Frequently Asked Questions:
Do I make too much money to file for bankruptcy?
In almost all situations regarding debt management you will find that the amount of income is not, by itself, the ruling factor, but, rather, just one part of the equation. For example, a married couple with what you may deem to be high income may qualify for bankruptcy filing if they have three or four children. Likewise, a single individual does not have the same number of expenses as a family. Each situation is different and deserves attention. Our attorneys will provide you with individualized attention.
How do I know if I have too much debt?
There is no such thing as “too much debt”. Debt management does not have a ceiling. A better question is whether all of your debt is dischargeable. Our attorneys will examine all of your debt in your free consultation. Once they know the nature of the debt they will be able to advise you what debt is dischargeable and how you can manage the debt that is not. Long Island Bankruptcy Lawyer
Can I be denied a discharge?
Yes, you can be denied a discharge, but it is very rare. Our attorneys have a 99% success rate. So, 99% of the time our clients receive their discharge. Our attorneys will explain what could possibly stop you from being discharged in bankruptcy court. Before you file you will know exactly what you case entails and what issues may arise. But, remember, bankruptcy laws were enacted to help people, not to hurt people.
Will I lose my assets?
Most people who file bankruptcy keep all of their assets. Of course, there are circumstances where certain items are unprotected. However, our attorneys will let you know exactly what assets you own that might be unprotected. Remember, bankruptcy laws were enacted to protect you, not to hurt you. The Federal government does not want you to sacrifice all of your assets in order to file for bankruptcy. Specifically, the Federal government provides for “exemptions” that allow you to protect your assets. In your free debt-management consultation our attorneys will advise you of what exemptions apply to your assets.
Can I lose my house?
It is rare that you can lose your house. You have a $150,000 exemption in your home. If you are filing with another party that owns the house together you have a $300,000.00 exemption. The quick test is as follows: VALUE OF THE HOUSE – ANY MORTGAGES – EXEMPTION ($150,000 OR $300,000.00) = ??? If the final number is zero or less the house is safe. Even if there is some value after the test the same may be managed. In your free debt-management consultation with our attorneys you will learn whether your house is an issue in the bankruptcy filing. OUR ATTORNEYS WILL ADVISE YOU WHETHER YOUR HOME IS AN ISSUE BEFORE YOU FILE FOR BANKRUPTCY.
If I am bankruptcy is my spouse bankruptcy? My children?
No, a bankruptcy filing is individual. You can file bankruptcy with your spouse and often times the marital debt is in both names, but the debt may just be one person’s name. Accordingly, a husband filing bankruptcy does not affect the wife and the wife filing for bankruptcy does not affect the husband. You cannot file bankruptcy jointly with a child. Accordingly, your bankruptcy filing does not affect your child.
Will filing for bankruptcy destroy my credit score?
If you are looking to file for bankruptcy the chances are your credit already has issues. So, if you have perfect credit then, yes, a bankruptcy filing will destroy that perfect credit score. However, if you have missed bill payments and are facing collections then a bankruptcy filing will actually improve your score. Think about it, if you eliminate all of your credit card debt then yu are the best person to lend money to. You will learn more about this from our attorneys in your free debt-management consultation.
Will I ever get a credit card again?
Yes, you will. You may not receive a credit card immediately after filing bankruptcy, but you will be able to build your credit again. Now that you received your discharge you are the best person to lend money to. You don’t owe an unsecured debt. You are eager to rebuild your credit and you cannot file bankruptcy.
I’m really embarrassed. Will my family find out? Will my job find out?
First, it is against the law for your employer to treat you any differently because you filed bankruptcy. Second, the bankruptcy court does not contact your employer. You are more likely to receive a phone call at work from a creditor (which is a violation of the fair debt collection practice act).
More importantly, filing for bankruptcy protection is not an embarrassing act. You are, in fact, taking a stand. You are recognizing your financial position and taking steps towards improving your future. Very often debt-management issues are beyond our control . Many bankruptcies stem from a death in the family, a divorce or simple changes in the economy. The fact that you are stepping up to manage your financial future is something to take pride in. Nothing changes by iself.