Q. What is Bankruptcy?
A. Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay a portion of them under the protection of the bankruptcy court. Bankruptcy provides a "fresh start" that enables individuals or businesses to start over without the burden of debt. It also gives people who are owed money - the creditors - a fair share of the money that the debtors can afford to pay back.

Q. Will bill collectors stop calling once I file?
A. Yes, but sometimes you may receive a call before creditors receive their notices. In that case, refer them to your attorney. If they persist in calling after they have been notified of your filing, keep a journal of their calls and report them to your attorney immediately. Creditors who continue to try to collect after a person files for protection in Bankruptcy are subject to severe sanctions and penalties by the Bankruptcy Court.

Q. After I file, who notifies the creditors?
A. After your bankruptcy petition is filed, the court mails a notice to all the creditors listed in the schedules. In certain situations, we may call a specified creditor to stop an impending action that has been threatened.

Q. Who does all the paperwork?
A. Your attorney fills out all the forms related to the actual filing. However, the information must come from you. At The Weaver Law Firm, we will provide you with a workbook to help you organize your financial documentation. You will take the workbook home and fill it out, and bring it back to us. We will go over the information with you to make sure it is accurate and complete, and then we will use that information in preparing your filing. We then will have you review the schedules to ensure the accuracy and completeness of the information before we file them with the Court.

Q. How can I re-establish my credit rating after bankruptcy?
A. The best way to rebuild your good credit over time is by making monthly payments in a timely manner. A bankruptcy followed by a good payment record is much more desirable in a potential lender’s eyes than a continued history of unpaid bills. Creditors also may be willing to work with you because you are prohibited by law from filing Chapter 7 bankruptcy again for a significant period of time. Although your bankruptcy can stay on your credit report for 10 years. It becomes less significant the farther in the past the bankruptcy is. Actually, you are probably a better credit risk to a lender after bankruptcy than before.

Q. Will my bankruptcy appear on my credit reports?
A. Yes. Chapter 7 filings are normally reported for 10 years and Chapter 13 filings for 7 years.

Q. After I file, can I obtain new credit?
A. Yes. The decision of whether to extend you credit belongs to each particular lender. While some potential creditors will reject your application for credit simply because you have a bankruptcy on your record, others will grant you credit because you have no other debts left and have the ability to pay a new loan.

Q. How will I live with the embarrassment of filing for bankruptcy?
A. Bankruptcy has become a common and accepted way to take action to solve your problems. As your financial situation improves, you can reestablish credit, and get on with your life. Bankruptcy can provide a fresh start. If you don't file because you are worried about being embarrassed, you could be making a big mistake.

Q. Can I go to jail if I file bankruptcy?
A. Filing bankruptcy is a civil remedy and not a criminal action. If you tell the truth and disclose all that is required, there is absolutely no chance you will go to prison.

Q. Who deals with bill collectors?
A. After you retain The Weaver Law Firm as your attorneys, we will deal with your creditors.

Q. Can I keep some assets out of the bankruptcy proceeding?
A. No. You must disclose all of your assets.

Q. Will my out-of-state debts be affected by my bankruptcy?
A. Yes. The Bankruptcy Court has the power to discharge debts contracted anywhere in the country.

Q. Do I lose any of my rights, such as the right to vote, if I file for bankruptcy?
A. No. You do not forfeit any of your civil rights by filing.

Q. Will my employer or landlord find out about my bankruptcy?
A. There are circumstances where your employer may find out about your Bankruptcy filing, especially if you have a repayment plan that requires you to have money deducted from your check; however, your landlord should not discover the filing unless your landlord is a creditor. Employers are prohibited by federal law from discriminating against you because of your bankruptcy.

Q. What assets do I have to include in the bankruptcy?
A. You must disclose any and all assets you own, have possession of, or have a right to own/posses. Honest disclosure is extremely important. However, keep in mind, simply because you must disclose the assets does NOT necessarily mean you will lose those. Most assets held by normal folks are exempt under state or federal law, and you are not required to surrender ANY assets when filing a Chapter 13.

Q. Can I keep my home if I have a mortgage?
A. Most of the time, we are successful in helping clients keep their homes. However, if you are behind on your mortgage payments, there is a greater likelihood that you will lose your house if you file a Chapter 7 bankruptcy. Sometimes, however, mortgage lenders will agree to allow you to catch up your payments over a two or three month period, but it should be remembered that the mortgage lender is not required to do so. If you are not behind on your mortgage payment, you can reaffirm your mortgage debt in a Chapter 7 case if the Bankruptcy Court approves the reaffirmation. In a Chapter 13 bankruptcy, you will not lose your house if you immediately resume making the regular payments called for under your mortgage contract agreement and you repay your missed mortgage payments through your Chapter 13 plan.

Q. Are there any alternatives to filing bankruptcy?
A. Before making a decision to declare bankruptcy, it is important to consider other alternative options. In doing so, you should see an attorney to figure out the best solution for your situation.

Contact  The Weaver Law Firm and speak with one of our representatives today by calling 
(817) 460-5900 to answer all your bankruptcy questions.