FREQUENTLY ASKED QUESTIONS
Bankruptcy is a legal way for people or businesses who owe more money than they can pay to either have their debts wiped out (Chapter 7), or repaid in part or in full over time (Chapter 11, 12 or 13). The type of bankruptcy which may be filed depends on the amount of assets, and the current income of the party seeking to file bankruptcy. Each person’s situation is different so it is imperative to consult with a bankruptcy professional in order to determine, which type of bankruptcy is available under your specific circumstances. Regardless of which Chapter of the Bankruptcy Code you file under, once the bankruptcy petition is filed, the Bankruptcy Code provides that creditors must immediately stop all collection efforts against you.
In 2005 the Bankruptcy Code was changed to provide that you must fall below certain income guidelines in order to file bankruptcy. You must also now take two credit counseling classes, one before you are allowed to file for bankruptcy and the second class before your case is finished. Classes may be taken in person, on the telephone or on the internet.
Please refer to the links page for further information on the income guidelines and course providers as this information is subject to change.