Individual financial situations vary greatly. A private individual, a couple or a business owner considering bankruptcy for debt relief will naturally have specific questions pertaining to unique circumstances and concerns. Law Offices of Liu and Hsu, P.C. A Professional Law Corporation, welcomes the opportunity to address issues such as the following for clients from Los Angeles County and surrounding areas and elsewhere:
Will bankruptcy wipe out all my debts?
Bankruptcy can help consumers and businesses eliminate their debts or repay them through the bankruptcy court. If you qualify for Chapter 7, you can wipe out (discharge) most debts you owe. If you qualify for a Chapter 13, you will file a proposed repayment plan on how to repay your debts. Some debts may be paid in full, others may be paid partially or not at all.
I have heard that creditors may garnish my wages or seize the cash in my bank account if I don’t pay the bills. Is this true?
Wage garnishment and bank account levies are a real risk if you have gotten so far behind on monthly bills that you cannot catch up. One sure way to avoid this type of financial disaster is to file bankruptcy and stop bill collectors before your debt problem reaches that point.
How does bankruptcy stop bill collectors?
A legal protection in bankruptcy known as the automatic stay stops bill collectors in their tracks. Once you have filed bankruptcy and collectors have received notice, they are forbidden from trying to collect. They can no longer call you, write to ask you to pay, ask your neighbors or employer about you, seize property, garnish your wages or take control of your bank account. If they do, they risk severe penalties from the court. Collectors are aware of this. You can actually stop creditor harassment by filing bankruptcy.
Can I keep my house and car if I file bankruptcy?
A simple answer to these questions is probably yes. It is entirely possible to keep your house and car in spite of filing bankruptcy — and many people do. Other people find bankruptcy a convenient way to let go of a problematic house or a too-expensive car — and the unmanageable loan. Other responses to the possibility of foreclosure (such as agreeing to a short sale by the bank) are riskier. Ask a bankruptcy law attorney to explain your options, including risks and benefits of each potential solution.
Are there debts that cannot be discharged in a bankruptcy?
Some debts cannot be discharged, including: most taxes; child support; alimony; most student loans; court fines and criminal restitution; and personal injury caused by drunk driving or influence of drugs. It is also important to ensure that all debts are listed in your bankruptcy schedules. If you do not list a debt, it is possible the debt will not be discharged.
I filed a bankruptcy not too long ago, can I file again?
There is no restrictions on the number of bankruptcies one can file. However, you can only receive a Chapter 7 discharge once every eight years. Other rules may apply if you previously received a discharge in a Chapter 13 case.
Will you try to talk me into bankruptcy even if I am morally opposed to it?
Rest assured that at Law Offices of Liu and Hsu, P.C., we never urge people to file bankruptcy unless we are convinced it is in their best interests. If we advise you, we will not try to coerce you into any specific type of debt relief. Rather, we will do our best to help you understand what is likely to happen if you seek a loan modification, agree to a short sale of your house, sign up for a debt consolidation plan, or file Chapter 7 or Chapter 13 bankruptcy. We will also let you know what may happen if you do nothing when debts get out of control.
I don’t see my question about debt relief here.
Please bring your question to our attention. We truly enjoy helping people find answers to questions and answers to legal problems. Call our law offices at 626-539-5377 or send an email through this website to schedule a free consultation.