Credit Card Debt $ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+ Other Unsecured Debt $ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+ Number of Creditors    Select One 2 3 4+ Status of Bill Payments    Select One Up to Date About to Fall Behind 1 Month Behind 2 or More Months Behind I want to    Select One Eliminate My Debt Consolidate My Debt Seek Advice Own a Home?    Yes  No

Bankruptcy Q: What does the term "bankrupt or discharge a debt" mean? A: "Bankrupting the debt" is incorrect terminology, the correct term is to "discharge a debt". When a person who was earlier successful but due to some reason is no longer able to pay off his/her debt then the person is free to file for bankruptcy or discharge a debt. This means that though the debt is not really removed but the person who has filed the case has no obligation to pay the debts that are discharged by the court. Q: Can I file for bankruptcy if I am already sued or have a judgment against me? A: Bankruptcy is a dischargeable debt which means that it is not like a scam or a household maintenance compulsion, therefore one can file for bankruptcy at any time. The benefits of filing for a bankruptcy are that you can escape from the debt even if the creditor has filed for a lawsuit against you or has a judgment. If the creditor has a lien against your property still you can escape from the debt but the lien will stay on your property unless one can do something during the process of bankruptcy. Q: Where do I file my bankruptcy case? A: You have to file your case in the District where you have your domicile or have resided for at least180 days or more before the date of filing of your case.

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Q: Can a student be denied education loan for reasons that the student's parents or the student filed for bankruptcy? A: Section 525 of Bankruptcy code clearly emphasizes non-discriminatory behavior by loan agencies providing student loans regarding bankruptcy filing reasons. In other words, a loan agency for education can not prohibit a student from getting loan just because the student or an acquaintance of the student filed for bankruptcy. Q: What is the meaning of automatic stay? A: Automatic stay is an order which comes into effect automatically when somebody files for a bankruptcy. Automatic stay bans the continuation of debt recovery from filer by creditor, for an amount, which was taken before filing bankruptcy. This order comprises of several actions such as enforcement of decision, creating liens etc. Automatic stay does not cover child support or maintenance. Q: Under which circumstances does the automatic stay come into effect and for how long does it stay? A: By and large, as soon as the bankruptcy filer files the case, the automatic stay comes into action and remains into effect till the filer receives discharge from the bankruptcy court. Duration of legal shield or automatic stay against filer's property may vary depending on outcome of the case. It worthy of noting that bankruptcy cases filed after 17th October 2005 have new length limits for automatic stay. First point - automatic stay ends after 30 days from the date of filing new bankruptcy case if the filer had a bankruptcy case dismissed within one year from the date of filing the new case. However, the filer can obtain a court order to extend the automatic stay duration beyond 30 days citing relevant reasons and stating reasonably why the prior bankruptcy case was dismissed. Second point - if the filer had two bankruptcy cases dismissed within a year of filing this new bankruptcy case then there is no automatic stay at all. However, bankruptcy court can bring the automatic stay into existence after a noticed hearing of the case.For finer aspects of automatic stay duration, please consult an experienced bankruptcy attorney. Q: What do you mean by exemptions? A: Bankruptcy entities can exempt a portion of the actual value of their assets from their creditors. From state to state, not only do the assets entitled for exemption differ but also the protected amount on same asset differs. As an example, homestead exemption exempts the bankruptcy filer from total liquidation payment to creditor for home asset. Only an experienced and seasoned bankruptcy attorney can completely and accurately explain the various exemptions that a bankruptcy filer is entitled to. Based on ones domicile for the previous 2 years from the date of filing the bankruptcy case, the appropriate state law will apply.   Q: Is it entirely up to me to decide the list of creditors whom I would mention on my case for bankruptcy? A: This is the most common myth that people contemplating bankruptcy have. As a legal procedure, the filer has to make sure that all creditors are listed with the correct details about the outstanding amount and the transaction. Similarly, you have to mention all your own assets. Once the bankruptcy case gets over, the bankruptcy filer may or may not repay the debts that are discharged or bankrupted, but the debts which are not discharged the bankruptcy filer needs to repay. However, in short, while filing the case, the filer needs to list all the creditors. Q: Before filing bankruptcy, can the filer transfer his or her assets to someone else? A: Transferring an asset prior to filing bankruptcy is often with the intent of saving the complete value of asset so that it is not used to repay to creditors. This is clearly not reasonable and is therefore illegal. A filer can however sell the asset for a "fair price" and inform about the transaction. A transfer in any other form is deemed illegal and fraud. Q: As a bankruptcy filer, will I be discharged or relieved from all debts that I owe to my creditors? A: Only the debts that Congress has included in the exclude list are discharged from repay. Any debt that has not been exempted by the Congress has to be repaid by the bankruptcy filer. Q: Someone else has put lien against my property? How can I remove it? A: Lien is the legal hold on borrower's asset or property and is often the collateral used against the money borrowed by the borrower. Once the bankruptcy case has started, and only under certain pre-defined cases, can a special motion be filed to remove lien on certain type of assets. At a high level, if an exemption to which the filer is entitled under State law gets weakened due to the asset-value, senior liens and other burdens on it, then the legal liens may be removed. Only a bankruptcy court can remove the lien. Q: Can an employer, who is contemplating filing for bankruptcy, fire an employee? A: As a matter of fact, an employer - irrespective of whether contemplating bankruptcy or not - can always find reason to fire an employee. However, as a matter of law, the reason can never be bankruptcy. Section 525 of bankruptcy protocol states this very explicitly. Chapter 11 Bankruptcy Chapter-11 deals with code of bankruptcy, which is the content form of reorganization and is basically applicable for business, irrespective of its small and big size, for example corporations and partnership business ventures in first row, or the second category is comprised of individual with lump sum amount of financial obligations who does not meet the criteria of asset or liability limitations as described in Chapter-13.   Chapter 13 Bankruptcy Chapter 13 helps individuals or small business owners to repay their creditors. One purpose of chapter 13 is to enable a debtor to keep certain assests such as your home that might be otherwise be liquidated by a Chapter 7 Trustee.   Chapter 7 Bankruptcy If you are struggling with debt such as credit cards, loans, medical bills and other debts, Chapter 7 might be an option for you. Chapter 7 often referred as liquidation bankruptcy where bankruptcy trustee liquidates or convert your assets into cash to pay off creditors.  However, many people do not have any assets and therefore there is no actual liquidation.   Discharging Taxes and Tax Debts in Bankruptcy Bankruptcy may be a tool to get rid of critical financial spot but it may not serve as a cure for all other tax debts. But the good information is that the tax debt may be released if you face bankruptcy. It means that your debt can be canceled and it will not be collected in future.