When you are going through the bankruptcy process, we know that you probably have many questions. Our attorneys have the knowledge to answer all of your concerns while guiding you through the entire process.
Read our answers to some frequently asked questions below or call Moore & Associates, LLC at 913.225.8330 to discuss your situation during a free consultation.
How much money do I need to file for bankruptcy?
For Chapter 7, the bankruptcy code requires that attorneys must receive all of the attorney fees and court costs prior to filing. However, you may retain our firm for as little as $100 and make payments while we are preparing your petition.
A Chapter 13 petition can be filed for no cash upfront provided the filer elects to pay his plan payments by wage withholding.
However, if the filer chooses to make the plan payments directly or cannot use wage withholding, the court filing fees of $310 must be paid prior to filing your case. We will explain in detail what fee structure you qualify for and exactly how much will be required during your free consultation.
The total cost for your bankruptcy depends on the complexity of your case and what chapter you file under. Some of the factors that affect the cost of filing include:
Will filing for bankruptcy hurt my credit rating?
While filing bankruptcy is a negative incident on your credit report. The full impact of filing bankruptcy depends on whether you have a good credit score when you file. If your credit is already damaged bankruptcy will have minimal impact on your credit score, and filing bankruptcy is often the best first step to re-establishing a solid credit score within one to three years of filing.
If you have good credit, you will take an initial hit on your credit score. However, if you pay your bills on time after you file, your score can return to an above average level within three years of filing, provided you take appropriate steps to re-establish your credit.
The best way to re-establish your credit if you file a Chapter 13 bankruptcy is to make your chapter 13 plan payments on time and set up a secured credit card shortly after filing. FHA, the federal housing authority will consider approving a borrower for a mortgage who is still paying in their Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year.
What debts are dischargeable in bankruptcy?
There are four primary categories of debt:
Will I lose my house, car, or possessions?
The vast majority of all bankruptcy filers do not have to give up any assets when they file. Every state has a list of exemptions that allow you to protect your assets from your creditors. Whether you ultimately have to give anything up depends on what you have, what exemptions you qualify for, and whether you can afford to continue to pay on your secured loans.
How long does it take to file?
At Moore & Associates, LLC we can file your case in a matter of days. The amount of time ultimately depends on how quickly you can gather all of the required documents, complete a short credit counseling course, and come up with the required court and legal fees. We are equipped to offer same-day filing service in extreme emergencies.
Will my neighbors know that I filed for bankruptcy?
Bankruptcy filings in this area are no longer published in the newspaper, so unless someone is investigating you, they would have no reason to know that you have filed. However, filing bankruptcy is a matter of public record. Anyone that really wants to know if you have filed can go to the courthouse and look up your case.
Will I have to go to court?
You must attend one hearing. Every person that files bankruptcy is required to attend a “341 – Meeting of Creditors.” This is a hearing with a bankruptcy trustee that your creditors are allowed to attend. There is no judge or jury and the meeting is informal, simple and only takes about 5-10 minutes. The trustee, your lawyer, and you attend.
I am considering a debt settlement or consolidation plan. How does this compare to bankruptcy?
Debt settlement is a process where you or a private company contacts your creditors and offers to pay a portion of the amount due in order to satisfy the debt. Payment can be made as a lump sum or over time.
Debt consolidation is when you hire a company to loan you money that is used to pay off all of your prior debts. Upon completion, you make one new loan payment.
Can I stop the creditors from constantly calling?
When you file bankruptcy, there is a federal court order that goes out to all of your creditors forcing them to immediately stop any collections actions against you. This includes harassing phone calls, lawsuits, judgments, repossessions, foreclosures or calling your workplace.