Frequently Asked Questions?
- Does filing for bankruptcy protection stop creditors from calling me or contacting medirectly?
- Will filing for bankruptcy save my home from foreclosure even if I have waited until the day before the sale?
- My car was repossessed yesterday. Will filing for chapter 13 bankruptcy help me get my car back?
- Can I keep my home, car, and other possessions?
- What is Chapter 13 Bankruptcy?
- Can I buy or sell a home while I am in Chapter 13?
- Will filing Chapter 13 help me with my IRS debt?
- Will filing Chapter 13 help me with my past due child support obligation?
- What is Chapter 7 Bankruptcy?
- Can I file Chapter 7 if I have assets I want to keep?
- How will filing for bankruptcy affect my credit score?
- How soon will I be able to re-establish my credit?
- What is credit counseling? How do I enroll?
- How much will it cost to get started?
- How many times will I have to go to court?
- What is a bankruptcy mill?
- Am I qualified to file? Who is disqualified from filing under the new laws?
- Will I receive a copy of my paperwork?
- How often will I meet with my attorney?
Does filing for bankruptcy protection stop creditors from calling me or contacting me directly?
Yes, immediately. After we file your bankruptcy, your creditors may only contact us. We will provide you with a phone number to give to your creditors directing them to us. Once they have been notified, creditors are prohibited from contacting you at home, at work, or by cell phone. Your creditors will also be prohibited from contacting your friends and family members. In addition, filing for bankruptcy will halt wage garnishments, end lawsuits targeting personal property, stop repossessions and foreclosures, and potentially even return previously garnished wages or repossessed property to you.
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Will filing for bankruptcy save my home from foreclosure even if I have waited until the day before the sale?
Yes. We can stop the
foreclosure sale right up until the sale begins. However, we
encourage you not to wait until the last minute as it can
increase the risk of unforeseen circumstances that may prevent
you from filing.
My car was repossessed yesterday. Will filing for chapter 13
bankruptcy help me get my car back?
Yes. You have 10 days from the day your
car was repossessed to file during which we can retrieve your
vehicle. You will be required to show proof of insurance before
the vehicle is returned to you.
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Can I keep my home, car, and other possessions?
Yes. Chapter 13 is designed in such a way that you can reorganize
and eliminate your debt without surrendering your home, car, or
other property, but you must begin paying your regular monthly
payments on these debts to maintain ownership. Any past due
balances will be part of the repayment plan determined by the court,
giving you 3 – 5 years to pay these past due balances off.
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What is Chapter 13 Bankruptcy?
Chapter 13 is also known as a “wage earner plan” or a “debt
reorganization”. As part of Chapter 13, your past due balances are
consolidated and you agree to repay them over a period of 3 – 5
years, in addition to continuing to make all current payments. Your
monthly payment on the past due debts is determined by your income
and expenses, often amounting to less than 10 cents on the dollar.
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Can I buy or sell a home while I am in Chapter
13?
Yes, but the process will be a motion before the court. We will help
you with the process.
Will filing Chapter 13 help me with my IRS debt?
Yes. As we all know, taxes are very complicated. We will review your
tax debt with you and help you understand which portion may be
dismissed and what portion will be addressed in the bankruptcy.
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Will filing Chapter 13 help me with my past due child support
obligation?
Past due child support is considered a “priority debt” by the
new 2005 Bankruptcy Regulations. Past due child support can be
included in your Chapter 13 filing, but it cannot be canceled.
Rather, it will be consolidated with the rest of your debts and
become part of the repayment plan as determined by the court.
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What is Chapter 7 Bankruptcy?
Also known as “liquidation” or “clean slate”, Chapter 7 lets
you discharge (wipe-out) most unsecured debt, such as credit
card balances, medical bills, and even certain taxes. Some
debts, such as child support, student loans, and recent
taxes cannot be discharged through Chapter 7.
Typically, people who file for Chapter 7 have no assets to
protect and earn below the median income.
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Can I file Chapter 7 if I have assets I want to keep?
Yes, in certain circumstances. This is called “reaffirming” a debt.
In the Chapter 7 process, you may be able to reaffirm secured debts,
such as a car loan or mortgage, if you are current on your payments
and continue to make your regular monthly payments. You can also
choose to surrender these assets, in which case any past due
balances will be discharged in your settlement.
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How will filing for bankruptcy affect my credit score?
Unfortunately, the damage is already done. Once you have any debt
that is over 3 months (90 days) past due, a vehicle that has been
repossessed, or a home in foreclosure, your credit score has already
been damaged. Filing a Chapter 7 or Chapter 13 and successfully
meeting all requirements and repayment obligations of the case are
the first steps to rebuilding your credit rating.
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How soon will I be able to re-establish my credit?
A lot sooner than you might think. While a bankruptcy can remain on
your credit report for 7 – 10 years, many bankruptcy filers are able
to qualify for auto loans, credit cards, or buy homes shortly
after filing. You may simply have to pay a higher interest rate than
someone who has unblemished credit.
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What is credit counseling? How do I enroll?
As part of the new Bankruptcy Law passed in April 2005,
clients must participate in credit counseling sessions as a
provision of their bankruptcy application. In some cases,
participants may even discover that there are other reasonable
ways to pay off their obligations and avoid filing for
bankruptcy altogether. Enrolling is easy – we offer counseling
right here in our office.
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How many times will I have to go to court?
Most cases require only 2 appearances. You will be accompanied and
represented at both hearings by your attorney.
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A
“mill” is a large firm that files many cases. These mills are
notorious for charging additional fees at every step of the case.
These types of firms have a factory approach to the entire process.
You become little more than a case number to them. Clients often do
not get the personal attention they deserve from their attorney.
Cases are often handled primarily by assistants, rather than by the
attorneys themselves.
The Sandberg Firm is most defiantly NOT a bankruptcy mill. You will
be treated with the utmost respect and dignity. We set our standards
for customer service very high and demand that every member of our
staff adhere to those standards. We never charge additional fees for
your legal needs during the life of your case.
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Am I qualified to file? Who is disqualified from filing under the
new laws?
Part of the intention of the new Bankruptcy Law was to decrease the
number of people eligible to file. Your ability to file will be
determined by a complex series of calculations that compare how much
you owe to how much you earn as well as compare what you earn to the
median income for the state of Georgia. As with any law, however,
the new bankruptcy statutes are open to interpretation. Just because
one attorney has told you that you do not qualify does not mean we
will not take your case. Remember, your initial consultation is
completely free! There’s no obligation – no strings attached.
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Will I receive a copy of my paperwork?
Yes. Once all the paperwork has been prepared, we will mail you a
very well organized set of your documents for your records. Included
in this package will be a general information quick-reference sheet
with all the important facts about your case.
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How often will I meet with my attorney?
As often as you wish. We do not restrict your right to schedule an
appointment with your attorney. Your attorney fee is a flat rate
fee, meaning that you will never be charged additional fees for any
of the services rendered on behalf of your case. This is a very
important question to ask any attorney you consider hiring. Many
firms charge a base fee with additional charges assessed for each
step of your case. We just do not believe in the nickel and dime
approach.
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