Frequently asked questions

Bankruptcy is something most people don’t talk about – and if they do, they have a lot of misconceptions.

To help you better understand your situation, we have compiled a number of frequently asked questions about bankruptcy below. We understand that this section is not wholly comprehensive, and we ask you to check back at a later date if your question is not listed, or contact us directly.

1. How much creditor harassment do I have to put up with?

Creditors are allowed to contact you at home during reasonable hours. They are not allowed to call your place of employment if your company has a policy against receiving outside calls. If you believe you are being harassed you may have a cause of action under the FDCPA (Fair Debt Collections Practices Act). Creditor harassment may include:

• Calling excessively and at odd hours
• Calling your employers when asked not to
• Lying to you
• Threatening you, or threatening to embarrass you.
• Visiting your home.

2. What about my student loans?

Certain debts are dischargeable in bankruptcy. Others are not. Or, at least, generally are not. Student loans fall into the category of non-dischargeable debts. In cases of extreme hardship it may be possible to discharge student loans. While most people who file bankruptcy may believe they fall into the category of extreme hardship, they do not. It is highly probable that your student loans will not be dischargeable.

3. Are my child support payments impacted?

Past due child support is not dischargeable in bankruptcy. In a chapter 13 you will be allowed to catch up the past due amounts while continuing to make your current payments. You do need to understand that your ex-spouse will receive notice of the filing of your bankruptcy, and notice of your discharge. Filing bankruptcy is NOT a violation of your child support obligation. Failing to pay is a violation.

4. I filed a bankruptcy years ago. Can I file again?

You are entitled to receive a chapter 7 discharge once in an 8 year period. You can file a chapter 13 following a chapter 7, but will not receive a discharge of your debts unless the completion of your chapter 13 plan is at least 8 years after receiving the discharge in chapter 7. If you have filed a prior chapter 13, but did not receive a discharge, you will generally be allowed to file a new chapter 13.

5. What is the automatic stay?

The automatic stat goes into effect with the filing of your bankruptcy petition. It is a legal prohibition against creditors beginning or continuing any legal action against you without obtaining relief from the stay from the U.S. Bankruptcy Court. There is also a stay for co-debtors provided the debt is personal in nature, as opposed to being business related.