Answering Your Most Common Bankruptcy Questions

If you are being contacted by creditors or those creditors have taken action against you (i.e., garnished your wages or threatened to foreclose your home), it is reasonable to consider bankruptcy as a debt relief option.

At the law firm of Kristen A. Stanton, Attorney at Law, located in Defiance, we help people navigate the complexities of filing Chapter 7 or Chapter 13 bankruptcy. Information is always delivered in a clear, straightforward manner with consideration for each of our clients’ unique financial circumstances.

Protecting Your Assets And Discharging Debt

Most bankruptcies do not have to end in the liquidation of assets. Bankruptcy exemptions provide a means to save homes, cars and personal property. We can take the time to answer your questions and provide you with the information you need to confidently move forward with debt relief options.

Some common questions we hear are:

• What is the difference between Chapter 7 and Chapter 13 bankruptcy? Chapter 7 bankruptcy is used to discharge unsecured debts for people who have no means to pay them back. Chapter 13 is more effective for people with a steady income who could pay back debts if they are reorganized into manageable payment plans.
• Who is the bankruptcy trustee? A bankruptcy trustee oversees your case and the payment of creditors or the debt discharge. He or she will assess your petition, your income and your debts. If possible, the trustee will collect available assets and use them to pay creditors. In many cases, no assets are available for liquidation.
• Will someone come to my house and take my property if I file for bankruptcy? No one will come to your house and serve you with papers or take your property. Filing bankruptcy is a voluntary process, and all financial transactions that happen take place away from your home.
• Will my name be printed in the paper or published for everyone to see? A bankruptcy filing is not going to be disclosed to your local newspaper or to your friends and family. It is governed by federal law, so court hearings take place in a different location. No one has to know that you are filing for bankruptcy.
• Will I have to give up my house or my car? Your assets are typically exempt from liquidation. Even if your home is in foreclosure or a creditor is trying to repossess your property, bankruptcy stops these actions against you. Debt relief plans can then be worked out through bankruptcy court to keep your car or your home.
• Can I file bankruptcy for credit card debt or medical bills? Credit card bills and medical bills are unsecured debts – the type of debts that are most likely to be discharged in full through bankruptcy.
• Can I discharge back taxes or other money owed to the government? Money owed to the government, such as taxes or student loans, as well as child support payments and similar debts, is not dischargeable through bankruptcy.
• Should we file for bankruptcy before or after our divorce? Filing Chapter 7 before divorce may reduce legal costs and simplify debt division, especially if you qualify to file jointly. If communication is strained or finances are unequal, filing after divorce might work better.
• Can Chapter 7 bankruptcy affect child support or alimony? No. Bankruptcy doesn’t eliminate child or spousal support. These obligations remain protected. Chapter 7 may relieve other debts, making it easier to stay current.
• Will bankruptcy delay or complicate our divorce? It can. Chapter 7 triggers an automatic stay, which may pause property division. It can delay decisions about assets like your home or retirement accounts.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Do You Still Have Questions?

Let us answer them during an initial consultation. If you are a resident of Northwest Ohio, then ask about our Defiance office. Our fees are affordable and competitive. For more information, email us or call 888-512-6925. Evening hours are available for our clients’ convenience when necessary. The help you need is just a conversation away.

As a debt relief agency, we help individuals file for bankruptcy protection under the Bankruptcy Code.