Bankruptcy Laws / Information

What is Bankruptcy?

Bankuptcy is a process available to people who have more debt than income/assetts and cannot pay off their debts. Once the debts are discharged through bankruptcy you no longer owe them. It is meant to give you a "fresh start". Filing for bankruptcy will also stop creditors actions.

Is it expensive to file for bankruptcy?

The Court understands people who are filing for bankruptcy do not have a lot of money. It is fairly cheap, a few hundred dollars in court costs for Chapter 7 bankruptcy. You may also want to hire an experienced bankruptcy Attorney to help ensure you are eliminating all the debt you can while maximizing the property you can keep.

Types of Bankruptcy

There are 3 common types of Bankuptcy. The Chapter refers to the part of the bankruptcy code where the regulations are found.

• Chapter 7 (Eliminate most/all of your debts)

• Chapter 11 (Available for businesses)

• Chapter 13 (Payment plan where your debts are reduced).

Can I keep my Property?

The laws give you certain "allowances" of property you can keep. After you exceed that amount, you may be able to keep additonal property with "reaffirmation" agreements.

How will Bankruptcy affect my credit?

A Bankruptcy will appear on your credit report for 7 years. However, many people actually have a higher score a few months after bankruptcy. The reason for this is you should have a lot less debt to repay. Accordingly, the less debt you owe, compared to your income, generally the higher your credit will be.

Can all types of debts be discharged?

Generally No. There are certain types of debts you can not discharge. They include secured credit debts (this is not the same as credit card debts). Other types of debts, such as student loans, can only be discharged after showing an undue hardship. Once your debts are discharged through bankruptcy, there is a separate process, called an adversary proceeding, where the Court will determine how much, if any of the special debts can be discharged/eliminated.

Can Student loans be discharged?

Sometimes. Generally you will have to show an undue hardship. There are other circumstances though where the student loan can still be discharged.

For more information download our Bankruptcy Brochure

, or browse our site or give us a call.

It is best to talk to a lawyer with bankruptcy experience to explain the details and answer any questions you may have.

Give us a call at (603) 553-0717 to discuss your case and options.

Attorney Skoropowski is a debt relief agent under the Bankruptcy Code.