Frequently Asked Questions About Bankruptcy

The different kinds of bankruptcy each serve a different purpose:

• Chapter 7 or liquidation bankruptcy uses a court-appointed trustee to liquidate your assets to repay debts and forgive all other unsecured debts you cannot repay. This type of bankruptcy is for those facing debt they can never repay and is a final recourse.
• Chapter 13 is a type of bankruptcy that allows you to use your disposable income to pay back debts over three to five years without having to liquidate your assets. Thus, it allows those in not as bad situations as Chapter 7 filers to get out of debt without losing their hard-earned assets.
• Chapter 11 targets small businesses, allowing them to pay back debts while still operating their business. Congress intended this bankruptcy to allow small businesses to escape economic hardship without having to close their doors.

It varies depending on what type of bankruptcy you are going through, but the average time for the bankruptcy process can take anywhere from three to five years.

While bankruptcy uses a court-appointed trustee and court system to formulate a debt repayment and forgiveness plan, debt settlements skip the legal process and usually use an informal third party to negotiate a repayment and forgiveness settlement between the two. For less intricate and more straightforward debts, debt settlement may be the quickest and easiest option.

Filing for bankruptcy may affect your credit score long-term. It can also be extremely complex and, if not done with care, may end up putting an individual into greater financial insecurity. Filing for bankruptcy may also make finding a job or buying a home in the future somewhat more difficult until you can prove your financial security. That said, those who are in a position to need bankruptcy may already be experiencing some of these difficulties.

If done well, bankruptcy can help you start moving toward financial success. Bankruptcy discharges any remaining unsecured debts and ends wage garnishments or other repayment measures after you have completed the court-mandated payment plan, but only if you have completed it. Make sure you talk to an attorney to ensure the plan is right for you and feasible so that you can succeed through the process.

Depending on the type of bankruptcy you file for, a specific form will need to be filled out and submitted to the court for review. Since bankruptcy uses the court system to admit that you are in debt and then formulate a court-supervised plan to pay off your debts, it is best to allow a qualified attorney to handle the filing process for you. To complete bankruptcy proceedings, an individual must file with the courts, negotiate with creditors and the court-appointed trustee for a mutually beneficial payment plan, and then be willing to see the process through to completion. If done well, bankruptcy can be a great way for those with overwhelming debt to get a second chance.

Our mission is to provide personalized legal services to our clients.  We are a small firm and you will deal directly with YOUR attorney.  Most other bankruptcy firms operate on large volume and you may never meet an attorney until you must see them in a court room.  Not with our firm.  

Courts remain open but until further notice, all hearings are being held vie telephone.  There should be no other impact on your case.

Yes.

Once you chose to retain our firm, you will be provided an online financial worksheet that you can complete at your leisure.  This information must come from the client and it is utilized to draft the papers that are ultimately filed with the court.  You will also be required to take a Debtor Education course before you file.  The cost of this course is included in your fee and is not an additional charge that many other attorneys would require that you pay.

Documents Needed

1. All of your current bills and collection letters.
2. Tax returns for last 2 years.
3. Six months pay stubs for you and your spouse (even if your spouse will not be filing, this is important).
4. All bank statements for the 3 month period prior to filing.
5. All legal documents pertaining to recent divorces or lawsuits.
6. Copies of all life insurance policies that have a cash value. You do not need to bring copies of term life policies.
7. All judgments or court orders entered against you or in your favor.
8. All executory contracts; for instance, leases, contracts for sale or deed and lease-purchase contracts.
9. Copies of your (and your spouse, if filing) Driver License and Social Security Cards

Yes, all discussions are protected by attorney-client privilege.

Within 60 minutes, during office hours.

Same as phone calls, an attorney will conduct all communications.

When you call our office, an attorney will answer your call.  If we do not answer, it is because we are assisting another client but we pledge to return your call within 60 minutes.

LoBue Law will meet with you at our office, on the phone or via video conference to evaluate your financial situation, if Bankruptcy is a viable option for you (it is not for everyone), we will make a recommendation on a course of action. You will always meet with an attorney, never a paralegal or other staff.