Frequently Asked Questions on Personal Bankruptcy
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Filing bankruptcy provides a person who is in financial trouble with a
fresh start. If you are having trouble paying bills, and have been
unable to make ends meet despite your best efforts, filing bankruptcy
may be an option for you.
There are different bankruptcy chapters to choose from, but most
people file a Chapter 7. If your situation fits into a Chapter 7, you
should be able to discharge all your unsecured debts, such as credit
cards and medical bills. Secured collateral, such as a home and
vehicle, may be kept as long as those loans are current.
In Chapter 13 bankruptcy, you file a repayment plan with the
bankruptcy court to pay back your debts over a three to five year time
frame. The amount you'll have to repay depends on how much you
earn, the amount and types of debt you owe, and how much property
you own. A Chapter 13 bankruptcy is particularly useful in keeping
your home, even if your lender has already begun foreclosure
proceedings.
An attorney at our office will be able to explain the bankruptcy
procedure to you in detail. In a nutshell, all your debts and assets are
listed on documents called schedules. Those schedules are filed with
your petition in federal bankruptcy court. Once filed, your case is then
assigned to a bankruptcy trustee who reviews the information in your
case. You will come before the trustee at the meeting of creditors,
which is scheduled approximately one month after your case is filed.
The meeting of creditors is held in Des Moines, and one of our
attorneys will accompany you at the meeting. It lasts about five to ten
minutes, and consists of the trustee asking questions to you about
your financial situation and the papers that were filed in your case. It is
called a meeting of creditors because all of your creditors are invited
to come and ask you questions. However, most do not appear at the
meeting.
If all goes smoothly, you will receive a discharge in the mail
approximately eight weeks after the meeting of creditors in a Chapter
7 bankruptcy case. The discharge usually ends your involvement in
the case. In a Chapter 13 Bankruptcy case, a discharge is not
entered until the end of your three to five year plan, but no creditors
can contact you while your Chapter 13 plan is in effect.
A Chapter 7 bankruptcy costs $299.00 to file in court, and the
attorney legal fee is typically another $800.00 for single filers and
$1,000 for married couples filing jointly. A Chapter 13 bankruptcy
costs $274 to file in court, and the attorney legal fee is charged on an
hourly basis, with the fee being approved by the Court.
The above stated fees will be available only to clients whose matters
are encompassed within the services described in our retainer
agreement, and if the matters are not so encompassed, or if an hourly
rate is necessary, then you would be entitled, without obligation, to a
specific written estimate of the fees likely to be charged.
In addition, under the new bankruptcy law, you will be required to take
a prebankruptcy filing class and a post-filing financial management
class. Each of these classes typically cost $30-$50, depending on the
provider.
If you are interested in learning more about bankruptcy, you could
make an appointment with one of our attorneys. The first consultation
is free, and your situation would be examined to determine if
bankruptcy may be an option for you. To make an appointment,
please contact Thornton & Coy Law Office at the link below.
CLICK HERE for Additional Information or to Schedule an Appointment
fresh start. If you are having trouble paying bills, and have been
unable to make ends meet despite your best efforts, filing bankruptcy
may be an option for you.
There are different bankruptcy chapters to choose from, but most
people file a Chapter 7. If your situation fits into a Chapter 7, you
should be able to discharge all your unsecured debts, such as credit
cards and medical bills. Secured collateral, such as a home and
vehicle, may be kept as long as those loans are current.
In Chapter 13 bankruptcy, you file a repayment plan with the
bankruptcy court to pay back your debts over a three to five year time
frame. The amount you'll have to repay depends on how much you
earn, the amount and types of debt you owe, and how much property
you own. A Chapter 13 bankruptcy is particularly useful in keeping
your home, even if your lender has already begun foreclosure
proceedings.
An attorney at our office will be able to explain the bankruptcy
procedure to you in detail. In a nutshell, all your debts and assets are
listed on documents called schedules. Those schedules are filed with
your petition in federal bankruptcy court. Once filed, your case is then
assigned to a bankruptcy trustee who reviews the information in your
case. You will come before the trustee at the meeting of creditors,
which is scheduled approximately one month after your case is filed.
The meeting of creditors is held in Des Moines, and one of our
attorneys will accompany you at the meeting. It lasts about five to ten
minutes, and consists of the trustee asking questions to you about
your financial situation and the papers that were filed in your case. It is
called a meeting of creditors because all of your creditors are invited
to come and ask you questions. However, most do not appear at the
meeting.
If all goes smoothly, you will receive a discharge in the mail
approximately eight weeks after the meeting of creditors in a Chapter
7 bankruptcy case. The discharge usually ends your involvement in
the case. In a Chapter 13 Bankruptcy case, a discharge is not
entered until the end of your three to five year plan, but no creditors
can contact you while your Chapter 13 plan is in effect.
A Chapter 7 bankruptcy costs $299.00 to file in court, and the
attorney legal fee is typically another $800.00 for single filers and
$1,000 for married couples filing jointly. A Chapter 13 bankruptcy
costs $274 to file in court, and the attorney legal fee is charged on an
hourly basis, with the fee being approved by the Court.
The above stated fees will be available only to clients whose matters
are encompassed within the services described in our retainer
agreement, and if the matters are not so encompassed, or if an hourly
rate is necessary, then you would be entitled, without obligation, to a
specific written estimate of the fees likely to be charged.
In addition, under the new bankruptcy law, you will be required to take
a prebankruptcy filing class and a post-filing financial management
class. Each of these classes typically cost $30-$50, depending on the
provider.
If you are interested in learning more about bankruptcy, you could
make an appointment with one of our attorneys. The first consultation
is free, and your situation would be examined to determine if
bankruptcy may be an option for you. To make an appointment,
please contact Thornton & Coy Law Office at the link below.
CLICK HERE for Additional Information or to Schedule an Appointment
THORNTON & COY LAW OFFICE, PLC