Common Bankruptcy Questions And Answers
Will I lose all my property if I file for bankruptcy?
A: No. You are allowed certain exemptions to protect your property in bankruptcy. Most people do not exceed these exemptions and do not lose any of their property. If you are one of those few people who do exceed their exemptions, I will probably advise you to file a Chapter 13 bankruptcy. Except in a few rare cases, none of your property will be sold in a Chapter 13 case.
Can I keep paying (and keep) my house and/or car after I file for bankruptcy?
A: Yes. In a Chapter 7 bankruptcy, unless you are several months or more delinquent in your house or car payments, you can continue making your monthly payments (you will have to bring them currently) and keep your property. If you are being foreclosed or in danger of car repossession, a Chapter 13 bankruptcy will allow you to keep your property, so long as you are able to make all future monthly payments and pay a little extra each month to cure your arrearage.
What’s the difference between Chapter 7 and Chapter 13 bankruptcy?
A: If you qualify, a Chapter 7 bankruptcy allows you to discharge unsecured debts without making payments to those creditors. However, if you have a real or personal property that exceeds your allowable exemptions, the Chapter 7 Trustee will sell that property and give the money to your unsecured creditors. A Chapter 13 bankruptcy is a kind of legal consolidation of your debts. Under most Chapter 13 plans, in exchange for making monthly payments to your unsecured creditors for a period of at least 36 months, you receive a full discharge of all listed unsecured debt. The amount of your monthly payment depends upon several factors, including your disposable income (after normal monthly living expenses) and the excess equity in your property that exceeds your allowable exemptions. I will be happy to explain all this to you at your free consultation.
How difficult is it to re-establish credit after receiving a bankruptcy discharge?
A: In over 30 years of bankruptcy practice, my Chapter 7 clients have been able to obtain new credit cards, finance car purchases, purchase or refinance homes, and obtain other kinds of credit within two years of obtaining their discharge. In the case of my Chapter 13 clients, many of them have been able to finance the purchase of needed cars and refinance their homes while they are still in Chapter 13 bankruptcy! With extremely few exceptions, most people do not find it difficult to re-establish their credit after completing either a Chapter 7 or 13 bankruptcy.
What’s the difference between a secured debt and an unsecured debt?
A: A secured debt (like a mortgage on a house or a car loan) gives the creditor the right to take back the security (car, house, furniture, etc.) if you fail to make your payments. An unsecured debt (like a Visa or MC credit card, medical bill, utility bill, rent, etc.) does not give the creditor the right to repossess any property you have. All the creditors can do is to sue you for the money it is owed. Secured debts are not removed (discharged) in bankruptcy, but they can be paid off in a Chapter 13 bankruptcy.
When can I see you for a consultation, and is there a charge?
A: I work strictly by appointment, so I am able to meet with you almost any time it is convenient for you, including evenings and weekends (if necessary). My office is located in the Magnolia neighborhood of Seattle, west of the Queen Anne neighborhood. There is no charge for the initial consultation. I will also be happy to talk with you, briefly, by telephone, prior to scheduling a consultation appointment.
Contact The Law Office of David A. Kubat To Schedule A Free Consultation
If you are unable to make regular monthly payments on all of your debts, you may want to consider bankruptcy. Before you make a decision, schedule a free consultation with David A. Kubat by calling 877-989-7061 or by filling out our online contact form.
The Law Office of David A. Kubat is a debt relief agency. Attorney Kubat helps people file for bankruptcy relief under the Bankruptcy Code.