Q. If I file for Bankruptcy, can I keep my home?
A. If you wish to keep your house, you must make your mortgage payment(s), beginning with the first payment(s) due after the day of the filing of your case. This includes first, second, etc. mortgages.
Q. When would my Chapter 13 Payments be due each month?
A. Your Chapter 13 payment(s) are due each month on the same date as your case was filed, beginning thirty days after the filing of the petition and continuing until your case is discharged.
Q. By filing Bankruptcy, will I need to continue paying my car leases and notes?
A. Continue to pay leases, including vehicle leases, but not vehicle notes.
Q. Can I cancel my home and vehicle insurance while my case is open?
A. Maintain full insurance coverage on houses and vehicles during the entire case.
Q. What property would I need to give up?
A. Surrender to the creditor any property you do not wish to keep.
Q. What about checking/savings accounts?
A. If you have an account with a bank or credit union, and you owe them money, please close the account immediately.
Q. How does Bankruptcy help me?
A. Bankruptcy helps the debtor (the person filing bankruptcy) by getting them out of debt. This debt can be completely eliminated or paid back in one monthly lump sum. Filing bankruptcy will allow you to regain control of your finances and have a fresh start.
Q. Does everyone qualify?
A. No. Qualification is based on your household income and how much debt you have. Your attorney at Govan and Associates will help you decide the best choice for you.
Q. How long does it take to file bankruptcy?
A. It can take as long as a few weeks or as short as two days.
Q. Will filing bankruptcy stop repossessions, foreclosures, or garnishments?
A. Yes. Filing bankruptcy will place a stay on your assets and stop you from losing them.
Q. How does my debt go away?
A. When you file for bankruptcy under chapter 7 or chapter 13 an agreement is made between you and your creditors. Under chapter 13 you will repay your debts over a period of three to five years. Under chapter 7 you are relieved of your responsibility to pay the debts and creditors can no longer contact you. This is called discharge of debts.
Q. How long does the discharge take?
A. With chapter 7 the discharge usually occurs within three to four months. Under chapter 13 the discharge is complete as soon as all payments are made in the three- to five-year period.
Q. Will all my debts be discharged?
A. No. Debts like child support or criminal debts will not be discharged.
Q. What affect will this have on my credit score?
A. Filing for bankruptcy will affect your credit score. However, credit scores are not permanent and you will be able to rebuild your credit score over time.
Q. How long will bankruptcy be on my credit?
A. Seven to 10 years.
Q. Does your firm inform its clients of meeting times and dates or do I have to find that information on my own?
A. Yes. We make sure you are informed every step of the way. You will always be notified of any upcoming events in your case.
Q. What happens at my free consultation?
A. At your consultation, you can ask the attorney any questions you have. From there the attorney will help you decide your options regarding bankruptcy and give you all the appropriate paperwork and information.
Q. Do I have to make a decision at the meeting?
A. No. This consultation is for your benefit. Many clients wish to take the information home and discuss it with a family member or spouse. You can take as much time as you need to decide.
Q. After my consultation, will I be able to contact the firm if I have more questions?
A. Yes. Govan and Associates wants you to be involved. If you have any questions regarding your case you may call the firm and speak to any of out staff.