- What is bankruptcy?
Bankruptcy refers to the legal process by which a debtor is able to seek some relief for its debts if certain criteria are met.
- Who can file for bankruptcy?
As a blanket statement, anyone can file for bankruptcy. It should be noted however that filing for bankruptcy does not guaranty that you will be able to restructure your debt obligations.
- What happens when you file bankruptcy?
When you file for bankruptcy, your application is submitted to Federal District Court. From there, a bankruptcy trustee is appointed by the Court to oversee your case. This trustee reviews your assets and liabilities. Our firm can help you through the administrative processes of declaring bankruptcy, and a bankruptcy judge makes the final decision regarding restructuring your debts.
- Why would you file bankruptcy?
An individual (or an entity) can file for bankruptcy when he/she/it can no longer meet the required payments on debt obligations.
- Does bankruptcy mean you have no money?
No. Declaring bankruptcy does not mean that you have no money. Rather, it simply means that you are unable to make satisfactory payments on your current debts.
- Who do you file bankruptcy with? A bank? A lawyer?
Bankruptcy is filed in federal district court.
- Does bankruptcy give me money?
No. Bankruptcy restructures your debt obligations to allow you to make payments, and sometimes eliminates debt obligations altogether.
- Do I have to file for bankruptcy, and is that different than declaring bankruptcy?
You do have to file for bankruptcy. Filing for bankruptcy and declaring bankruptcy are synonymous.
- Will I still be in debt after I declare bankruptcy?
It depends on the type of bankruptcy you declare. Sometimes bankruptcy will discharge your debts (leaving you no longer in debt to those creditors), and sometimes your debts will be restructured (allowing you to pay them off).
- Can I file for bankruptcy and keep the money in my checking and savings accounts?
You may claim some money as exempt, but there is no guaranty that the court will approve your exception claim.
- Will filing for bankruptcy affect my retirement accounts?
The answer to this question generally depends on the type of retirement account. Contact our office for more information.
- How do I file for bankruptcy?
If you are interested in filing for bankruptcy, contact our office to set up a consultation with our Attorney.
- Will filing for bankruptcy hurt my credit score?
Filing for bankruptcy will likely hurt your credit score. If you file a chapter 7 bankruptcy it will stay on your credit score for 10 years. If you file a chapter 13 bankruptcy it will stay on your credit score for 7 years.
- Do I have to pay to file for bankruptcy?
There are attorney and court fees associated with the bankruptcy process.
- How does a bankruptcy attorney get paid if their client can’t pay their debts?
If you file a chapter 13 bankruptcy, you may have the option to pay your legal fees under your debt restructuring plan. If you file a chapter 7 bankruptcy, you may be required to pay your legal fees up front to avoid a conflict of interest with our office.
- Can I file for bankruptcy and get denied?
Yes. There is no guaranty that you will be able to file for bankruptcy. However, choosing qualified and competent legal counsel is one way to improve your chances of properly declaring bankruptcy.
- Can I file for bankruptcy and still keep my house, cars, and other items?
Certain items may be qualified as exempt, such as your home, car, and certain personal possessions.
- When I file for bankruptcy will debt collectors still call me?
Filing for bankruptcy puts an automatic stay on most debt collectors, preventing them from harassing you about your debts.
- When I file for bankruptcy will my employer know?
Most bankruptcy proceedings are public record. Your current employer might not be alerted, but future employers might detect your bankruptcy upon investigation.
- Can I file for bankruptcy multiple times?
Yes. You can file for bankruptcy multiple times.
- Can I pay off my debts once I have declared bankruptcy?
Yes, depending on the type of bankruptcy you declare. If you declare a chapter 13 bankruptcy, your debts may be restructured to allow you to repay them. If you file a chapter 7 bankruptcy, your debts will be discharged, meaning that you will no longer have those debt obligations.
- Will filing for bankruptcy affect my businesses?
Assuming you are not filing a chapter 11 bankruptcy (which is for business entities), the answer depends on what type of business entity you have. Sole proprietorships may be treated differently by the trustee than a LLC or Corporation. Additionally, depending on your entity ownership and structure, there may be organizational agreements that you signed that compel certain actions prior to filing bankruptcy.
- Can I file for bankruptcy and keep my corporate entity solvent?
The answer to this question will depend upon a variety of factors. Contacting our office and consulting with our Attorney is the best way to gain insight into your options for declaring bankruptcy.
- What is the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy?
In a chapter 7 bankruptcy, the debtor’s debts are discharged (the debtor no longer holds the debt obligations). In a chapter 13 bankruptcy, the debtor’s debts are restructured so that they can be repaid.
- Does my spouse file for bankruptcy with me, or do we each file separately?
Choosing whether or not to jointly file for bankruptcy depends on which debts you would like to relieve. If you and your spouse have questions about filing for bankruptcy, contact our office.
- My spouse and I have separate bank accounts. Do we each need to file for bankruptcy?
Not necessarily. You can choose whether or not to file for bankruptcy jointly or separately.
- What kind of documentation do I need to gather?
Contact our office to receive a list of the documents that our Attorney will need to review for your case.
28. What is a Chapter 11 Bankruptcy?
A Chapter 11 Bankruptcy proceeding is a bankruptcy proceeding wherein a corporate entity files for bankruptcy, seeking to restructure its debts in an effort to avoid liquidation.
29. Who can file for a Chapter 11 Bankruptcy?
Chapter 11 Bankruptcies are usually filed by corporate entities.
30. How is a Chapter 11 Bankruptcy different from a Chapter 13 or Chapter 7 Bankruptcy?
In a chapter 11 bankruptcy, a corporate entity seeks to restructure its debts. In a chapter 13 bankruptcy, an individual seeks to restructure its debts. In a chapter 7 bankruptcy, the corporate entity cannot continue to operate, and its assets are liquidated to pay off its debts.
31. How do I file for a Chapter 11 Bankruptcy?
If you are interested in filing a chapter 11 bankruptcy, call our office at 210-202-1000
32. Can one of my businesses go bankrupt and not affect the other businesses I own?
Yes. One of your entities can file for a chapter 11 bankruptcy without affecting your other entities.
33. Can my business file for a Chapter 7 Bankruptcy?
Yes. Filing for a chapter 7 bankruptcy will liquidate your business’ assets and render your entity inoperable.
34. Can a Chapter 11 Bankruptcy claim be denied?
Yes. Filing for bankruptcy is never a guarantee.
35. Do LLCs and Corporations file for a Chapter 11 Bankruptcy differently?
Typically not. For more information feel free to contact our office.
36. Will filing for a Chapter 11 Bankruptcy affect any entities that my business holds as a holding entity?
Depending on the type of bankruptcy you choose to file, your sub-entities could be affected.
37. What percentage of owners does a business need to approve the filing of a Chapter 11 Bankruptcy?
This depends on the entity itself, specifically what number of shareholders is required for the entity to take an action.