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F.A.Q's chap 7 | last updated 7/12/04
chap 13 FAQ's
Below you will find many of
the most commonly asked questions regarding a Chapter 7 Bankruptcy.
Click each question below to view the answer. All questions and
answers below are general in n
ature and do not constitute
legal advice from the Law Office Lawson & Herring & Associates.
If after reading the frequently asked questions below, your questions
are not answered, please contact us by clicking by calling (214) 265-0123
or emailing
info@dallasdebt.com.
Also, check out the
Chapter 13 FAQ.
General/Before Filing
- What
is the difference between a chapter 13 and chapter 7 bankruptcy?
- Who
contacts my creditors?
- What
debts do I have to continue paying for?
- Can
I be denied?
- Can
I keep some of my debts?
- Who
will know about it?
- Will
filing affect my job?
- Where
can I find out how much I owe the IRS or get past Tax Returns?
- Will
the bankruptcy appear on my credit report? If so when will it appear?
After Filing
- Why
do I need to put my questions in writing?
- What
is 341 meeting?
- When
is the 341 meeting?
-
Where is the 341 meeting?
- What
documents do I need to bring to the 341 meeting?
- Who
will be at the 341 meeting?
- What
will happen at the 341 meeting?
- Can
I reschedule my 341 meeting?
- What
is a discharge?
- How
long will it take to get my discharge?
- Someone
else cosigned with me on one of my debts, how will this affect him?
- Can
I still lose my house or car?
-
What if I failed to list a creditor?
- What
is reaffirming?
- What
is the "automatic stay" and why is it important?
- My
Creditors are still calling me and sending me bills, what should I do?
Rebuilding/Reestablishing Credit
- How
fast can I start to rebuild my credit?
- How
can I rebuild my credit?
- How
long will it be until I can get a new house or car?
- How
long will this bankruptcy stay on my credit report?
A Chapter 7 bankruptcy
discharges all dischargeable debts. These often include credit card
debt, old tax debts, and other unsecured debts. A Chapter 13 bankruptcy
allows the debtor to reorganize their debts. In a Chapter 13 bankruptcy,
a repayment plan is established and payments are made to the Trustee's
office for 36 to 60 months. The advantage of a Chapter 7 bankruptcy
is that it allows debtors to wipe the slate clean and start over.
After we file your
petition, we notice (contact) all of your creditors.
In addition to
your normal expenses, such as food, insurance and utilities, in a Chapter
7 bankruptcy, you must continue paying all of you secured creditors.
These often include your house, car, and furniture. In other words,
it you what to keep your possessions, you must continue to pay for them.
If you are surrendering the secured debt then you do not have to continue
paying for it. If you are unsure about which creditors you need
to continue paying for, please contact you attorney.
There are certain
criteria for filing a Chapter 7 bankruptcy. These include but are
not limited to having received a Chapter 7 discharge within the last six
years, or recently receiving a Chapter 13 discharge where the unsecured
creditors received less than 70% of the amount owed.
Yes. This
is called reaffirming a debt, see below.
Though filing a
bankruptcy is public information, unless you are a public figure, it is
unlikely that anyone except your creditors and those that you tell will
know. Currently in Tarrant county, bankruptcies are not listed on
the internet, newspaper, or television.
If you are missing needed
tax returns you can obtain IRS transcripts for little or no charge.
These can be used instead of tax returns. Transcripts can be obtained
two ways:
1) To
get them immediately, go to:
1515 Commerce Street
2nd Floor
Fort Worth, TX 76102
map
2) Call the IRS at (800) 829-1040 to order your transcripts by mail.
This will take 10-14 days to receive these documents by mail.
No. Law prohibits governmental
units and private companies from discriminating against you because you
filed a bankruptcy petition or because you failed to pay a dischargeable
debt.
The 341 is a meeting the meeting
of creditors, though few ever actually show. This meeting allows
creditors to object to the bankruptcy. If they do attend this meeting,
your attorney will assist you in dealing with them.
Your 341 meeting is typically held
about 30-50 days after your case is filed. You will get notice
of it in mail from the Trustee's office, as well as from your attorney.
Room 521 of
the Federal Court House which is located down town at:
501 West 10th
Fort Worth, TX 76102
map
If you have provided us with all
of the information and documentation that we requested, you will not need
to bring anything to the 341 meeting. Do remember to bring
a drivers license or other form of identification.
In addition to yourself, and spouse
if co-filing, an attorney from our office and a hearing officer will be
present. Creditors are also welcome at this meeting, but few ever
show.
You will show up at the
Federal Court House and wait for you name to be called.
Normally, during this time your attorney will briefly go over the process
with you and answer any questions that you have. When your name is called,
you will be asked a few simple questions about your debts and income by
your attorney and possibly a officer of the Trustee's office. The
process normally takes 10-15 minutes once your name has been called.
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No. However if it is an emergency,
then the 341 can be rescheduled one time as long as you give the attorney
a written reason why can not attend. This written notice must be given
to our office before your scheduled 341 meeting. The reason will
be given to the Trustee when your first hearing is called.
A discharge is when all of your
unsecured (dischargeable) debts are wiped away.
You will receive notice of your
discharge between 90-120 days after the filing of you case. This
is usually about two months after your 341 meeting.
Yes, in a Chapter 7 bankruptcy,
you must continue paying all of you secured creditors. These often
include your house, car, and furniture. In other words, if you
what to keep your possessions, you must continue to pay for them.
If you are surrendering the secured debt then you do not have to continue
paying for it. If you are unsure about which creditors you need
to continue paying for, please contact you attorney. If you
fail to make payments on your secured debts, the creditors will ask the
court to lift the automatic stay
and allow them peruse you.
If you fail to list a creditor,
you must give us the name and address of that creditor and we will
amend the plan and matrix. The court does charge $20 to add
creditors, so be prepared to pay this expense when you give the creditor
information to us.
Reaffirming is the process by which
you voluntarily agree to repay, to become personally liable for, some
or all of a debt. A typical example is a car. You wish to
keep the car you are currently driving, and the creditor wants you to
continue paying, so you sign a new contract, or reaffirm, the vehicle
(debt).
A Chapter 7 bankruptcy is a very
complicated process and generally attorneys do not like to give legal
advice over the phone. Having your question in writing allows us
to refer to it when we answer it. This enables us to be sure to
answer it correctly and in full. It also protects the attorney and
yourself by having a copy of the question and the answer in case of a
misunderstanding. To email us a question, click here.
When you file a bankruptcy, The
bankruptcy court gives you the protection of the automatic stay.
This is a mechanism that does not allow any creditor to pursue any of
the debts that you owe them or seize your property, (there are a few exceptions
such as criminal activities). The automatic stay makes it so you
can go through this process with out being harassed by creditors.
If we have filed your case and you are still be harassed (being sent bills,
receiving phone calls, etc.), write down who (the person, company, time,
etc.), is contacting you and bring that information to our office.
If we have filed your case and
you are still being harassed ( being sent bills, receiving phone calls,
etc.), write down who (the person, company, time, etc.), is contacting
you and bring that information to our office. Your creditors may
be in violation of the automatic
stay.
You can start to rebuild you credit
immediately. Most important is to make sure that all of your creditors,
such as your house and car, are being paid on time and in full.
Any other payment that you are making on a regular basis can also be reported
to credit bureaus. You may need to ask them to report positive information
to the credit bureaus. Some apartments and utilities will even report
payments to the credit bureaus. If you have a retained a credit
card make sure that it is paid in full every month as well. In many
cases, a secured credit card is best and easiest way to start rebuilding
your credit.
You can start to rebuild you credit
immediately. Most important is to make sure that all of your creditors,
such as your house and car, are being paid on time and in full.
Any other payment that you are making on a regular basis can also be reported
to credit bureaus. You may need to ask them to report positive information
to the credit bureaus. Some apartments and utilities will even report
payments to the credit bureaus. If you have a retained a credit
card make sure that it is paid in full every month as well. In many
cases, a secured credit card is best and easiest way to start rebuilding
your credit.
Generally, you can qualify for
a new house or car within a year or so. This depends on several
things, such as current income, debt levels, payment history, down payments,
etc.
Yes, it will appear on your credit
report. When it appears depends on the credit companies and credit bureaus.
Typically, it appears on your credit report, in some manner, between one
and three months after you file.
If the debt is a dischargeable
(credit card, repossession, etc.), then you will not have to pay it. Your
co-signer will become primarily responsible for this debt. Though
the creditor may not peruse the co-signer immediately, they may in the
future. A special automatic stay protects certain co-signers during
the bankruptcy proceeding.
A Chapter 7 bankruptcy can
stay on your credit report for up to ten years.
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