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Bankruptcy FAQs

Hunt Law Firm March 9, 2023

Bankruptcy - Business Person holding an empty walletIf you’re considering filing for bankruptcy, you likely already know that it can be a difficult and stressful process. To make it as painless as possible, you need to understand the process and what to expect if you decide to file for bankruptcy.  

Attorney Gwendolyn E. Hunt helps individuals file for bankruptcy well-prepared and well-informed. With an office in DeSoto, Texas, Attorney Hunt provides legal counsel to clients throughout Fort Worth and Dallas. Reach out to her today for skilled service, and she will answer your questions, guide you through the bankruptcy process, and more.  

Bankruptcy Frequently Asked Questions 

If you’re filing for bankruptcy, it’s important that you have answers to common questions about bankruptcy. This powerful knowledge can help you feel more informed and better prepared if you are considering this type of debt relief.  

How Do the Bankruptcy Chapters Differ?  

The two most common chapters of bankruptcy are Chapter 7 and Chapter 13. When you file for Chapter 7 bankruptcy, some of your assets are liquidated to pay off creditors before the remainder of unsecured debts is discharged.  

People who opt for Chapter 13 bankruptcy will usually have their debts restructured into a repayment plan instead. Under this plan, debtors must repay some or all of their debts over a period of three to five years, and any remaining unsecured debts may be discharged at the end of this period.  

Which Chapter Should You Choose?  

Which chapter is best for you depends on your individual situation. If you have enough income to set up a repayment plan under Chapter 13, then that may be an option worth considering. On the other hand, if you don’t have enough income to make payments under a Chapter 13 plan, then filing for Chapter 7 may be your best bet. In any case, consulting with an experienced attorney can help you feel confident that you select the right option for your needs.   

Is It Possible to Keep My House and Car If I File For Bankruptcy?  

In many cases, yes—it is possible to keep certain secured assets (such as mortgages, car loans, and secured credit cards) if they are up-to-date on payments when filing for bankruptcy.  

For example, if you are current on mortgage payments when filing your petition, then it is likely that you won’t lose your house upon filing for bankruptcy protection. The same holds true for cars—if they remain current with payments upon filing for bankruptcy protection, then there is a good chance that these assets will not need to be liquidated in order to pay off creditors.  

Will I Lose My Retirement Accounts If I File for Bankruptcy?  

Generally speaking, no—you should not lose any retirement accounts because these accounts are typically covered by federal exemptions protecting them from seizure during the bankruptcy process (although some states also provide additional exemptions). That said, if one were to withdraw money from their retirement account prior to filing for bankruptcy protection or use those funds as collateral on a loan, then those funds could become accessible during the bankruptcy proceedings depending on state laws where one resides.  

Will Filing for Bankruptcy Stop Creditor Calls?  

Once the automatic stay has gone into effect after filing, creditors should stop calling altogether unless they receive permission from either the court or the debtor’s attorney first. So yes—filing for bankruptcy should stop creditor calls soon after going into effect in most cases (unless permission has been granted).  

Can Filing for Bankruptcy Stop a Foreclosure?  

Yes, filing for bankruptcy can halt foreclosure in its tracks. When you file for Chapter 7 or Chapter 13 bankruptcy, your lender cannot proceed with the foreclosure until your case is complete. This is because of an automatic stay.  

Do I Need a Bankruptcy Attorney?  

The short answer is yes. Filing for bankruptcy requires paperwork and legal processes that must be completed correctly, or else your entire case could be jeopardized. A qualified lawyer who specializes in bankruptcy law can help ensure that all paperwork is properly completed and filed and that deadlines are met, so you get maximum protection from creditors while sorting out your financial situation in an organized manner. 

Get the Answers You Need Today 

Hopefully, you’ve gained some insight into common bankruptcy questions. However, you may have (and likely do have) more questions if you are considering filing for bankruptcy. For this reason, you may need to schedule a consultation with a bankruptcy attorney to ask your questions and address all of your concerns. You can reach out to Attorney Gwendolyn E. Hunt today and set up a free consultation to discuss your case.