Bankruptcy Law FAQ
Bankruptcy law can be frustrating. There are various nuances to it that are sometimes difficult to fully grasp. Here at RGG Law, we specialize specifically in disability and bankruptcy law. This focus allows us to give you the best and most comprehensive advice and consultation possible. We get a lot of common questions about bankruptcy law, so we decided to answer a few of those questions here. This way you can always refer back to it if you need to!
What is Bankruptcy Exactly?
Bankruptcy is defined as a process whereby an individual or business attempts to rid themselves of debt and repay creditors. You declare bankruptcy when you are unable to repay your debts.
What Types of Bankruptcy are There?
Chapter 7 and Chapter 13 Bankruptcy are the most common forms of bankruptcy to declare. Chapter 7 is declared when you don’t have the ability or income to repay debts. Chapter 13 is declared when you need a payment plan that reorganizes your debts. It allows you to pay off your debts in a way that is manageable for you.
Am I Eligible to Declare Bankruptcy?
This is determined by a set of criteria. If you meet these criteria, then you can declare bankruptcy for whichever Chapter you qualify for. Sometimes you may qualify for both, in which case you can choose which you want to declare. This can be a difficult decision, so be sure to consult with your bankruptcy lawyer.
Will Bankruptcy Relieve Me of All Debts?
It depends. Alimony, child support, student loans, and taxes will not be wiped out. So depending on your situation, you may be able to rid yourselves of all debts, but not if they include the aforementioned exceptions.
What is an Automatic Stay?
When you file for bankruptcy, an automatic stay is placed. This is a temporary action that prevents creditors from pursuing further collection activities, including repossession and foreclosure.
Won’t Bankruptcy Ruin My Financial Future?
If you’re in a situation where you need to declare bankruptcy, the opposite is true. Declaring bankruptcy is sometimes the best option for your financial future. You can begin rebuilding and getting yourself back on track.
Contact a Bankruptcy Law Expert
Here at RGG Law, we are prepared to help you with your bankruptcy case. You don’t have to be familiar with bankruptcy law, as we can explain everything and guide you through the process. Contact us today to schedule a free consultation with a bankruptcy law expert. Our bankruptcy lawyers are waiting to help you.