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Personal Bankruptcy

Page Law PLLC Oakland County Royal Oak, MI


FREQUENTLY ASKED QUESTIONS


 

Are you overwhelmed with your debt?
➢ Bankruptcy can provide a fresh start allowing you to move toward a financially secure future.

Are you behind on your mortgage?
➢ Bankruptcy can help you get current on your mortgage payments and taxes, and we might be able to discharge any subsequent mortgages you might have.

Are you being garnished?
➢ Bankruptcy can stop garnishment and may stop repossession of your vehicle.

DO’S AND DON’TS OF BANKRUPTCY

Do’s:
➢ Do seek a bankruptcy attorney before filing any papers.
➢ Do be honest with your attorney. This way your attorney can give you the best advice possible.
➢ Do continue to make timely payments on assets you intend on keeping.
➢ Do talk to your attorney before making any major financial decisions.

Don’ts:
➢ Don’t pay back your relatives or friends.
➢ Don’t run up your credit cards before you file.
➢ Don’t put property you own into someone else’s name to avoid it being taken by creditors.
➢ Don’t buy any luxury items prior to filing.
➢ Don’t attempt to sell your property for less than it is worth.
➢ Don’t take any major cash advances off credit cards prior to filing for bankruptcy.

MYTHS ABOUT BANKRUPTCY

➢ A debt counseling service can help me eliminate my debts.
False. Debt counselors cannot get rid of your debts nor can they stop your creditors from harassing you. When you file for bankruptcy, however, the law prohibits many creditors from taking any legal action against you.

➢ If I file for bankruptcy, I will lose my house and car.
Not true. You may be able to keep things like this out of the bankruptcy process completely.

➢ Bankruptcy will ruin my credit record.
After bankruptcy you will be given a fresh start. If you keep on top of new debts, your credit record should actually improve.

➢ I won’t ever be able to get credit after my bankruptcy.
False. Since many, if not all, of your debts will be wiped out after bankruptcy, many creditors will see you as a good credit risk after your bankruptcy.

BENEFITS OF CHAPTER 7
➢ Chapter 7 Eliminates:
o Credit Card debts
o Medical debts
o Personal loan debts
o Lawsuit debts
o Judgments-unless fraud or criminal related
o Deficiency debts
o Personal Injury Debts except DWI and criminal injury

BENEFITS OF CHAPTER 13

➢ Stops home foreclosures and allows homeowner to pay off back-mortgage payments.
➢ May be able to discharge your second mortgage.
➢ Stops car repossession.
➢ Stops interest on income taxes.
➢ You’ll make one monthly payment to the bankruptcy trustee for distribution

RE-BUILDING YOUR CREDIT

➢ Open a checking or savings account.
➢ Pay your bills as they come.
➢ Take 10% of your paycheck and deposit it into your savings account to build up an emergency fund.
➢ Pay any debts that survived the bankruptcy on time.
➢ Check your credit reports every year and make sure they’re accurate.
➢ Live within your means.

“The gold in one’s heart is more precious than the gold in one’s purse”
— Confucius

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We are a Debt Relief Agency helping people file for bankruptcy relief under the Bankruptcy Code.


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