<- Bankruptcy Main Page Chapter 2: What About My Property? ->
A Chapter 7 Bankruptcy allows you to free yourself of financial burdens and get a fresh start. Generally speaking, with only a few exceptions, all of your debts are cancelled - forever. Your wage will no longer be garnished and you will not receive any collection calls or letters. You will be allowed to keep your property that fits into the court approved exemption scheme. For most people, all of their property can be retained.
The major disadvantage is the difficult task of obtaining loans and credit with a bankruptcy on your record. It is not impossible to obtain credit, particularly with auto loans, but it will be even more difficult than it has been in the past. Some people will feel ashamed and embarrassed. Lastly, if someone co-signed a loan for you, they will now have to pay your debt.
I will list the tests for qualification below. It is usually impossible for a non-attorney to make this determination. I offer a FREE, NO OBLIGATION initial consultation. I will determine if you qualify. You can then decide whether to file or not. So, to find out if you qualify, call my office at (616) 457-5100 and set up an appointment.
Maybe, but usually not. Assuming you file in West Michigan, currently, the only place where notice of your bankruptcy is posted is in the Grand Rapids Legal News. It only publishes listings of new mortgages, tax liens, bankruptcies, and other almost useless data. Most employers do not have the time to read through all the listings let alone have any interest to do so. Most do not even subscribe to the publication or have any need to. However, if you owe money to your employer or landlord, they must be listed as a creditor. As a creditor they will receive notice of the bankruptcy from the court.
No. This is now illegal. Not too many years ago, many West Michigan companies routinely fired employees who filed. Thank goodness those days are gone.
No. The United States does not jail people who do not pay debts. This is why we left England many years ago...remember?
No. A married person may file as an individual. Your spouse does not have to file with you. However, you might be interested to know that I charge the same low fee for a joint filing as an individual one.
It will not affect them at all directly. It will not appear on their record. However, it will affect them in that they no longer have a spouse who has the ability to help them get a loan.
Usually not. However, you will have to attend a creditors meeting with a trustee of the court. In West Michigan this meeting is held at the Law Building, not at the courthouse. The exception would be where one of the creditors files an advisory proceeding. This is where the creditor believes that you in fact do not qualify for bankruptcy. Usually they claim you lied on your petition or committed fraud in the filing. If you did not lie or commit a criminal act, you have nothing to worry about.
When you file bankruptcy, Federal law requires your creditors to stop taking any action to collect the debts owed them. This includes calling, writing, or seizing your property or wages. However, there are some exceptions: For example, bankruptcy does not stop a criminal action (unless brought to collect a debt), an action to collect alimony, or child support.
Yes, you can keep any cards that do not have a balance owed on them. However, some credit card companies, when they learn of your bankruptcy, may cancel your card. Most companies, after you discharge a debt on their card, will cancel the card and refuse to give you a new one.
Usually yes. However, this is a difficult question and the determination of eligibility is beyond this FAQ information page. I can make this determination at your free initial consultation. Call (616) 457-5100 for your appointment.
<- Bankruptcy Main Page Chapter 2: What About My Property? ->
Privacy Policy | Disclaimer and Conditions of Use | Accessibility Statement
