Frequently Asked Questions
1.
What is Bankruptcy?
Bankruptcy is a legal process, which will protect you from unsecured creditors. In exchange for this protection, you may lose some of your assets. Bankruptcy is often the best alternative for a debtor who has modest income and few assets.
   
2.

How will a Bankruptcy help me?
Upon filing bankruptcy your unsecured creditors will no longer look to you for payment of your debts. Any wage garnishments or other collection activities will cease.
   
3.
 I have a co-signer on a loan or credit card. What happens when I file an assignment in bankruptcy?
Bankruptcy will protect you from your unsecured creditors, but when you file an assignment in bankruptcy, creditors will usually come after the co-signer for the full amount of the debt. Your bankruptcy will not protect any other person such as a co-signer or guarantor of any of your debts.
   
4.
How will bankruptcy affect my credit rating?
A record of your bankruptcy will be retained at the various credit bureaus for approximately 7 years for a first time bankrupt.
 
5.
How long does bankruptcy last?
In most cases, a first time bankrupt will be bankrupt for 9 months.
   
6.
How much does it cost to file an assignment in bankruptcy?
Every bankruptcy situation is different. Please contact our office for clarification on your particular situation.
Remember, "It doesn't cost anything to talk."
 
7.
What debts will not be discharged by bankruptcy?
Common debts which survive bankruptcy are most student loans, court fines, debts which were fraudulently incurred, and family support obligations.
 
8.
What about debts where I have given security to my creditors over my assets like a car loan or a mortgage on real property?
Bankruptcy will not prevent creditors with valid and enforceable security from seizing pledged assets. Every situation is different. We would be happy to discuss alternatives that apply to your unique situation.