FACTS AND QUESTIONS

In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must provide the following information:

A list of all creditors and the amount and nature of their claims;

The source, amount, and frequency of the debtor's income;

1. A list of all of the debtor's property
2. The source, amount, and frequency of the debtor's income
3. A list of all of the debtor's property
4. A detailed list of the debtor's monthly living expense ( i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.)

Filing for bankruptcy can be intimidating, but at Foster Law Firm we are here to help.  Every situation is unique and we can guide you towards financial freedom.  Contact us if you have been considering filing for bankruptcy.

Many debtors assume that Chapter 7 bankruptcy is better than Chapter 13 bankruptcy because Chapter 13 bankruptcy requires debtors to repay some debt, whereas Chapter 7 bankruptcy wipes out qualifying debt without a repayment plan. But it isn’t that simple.

Each bankruptcy chapter has unique tools that help solve distinct problems. For instance, a debtor who’d like to save a home from foreclosure will likely be better off filing for Chapter 13 bankruptcy because Chapter 7 bankruptcy doesn’t have a mechanism that will allow you to keep property when you’ve fallen behind on your payment. However, sometimes Chapter 13 bankruptcy is the only option because a debtor isn’t eligible for Chapter 7 bankruptcy.

Bankruptcies will remain on a credit report for seven to 10 years, depending on if Chapter 7 or Chapter 13 was filed (as opposed to the date the debts were actually discharged).

For a Chapter 7 case, the fee is $335. For a Chapter 13 case, the fee is $310. The Bankruptcy Trustee may charge a fee of $15 to $20 when you file, as well. You may request to pay the filing fees in installments; most courts will allow it if you can show it would be a financial hardship to pay all at once. You will also have to pay for the cost of a lawyer filing your case.

Under Chapter 7 and Chapter 11, creditors, too, have the option of filing for relief against the debtor, which is known as an involuntary bankruptcy. Involuntary bankruptcies are allowed only when the requisite number of creditors with the requisite amount of debt seek to put the individual into bankruptcy against their will. The debtor has the right to file a response, after which the court determines whether the creditors are entitled to relief. If the court dismisses the involuntary bankruptcy filing, finding that it has no merit, the creditors may have to pay the debtor’s attorneys’ fees, damages for any losses the debtor experienced because of the filing, and even punitive damages to punish the creditors for the frivolous or abusive filing of a petition.