your mortgage or rent?
  If you answered yes to any of these questions you should consider the option of filing for
bankruptcy. During our free consultation we will be able to provide you with your options, which
may or may not include bankruptcy.

2. What is the Bankruptcy Code?

  Title 11 of the United States Code is that body of federal law which controls the filing of
bankruptcy petitions and the administration of the subsequent bankruptcy cases. The adjudication
of issues that relate to the Bankruptcy Code is performed by the Bankruptcy Court. A copy is
available for viewing in the public information areas of the Clerk's Office in each division. It is also
available in legal libraries. Additionally, it may be purchased from the Government Printing Office or
any legal stationery store.

3. What is the difference between the Chapters of the Bankruptcy Code?

  Chapter 7: Often called the "liquidation" or "straight" bankruptcy, chapter 7 is primarily used by
individuals who wish to free themselves of debt simply and inexpensively, but may also be used by
businesses that wish to liquidate and terminate their business.

  Chapter 11: Often called the "reorganization chapter," chapter 11 allows corporations,
partnerships, and individuals to reorganize, without having to liquidate all assets. In filing a
chapter 11, the debtor presents a plan to creditors which, if accepted by the creditors and
approved by the Court, will allow the debtor to reorganize personal, financial or business affairs
and again become a financially productive individual or business.

  Chapter 13: An individual with a regular income who is overcome by debts, but believes such
debt can be repaid in full or part within a reasonable period of time, may file under chapter 13 of
the Bankruptcy Code. Chapter 13 permits the debtor to file a 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.

4. What are the consequences of filing for bankruptcy?

  Depending on a debtor's financial situation and reasons for filing, the consequences of filing for
bankruptcy protection may outweigh the benefits. It is best to discuss the advantages and
disadvantages of filing for bankruptcy with an attorney prior to filing.

5. How much are the filing fees?

  Excluding and in addition to legal fees, the filing fee for a Chapter 7 is $299.00, for a Chapter 11
is $1,039.00, and for a Chapter 13 is $274.00.

6. What kinds of debts are not dischargeable?

  A Discharge forgives the debtor of a specific debt, but not all debts are dischargeable. Some
examples of non-dischargeable debts are: Spousal and child support obligations, most tax debts,
and most educational loans. Also, businesses filing chapter 7 are not eligible for a discharge. Limits
are set on the amount of unsecured debt that is dischargeable.
  The discharge prohibits any attempt to collect from the debtor a debt that has been discharged.
Secured creditors retain some rights which may permit them to seize property, even after a
discharge is granted. Please refer to 11 U.S.C. Section 523 of the United States Code for further
information.

7. What is the automatic Stay?

  The filing of a bankruptcy petition will generally stop (i.e., automatically stay) most actions by a
creditor against the debtor or the debtor's property for the duration of the bankruptcy case.
However, if a Motion for Relief from the Automatic Stay is filed by the creditor and is granted by the
bankruptcy judge then the automatic stay will be either lifted or altered for the party filing the
Motion.

8. What is a 341(a) meeting?

  This meeting is presided over by either the trustee assigned to the case or the U. S. Trustee and
is held approximately 40 days after the new petition is filed. The Debtor's first duty to appear and
testify under oath and to be questioned by creditors occurs at the 341(a) meeting. Failure by the
Debtor to attend the 341(a) meeting in person may result in the dismissal of the case.

9. What is the function of Office of the U. S. Trustee?

  The Office of the U. S. Trustee is an Executive Branch agency that is part of the Department of
Justice. Its responsibilities include monitoring the administration of bankruptcy cases and detecting
bankruptcy fraud. It is also responsible for appointing interim trustees to administer Chapter 7
cases from a previously appointed panel of private individuals, lending support to and overseeing
the Debtor in Possession in Chapter 11 cases, and appointing a standing trustee in Chapter 13
cases.

10. Can you keep your credit cards and loans?

  When you file for a Chapter 7 bankruptcy, you list all creditors to whom you owe money. If you
do not owe money on a credit card, you do not list it in your bankruptcy petition. On credit cards
and loans where you do owe money, it is possible to keep these items by reaffirming them. A
reaffirmation is an agreement that is signed by you, your creditor,   and your attorney which is filed
with the Bankruptcy Court. The reaffirmation agreement says that you may keep your credit card
or loan and that you will continue to be responsible for paying it. It is not usually a good idea to
reaffirm a credit card. Reaffirmations are usually reserved for car loans or mortgages.

11. Can you rebuild your credit after filing for bankruptcy?

  If you have been late in making payments on your credit cards that fact will be reported to the
credit reporting agencies and stay on your credit report for seven years. If a creditor gets a
judgment against you, this may stay on your credit report for up to twenty years. If you file
bankruptcy, this will stay on your credit report for ten years.
   Filing bankruptcy could be your first step in rebuilding your credit. Once you have eliminated
your debts by filing bankruptcy you need not wait ten years to reestablish your credit. Once you
are discharged in bankruptcy, you should obtain a secured credit card. This is a type of card in
which you keep a savings account with a bank, and the bank issues you a MasterCard or Visa
Card. You use this card as you would use any other card. The only difference is that if you do not
make your payments as required, the bank that issued the card may take the money from your
savings account. You may also rebuild your credit by obtaining credit with another person as a
cosigner.
   There is no set time in which to reestablish your credit. In large part it will depend on you. If you
have enough income and use your credit wisely, the fact that you were discharged in bankruptcy
should become less of an issue as time goes on. Once a year or two has passed, if you have
enough income it may be possible to buy a car or house.

12. After the bankruptcy is final, may I have a bank account? What if I inherit a fortune or win
lotto?

  After you receive your discharge you may go on and live your life as if you had never filed
bankruptcy. You may have a bank account, inherit property, and if you are so fortunate, win the
lottery. It will all belong to you.

13. Will the bankruptcy stop my creditors from harassing me?

  Once you retain us, you may have your creditors contact us. Once they learn that we are
representing you, they will probably let you alone. Once we file your petition with the Bankruptcy
Court, creditors are not allowed to take any further action against you without getting permission
from the Bankruptcy Court.

14. Will the bankruptcy stop a creditor from garnishing my salary or taking money from my
bank account?

  The moment we file your petition with the Bankruptcy Court there is an automatic stay and any
garnishment must immediately cease. If any money is taken from your salary or bank account after
we file your petition, it must be returned.

15. May I keep a credit card if I do not owe money on it?

  If you do not owe a creditor any money, you don't list it in your petition, and the creditor will
most likely allow you to keep the card. Sometimes though the creditor may learn of the bankruptcy
and revoke the card.

16. Will my employer know about the bankruptcy?

  Your employer will not be informed of the bankruptcy unless we have to stop a wage
garnishment.

17. How do I go about filing bankruptcy?

  Schedule an appointment for a free consultation in our office. Once you retain us, you may tell
your creditors that they should not call you any more and to call us instead. You will be required to
take a credit counseling class prior to our filing your petition with the Bankruptcy Court. When you
have paid us in full and have taken your credit counseling course, we'll obtain your credit report,
prepare your bankruptcy petition and file it with the Bankruptcy Court. Once the petition is filed
your creditors may not take any further action against you without making an application with the
Court to lift the temporary stay.

  After we have filed your petition with the Bankruptcy Court you will be required to take a second
class on Financial Management. Both this class and the prior Financial Management class is given
by a court approved company either over the telephone or internet and cost a total of
approximately $100.

  About four to six weeks after we have filed your petition with the Bankruptcy Court, a hearing
will be held. We will prepare you for it and go with you to the hearing. The hearing usually takes
five to ten minutes. The discharge is granted about three months later. After that, if any creditor
whose debt is listed and discharged in your petition ever bothers you, we will deal with them at no
extra charge.