Q: What can bankruptcy do for me?

A. Discharge most or all of your debt.
B. Stop foreclosure and allow you to:
  1. Make up missed payments in a 3-5 year plan. Or
  2. Apply for a loan modification through the Bankruptcy Court's Loss Mitigation Program.
C. Stop repossession of a car or other property, or force the creditor to return property even after it has been repossessed if you file within the required time frame.
D. Stop wage garnishments, creditor phone calls and other collection harassment. E. Stop utility companies from shutting off service or force them to turn you back on if they have already terminated you.

Q: Can I keep my house if I file for bankruptcy?

A. In most cases yes. This can be determined before you file. We would need to know how much equity you have in your house.

Q: Can I keep my car if I file for bankruptcy?

A. In most cases yes. This can also be determined before you file. We would have to know the value of the car before filing.

Q: Will I ever be able to buy a house or a car after I file for bankruptcy?

A. Yes. You will be eligible for most VA and FHA loans, and many conventional loans two to five years after the discharge. Many car lenders will finance cars very soon after the discharge.

Q: Can I discharge DMV surcharges in bankruptcy?

A. In most cases yes. But fines, penalties and fees owed to local, state and federal government are generally not dischargeable.

Q: Can I get my drivers license back if I file for bankruptcy?

A. Yes, if the only reason your license is suspended is because you owe surcharges you can get your license back after you file.

Q: If I am married and I file for bankruptcy, does my spouse have to file?

A. No.

Q: How will bankruptcy effect my credit?

A. Bankruptcy is always a bad mark on your credit report. However by the time most people think about bankruptcy, their credit report is already pretty bad or will be shortly, if they fall behind on their payments. After you receive your bankruptcy discharge you will no longer be legally liable for the discharged debt so in time you will be able to build your credit rating back.

Q: Should I take money out of my 401 K?

A. In most cases that is not a good idea.
  1. That money is for your retirement. You will need it later.
  2. That money is safe where it is from most creditors. If you take it out of the 401 K you lose the protection.