Frequently Asked Questions

Questions about the new bankruptcy laws? We've got answers!

FAQ

Q: Haven't bankruptcy laws changed? Can I still file?

Q: What is the "means test" and how does it work?

Q: Can I keep my house/car/boat when I file bankruptcy?

Q: How much does bankruptcy cost?

Q: What kinds of debts can I discharge through bankruptcy?

Q: Why do I need a lawyer to file bankruptcy? Can't I do it myself?

Q: Haven't bankruptcy laws changed? Can I still file?

A: While it's true that bankruptcy laws recently changed with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the changes are not as drastic as you might think. Generally, more paperwork and documentation is required, and you will be required to participate in debt management classes. Your attorney can explain these requirements to you in more detail. The truth is, most people who previously qualified for chapter 7 bankruptcy protection still do.

Q: What is the "means test" and how does it work?

A: The means test is a formula that compares your income to the median income for your state. It takes into account your dependents and expenses, and produces a result that determines which type of bankruptcy you may file. If the means test indicates that you must file a chapter 13 bankruptcy, it can also calculate the portion of your income that should be paid into the plan each month.

Q: Can I keep my house/car/boat when I file bankruptcy?

A: Usually, yes. But every case is different. Generally, the bankruptcy code allows individuals to keep personal household belongings–things like clothing, kitchen goods, bedding , furniture, and any tools you need to make a living. Your vehicle and home are also protected in most circumstances, up to a certain dollar amount. We strongly recommend that you seek the advice of an experienced attorney who can help you determine how to best protect your assets.

Q: How much does bankruptcy cost?

A: Our fees are reasonable and competitive. Because our goal is to tailor a solution specific to your needs, fees vary. Please call us for a free, confidential consultation. We can discuss your needs and quote you a price at that time.

Q: What kinds of debts can I discharge through bankruptcy?

A: Normally, you can discharge credit card debt and charge accounts, medical bills, repossession deficiencies, personal loans (including payday loans,) and under some circumstances, even taxes. Other types of debt may also be discharged in bankruptcy–check with your attorney. Some types of debts are not dischargeable in bankruptcy, for example: most student loans, child support payments, and some taxes.

Q: Why do I need an attorney to file bankruptcy? Can't I do it myself?

A: While it is legally possible to file without the assistance of an attorney, we don't recommend it. The bankruptcy code is complex, and we think a bankruptcy lawyer is well worth the cost. It's possible that the advice of an attorney can help you retain your possessions and negotiate the best deal with creditors. Also, only an attorney can provide representation at required court hearings and appearances.

It's important to note the differences between an attorney and a document preparer. Document prepararers may provide bankruptcy forms and fill them out using the information you provide, but they are not attorneys. In other words, a document preparer cannot provide legal advice or representation, cannot answer questions about your case, and cannot represent you at required court appearances. Additionally, if a problem arises with your case and you haven't hired an attorney, you're on your own. Bankruptcy can be a stressful, emotional process. Let us put our experience to work to help you through it.

The information on this site is provided for informational purposes only. This site is not intended to provide legal advice, and is not guaranteed to be correct, complete, or up-to-date. Use of this site does not establish an attorney-client relationship. Armstrong Bankruptcy Law Offices is a debt relief agency.