Do I have to Qualify for Bankruptcy?
. In general, if your income is less than the median income in the state you are filing in (Minnesota or Wisconsin), state law will determine whether you can file under Chapter 7 or must file under Chapter 13. These questions are best answered by speaking to a bankruptcy attorney. Contact us
How Sure Can I Be That My Bankruptcy Will Be Granted?
. . As long as you disclose your assets and liabilities accurately and honestly your bankruptcy will likely be granted.
What is the difference between Chapter 7 and Chapter 13 Bankruptcy?
. . In order to file under Chapter 7, your income must be less than the median income in the state you are living in. If you qualify and are granted a bankruptcy discharge, your unsecured debt - credit cards, medical bills, and certain kinds of loans - will be wiped out. However, if you have certain non-exempt assets, the court may sell some of your property in order to pay your creditors a portion of what you owe. Typically, these assets are non-essential or luxury items.
. . In a Chapter 13 bankruptcy, your debt is restructured according to a payment plan agreed to by your creditors. In general, people who file under Chapter 13 are required to pay back what they owe over the course of 3 or 5 years.
How long will my Bankruptcy take?
. . While each case is different, the typical Chapter 7 bankruptcy takes roughly 90 days or three months from start to finish. During this time, creditors have to stop contacting you and must communicate with you through your attorney.
Will My home be Protected?
. . If you are facing foreclosure, filing for bankruptcy may delay the foreclosure process. If you wish to retain your home, you must continue to pay the mortgage
I need to file for bankruptcy but my Spouse doesn't. Can I file alone?
. . Yes. However, since you are married and presumably jointly own a home or other property with your spouse, your spouse's financial information will need to be reported on bankruptcy documents.
Can I get a Credit Card after Bankruptcy?
. . After you receive a bankruptcy discharge, you may begin to rebuild your credit. If you diligently pay your bills, and do not fall behind on payments, you should be able to qualify for a low-balance credit card or a prepaid credit card a few months after filing for bankruptcy. More information on Credit Repair
What If I Don’t Do Anything?
. . There are many instances when bankruptcy is not necessary. For example, if all of your income is a result of disability or social security payments, and you have no assets, you may be judgment proof and there would be nothing for creditors to take. You cannot be thrown in jail for not paying your debts and your creditors cannot collect money that you do not have.
. . Before determining what the best action to take, consider your budget. A credit counseling course will help you with this. Write out all of your expenses and all of your income. If you cannot pay your expenses from your income and cannot find a way to cut expenses, your debt will someday overtake you. At this point bankruptcy is usually one of your best options.
How Do I Stop the Phone Calls?
. . One of the only sure ways to stop the collection calls is to actually file the bankruptcy petition. Once filed an automatic stay goes into effect, collectors can no longer communicate in writing or by telephone to you.
. . However, you don’t always need bankruptcy to stop creditor phone calls and harassment. Federal law prohibits third party debt collectors from calling once you tell them, in writing, to stop. Under the Fair Debt Collection Practices Act, a collection agency may not act in the following ways:
- your attorney
- the creditor
- the creditor's attorney
- a credit reporting agency
- your spouse
- your parent (if you are a minor)
. . Collection agents who contact third parties must state their names, and may only add that they are confirming or correcting information about the debtor. They cannot give the collection agency's name unless asked directly. They cannot state that they are calling about a debt. Collection agents may not contact a third party repeatedly unless they believe an earlier response was wrong or incomplete and that the third party has revised information.
- Debtor communications. Collection agents may not contact debtors before 8:00 a.m. or after 9:00 p.m., or at times the collector knew or should know are inconvenient. Collection agents also may not contact a debtor at work if he or she knows that the employer bans receipt of collection calls while on the job.
- Harassment or abuse. Agents cannot threaten or use violence against the debtor or another person. They cannot use obscene, profane or abusive language. Agents cannot call repeatedly or contact the debtor without identifying themselves as bill collectors.
- False or misleading statements. Agents may not lie about the debt, their identity, the amount owed, or the consequences for the debtor. They cannot send documents that resemble legal filings or court papers. Agents cannot offer incentives to disclose information.
- Unfair practices. Agents may not engage in unfair or shocking methods to collect, including adding interest or fees to the debt, soliciting post-dated checks by threatening criminal prosecution, calling the debtor collect, or threatening to seize property to which the agency has no right.
- Ask you to pay more than you owe
- Ask you to pay interest, fees, or expenses that are not allowed by law
- Use or threaten to use violence if you don't pay the debt
- Threaten action they cannot or will not take
- Collectors can't threaten to sue or file charges against you, garnish wages, take property, cause job loss, or ruin your credit when the collector cannot or does not intend to take the action
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