Bankruptcy FAQs

At Chuck Reynolds Law Firm, we've helped countless people during their times of financial stress. Check out the bankruptcy FAQs that we frequently encounter.

Q. What are the benefits of bankruptcy?
A. There are two major benefits of filing for bankruptcy. The first is that you get a chance to catch your breath and set up a payment plan. During a bankruptcy filing, your creditors are no longer allowed to harass you for repayment. The second benefit is that you have a chance for your debts to be wiped away. Once a debt has been discharged through bankruptcy, it is gone forever and cannot be collected upon.

Q. Will bankruptcy stop my foreclosure?
A. Yes. Filing for bankruptcy automatically stops a foreclosure from proceeding. However, it should be done as soon as possible to prevent possible problems with filing.

Q. Can bankruptcy stop the garnishment of wages?
A. Yes. Once you file for bankruptcy, your creditors are prevented from trying to collect on your debts for the duration of the process. This includes the garnishment of wages and the freezing of accounts.

Q. Am I qualified to file for bankruptcy?
A. Qualification for bankruptcy has become much more complex since the laws were changed in 2005. The system to find out if you are qualified differs between Chapter 7 and Chapter 13. We will review the process with you and help you decide which avenue to take.

Q. What is an automatic stay?
A. An automatic stay is put into effect during any bankruptcy filing. It is an injunction that prevents your creditors from trying to collect on your debts through any means during the bankruptcy. It is put into place to give people time to get their finances in order.

Q. How long before I can start rebuilding my credit?
A. You can start to rebuild your credit immediately with a secured credit card or secured loan.

Q. Which is better: Chapter 7 or Chapter 13?
A. That is completely dependent on your specific situation. We will guide you through the process and help you decide which bankruptcy is best for you and your family.

Q. How much does it cost to get started?
A. In most cases, you can start a bankruptcy filing for as little as $100 for a Chapter 13. Fees for a Chapter 7 are determined by the facts of each case.

Q. Is there a way to keep my home and car?
A. Yes. Chapter 13 and Chapter 7 will make allowances to keep your home and car, but you must make monthly payments to the trustee or lender to retain ownership.

Q. How often will I meet with my attorney?
A. If you are dealing with Chuck Reynolds Law Firm, you can meet with your attorney as often as you need.

Q. Will bankruptcy adversely affect my credit?
A. The damage has already been done long before you file for bankruptcy. If you have been involved in a foreclosure or repossession or have carried a debt for more than three months, then your credit has already been damaged. Filing for bankruptcy could be a way to start repairing that damage.