Will I lose property?
Mortgage lenders are usually more than happy to keep accepting your current monthly payments both before and after a
Chapter 7 Bankruptcy. This is called reaffirming your debt. In the case that you are behind on your mortgage, some debtors choose to file a
Chapter 13 in order to consolidate their arrearage. You can choose to reaffirm any of your debts. For example, many debtors wish to keep their vehicle(s), although they still owe on it. You choose which debt you want to discharge.
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information packet
Frequently Asked Questions
What is Bankruptcy?
- Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. The intent of the bankruptcy law is to enable debtors to get a fresh new beginning in their financial affairs.Back to top
What is Chapter 7 Bankruptcy?
- Chapter 7 Bankruptcy is a process provided for under United States Federal bankruptcy law by which you are entitled to a fresh new beginning.Back to top
What is Chapter 13 Bankruptcy?
- Chapter 13 Bankruptcy is an interest-free debt repayment plan through which you consolidate your debts and make a payment on your debt over a 3 to 5 year period. In a Chapter 13 debt repayment plan the creditors cannot collect from you and the creditors are required by Federal Court order to adhere to the terms of the plan.Back to top
How does Chapter 13 prevent foreclosures?
- If your home is presently in foreclosure, a Chapter 13 bankruptcy filing will stop the foreclosure any time prior to the sale, and allow you to repay your mortgage arrears through your Chapter 13. You will still be obligated to make all future mortgage payments directly to the mortgage company, but they may not foreclose to collect any outstanding mortgage payments.Back to top
How should I deal with creditor calls before, during, or after filing bankruptcy?
- Tell the creditor that you have retained Noyes Law Office for bankruptcy. Give them our contact information and hang up.Back to top
Can I be fired for filing bankruptcy?
- NO! That would be discrimination and the Law prohibits government units and private employers from discriminating against you because you filed bankruptcy on dischargeable debts.Back to top
Does my spouse also have to file bankruptcy?
- NO! There is the option to file either an individual or joint bankruptcy.Back to top
How does my bankruptcy affect my non-filing spouse?
- If all or most of the debts are in your name only, your spouse may not have to file. Creditors usually cannot pursue a non-filing spouse, unless he or she is legal a co-debtor on the debt. Additionally, the bankruptcy should not be reflected on the non-filing spouse's credit report.Back to top
Will I lose any personal assets?
- NO! Clients are often worried that they will lose whatever assets they may have. This is not true. The law is very generous and allows for the person with debt to keep certain property deemed "exempt" in the bankruptcy. Any assets over and above the allowed exemptions could be seized by the trustee and distributed to creditors. Most situations are such that the assets of the person with debt fit within the allowed exemptions and the bankruptcy is deemed a "no-asset" case. In such cases, the person with debt is allowed to keep all of their property acquired prior to filing bankruptcy and is allowed to keep post-petition assets as well.Back to top
Will I lose my house?
- Mortgage lenders are usually more than happy to keep accepting your current monthly payments both before and after a Chapter 7 bankruptcy. This is called reaffirming your debt.Back to top
Are pension and 401(k) plans exempt?
- YES! These assets are considered exempt in bankruptcy. However in a Chapter 13 case, the debtor may not be able to make contributions to a 401(k) plan.Back to top
Which debts cannot be discharged?
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- Discharged:
- Credit Card Bills
- Medical Debt
- Repossessions
- Collections
- Back rent, utilities etc.
- Miscellaneous Consumer Debt
- Not Discharged:
- Student Loans
- Child Support
- Most back Taxes
- Criminal fines, penalties and restitution
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Will I be able to keep my credit cards?
- Many credit card companies are willing to reaffirm your debt with them and reinstate your line of credit after the bankruptcy.Back to top
How will filing bankruptcy affect my credit score?
- When negative information in your report is accurate, only the passage of time can assure its removal. Most clients receive offers of credit as soon as they are discharged.Back to top
Are there any alternatives to bankruptcy?
- Debt Relief specialists* will negotiate with your creditors for better interest rates on your behalf and then calculate your monthly savings.Back to top
How much does it cost?
- Noyes Law Office has a rate for uncontested bankruptcy. Please call for more information.Back to top
How long does it take?
- Once we file your case your hearing will be 20 to 40 days later and you will be discharged about 8-9 weeks provided that all responsibilities of the client are completed.Back to top
Will my doctor continue to treat me if I discharge his bills?
- Many county doctors are required to treat you. Some private doctors do not. County hospitals are required to treat you. None of our clients have been refused medical treatment.Back to top
Are payment plans available for attorney fees?
- YES! Please contact Noyes Law Office for more information.Back to top
How can I get a copy of my credit report?
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We have the capability to download your credit report. The fee is $35 for an individual or $50 for a joint. You can also get a copy of your credit report at www.equifax.com.
Beware! Credit reports are not always 100% accurate.
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Is there anything that I should avoid doing?
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Do NOT:
- use credit cards or write any checks you may not be able to cover.
- continue paying credit card and other bills you will discharge.
- transfer any property.
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I feel guilty about filing for bankruptcy.
- Many celebrities such as Mike Tyson, Burt Reynolds, Toni Braxton, and Walt Disney, to name a few, have filed for bankruptcy. This is the most common misunderstanding about bankruptcy. Courts view bankruptcy as the Responsible Approach if you can no longer pay your debt.Back to top
What's the deal with the new bankruptcy laws?
- How does it affect me? The new bankruptcy law started on October 17th, 2005. It is designed to force more debtors into a repayment plan under Chapter 13. It also requires two classes (online or telephone) and has many procedural requirements like filing copies of your last 60 days worth of pay stubs from work and your most recent tax return with the Court. Most people should still be able to file a Chapter 7 (full discharge).Back to top
I am interested in filing bankruptcy. What information should I start gathering?
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- Credit Counseling Certificate: You can obtain this online or by phone from Money Management. On Money Management's website, click Bankruptcy Counseling and follow their instructions.
- All debts you intend to discharge. (Credit cards, medical, etc.) with account numbers and complete addresses. (Statements or documentation).
- Secured creditor address (Mortgage, car, etc.) with account numbers and complete addresses. (Statements or documentation).
- Last 6 months of pay information from employer (including spouse, even if they are not filing).
- Monthly household expenses. (Rent, Mortgage, utilities, etc.)
- Most recent State and Federal income tax records.
- W2's for the last 2 years.
- Legal Description of Iowa homestead from your abstract, warranty deed, or tax invoice.
- Photo ID and Social Security Card or proof of Social Security Number.
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