FREQUENTLY ASKED QUESTIONS
Q: How do I know if / what type of bankruptcy is right for me?
A: As each person’s situation is unique, the best approach is to meet with our attorney for a complimentary consultation during which he’ll provide guidance on which solutions make the most sense to achieve your goals.
Q: What is the difference between Chapter 7, Chapter 13 and Chapter 11 bankruptcies?
A: The easiest explanation is that Chapter 7 is designed for those working on a limited income where their outgoing is greater than incoming, Chapter 13 is for those with an above median income but not enough to meet their financial commitments and Chapter 11 is most appropriate for an individual or business with significant funds, assets and debts.
Q: If I file for bankruptcy, how much will it cost?
A: The fees associated with filing bankruptcy depend on a number of factors including type, what steps are needed to protect your assets and if you have any repossessions, foreclosures etc. The best approach is to meet with our attorney for a complimentary consultation during which he’ll provide a quote tailored to your unique circumstances.
Q: Will I be able to keep my car, my home and my family treasures if I file bankruptcy?
A: It depends on the type of bankruptcy and value of the assets. For example, Arizona laws allow for retaining cars, homes and certain possessions within specific guidelines when filing a Chapter 7 bankruptcy. An example of this, in most cases, is a car whose equity doesn’t exceed $6K or a home with no more than $250K in equity. The best way to find out if you are protected is to meet with our attorney.
Q: How soon after hiring your firm will the creditor calls stop?
A: Upon retainment of our firm, you’ll be able to redirect your creditors to our firm and we’ll handle it from there.
Q: I own a business that is struggling. Can bankruptcy help me get it back on track?
A: Bankruptcy is a tool oftentimes used by businesses to restructure and get a handle on financial commitments that have grown beyond revenue. The best way to find out if a bankruptcy can help is to meet with our attorney for a complimentary consultation during which he’ll provide a quote tailored to your unique circumstances.
Q: My car was (or is in the process of being) repossessed. Can you help?
A: Absolutely! However, you’ll need to get in touch with us asap because there is a short window of time (a few short days) for taking action.
Q: My home looks to be going in foreclosure soon, can bankruptcy help me stop that process?
A: It depends - sometimes it is the perfect solution! The best way to find out your options is to meet with our attorney for a complimentary consultation during which he’ll talk through your unique circumstances and provide guidance on your options.
Q: Is my retirement account protected in a bankruptcy?
A: Although retirement accounts come in many different forms and vehicles, in most cases retirement accounts are almost completely protected unless you have over a million dollars in retirement savings.
Q: What is the difference between debt settlement and bankruptcy?
A: The biggest difference is that with a bankruptcy, creditors are required to participate whereas with debt settlement they are not which can result in difficulties down the line in the form of inability to make monthly payment, credit score issues, lawsuits. It’s best to chat with an attorney before making a decision on which direction to go.