FAQ
Do I really need a bankruptcy attorney?
Individuals may file a bankruptcy petition without an attorney. This is called appearing "pro-se." However, the bankruptcy code is very complex and filing a bankruptcy petition requires a thorough knowledge of both the bankruptcy code and other Federal and State laws. In addition, bankruptcy practice differs from court to court. Experienced bankruptcy attorneys are familiar with the local rules, both written and unwritten.
Filing your own petition is very risky. Often "do-it-yourselfers," or even lawyers lack proper experience and make serious mistakes with drastic results. A mistake can cause the unnecessary loss of assets, loss of a personal home, or even the loss of the right to receive a bankruptcy discharge. You may be able to read the bankruptcy code, but only an experienced bankruptcy attorney can provide a realistic assessment of what can and cannot be accomplished by filing a bankruptcy petition, and make sure that your case proceeds smoothly.
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What exactly is bankruptcy?
Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidation" or "reorganization."
Under a liquidation bankruptcy (Chapter 7), you ask the bankruptcy court to wipe out (discharge) the debts you owe. Under a reorganization bankruptcy (typically Chapter 13, for consumers), you file a plan with the bankruptcy court proposing how you will repay your creditors. You must repay some debts in full; others may be repaid only partially or not at all, depending on what you can afford.
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Will filing for bankruptcy protect me from creditors' efforts to collect what I owe?
When you file either kind of bankruptcy, something called an "automatic stay" goes into effect. The automatic stay prohibits most creditors from taking any action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections.
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What is the difference between Chapter 7 and Chapter 13 bankruptcy?
In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection (see "What property might I lose if I file for bankruptcy?" below), sell it, and distribute the proceeds to your creditors.
In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own.
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Which type of bankruptcy should I use?
Most people who file for bankruptcy choose to use Chapter 7, if they meet the eligibility requirements; Chapter 7 is a popular choice because, unlike Chapter 13, it doesn't require filers to pay back any portion of their debts.
However, Chapter 13 might be a better choice, depending on your situation. For example, if you are behind on your mortgage and want to keep your house, you can include those arrearages in your Chapter 13 plan and repay them over time. In Chapter 7, you would either have to make up the whole past due amount right away -- and you might lose your house, if your equity exceeds the exemption amount available to you.
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Contact
Law Offices of David S. Waltzer PC99 Mamaroneck Ave
Suite 2
White Plains, NY, 10601
local: 914-287-0880
toll free: 1-888-332-8511
info@waltzerlawgroup.com