FAQ BK Questions
Frequently Asked Bankruptcy Questions
NJ Bankruptcy Law Firm
Many of the questions and answers related to bankruptcy may be new to you.
The words: “filing bankruptcy” – or – “asset protection” – or – “Stop foreclosure” – or – “Chapter 7 Bankruptcy”, – or – “Chapter 11 Bankruptcy”, – or – “Chapter 11 Subchapter V” – and/or – “Chapter 13 Bankruptcy” can create confusion to individuals in financial distress That is why I provide answers to some basic questions below in the frequently asked bankruptcy questions (FAQs) section.
The majority of the time bankruptcy clients are not regular long-term clients and not repeat clients. Clients come to me for a way to:
- improve their financial situation,
- learn about bankruptcy options that are available to them,
- gain new spending habits,
- move forward
- get debt free
- save their homes
- stop foreclosure
- stop wage garnishments
- pay past due mortgage payments over time
- stop the creditor calls
- stop the levy on my bank account
Below is a List of Some of the Frequently Asked Bankruptcy Questions with Answers
You can read through these to obtain some insight. The questions and answers will allow you to gain a preliminary understanding of some of the basics of the bankruptcy process and may provide answers to your particular situation. This list of questions is not all-inclusive.
- Bankruptcy cases and their financial circumstances are not the same.
- There is no one-size-fits-all type of bankruptcy case analysis.
- Many clients read something on the internet or listen to what others have told them about bankruptcy and believe it is true.
- Only with a thorough bankruptcy consultation will you get the best explanations and advise that fit your specific financial circumstances.
Keep in Mind:
- Bankruptcy is a specialized field of law with specific terms and codes.
- I am Board Certified in Consumer Bankruptcy Law (I am one of two attorneys in Northern NJ that are Board Certified)
- My law practice is 100% focused on NJ Bankruptcy Law
- My clients are my priority – see my client reviews.
- You can reach me on my cell (201) 446-5904.
Contact me Ralph A. Ferro, Jr., Esq. for a Free Bankruptcy Consultation to learn more.
Below is a list of some of the frequently asked bankruptcy questions (FAQs) with answers. You can read through these to obtain some insight. The questions and answers will allow you to gain a preliminary understanding of some of the basics of the bankruptcy process and may provide answers to your particular situation. This list of questions is not all-inclusive.
- Bankruptcy cases and their financial circumstances are not the same.
- There is no one-size-fits-all type of bankruptcy case analysis.
- Many clients read something on the internet or listen to what others have told them about bankruptcy and believe it is true.
- Only with a thorough bankruptcy consultation will you get the best explanations and advise that fit your specific financial circumstances.
Keep in Mind:
- Bankruptcy is a specialized field of law with specific terms and codes.
- I am Board Certified in Consumer Bankruptcy Law (I am one of two attorneys in Northern NJ that are Board Certified)
- My law practice is 100% focused on NJ Bankruptcy Law
- My clients are my priority – see my client reviews.
- You can reach me on my cell (201) 446-5904.
Contact me Ralph A. Ferro, Jr., Esq. for a Free Bankruptcy Consultation to learn more.
Do not look to the internet or others’ advice; an in-person bankruptcy consultation with me obtains the best answers to your bankruptcy questions, Ralph A. Ferro, Jr., Esq.
- I am Board Certified in Consumer Bankruptcy Law by the American Board of Certification. Click here Board Certification to learn why it is vital when hiring a Bankruptcy Lawyer when filing for Bankruptcy.
Bankruptcy Law has a strict code of procedures
- Bankruptcy has very specific rules. The United States Bankruptcy Code contains the governing rules as to bankruptcy law.
- I do not recommend that clients seek to learn about their particular bankruptcy issues by:
- searching the internet, consulting with friends, making assumptions, and/or looking at other cases.
- Each bankruptcy situation has specifics related only to you.
- You can review the answers to some questions via our FAQs (Frequently Asked Bankruptcy Questions) section below.
- If you have additional questions related to filing bankruptcy, I offer a free bankruptcy consultation.
I will set up an in-person free bankruptcy consultation and provide details and legal advice pertinent to your situation.
- When we meet, you can be sure I will take the time to provide accurate legal advice and understand your financial situation and goals.
- You are never rushed through our meetings.
- You should never file for Bankruptcy without a complete understanding of Bankruptcy.
- I am here for you.
- Call me today (201) 446-5904 for bankruptcy protection.
If you have any questions not listed in our frequently asked bankruptcy questions (FAQs) section, please don’t hesitate to call me Ralph A. Ferro, Jr., Esq. – I provide my cell phone (201) 446-5094.
Please read my client’s reviews. I hope to make you as satisfied as they are with my representation for bankruptcy needs.
- Each situation is so different. I do not have one cookie-cutter style or Plan when I meet with you.
- Many factors should be reviewed to see which Chapter is best for you and the timing of your filing.
How Much Can I Earn and Still File For Bankruptcy?
There is no limit on income. The amount of income you earn determines your eligibility for different Bankruptcy Chapters.
If There are Wage Garnishment Pending, Can’t Pay Mortgage/Rent/Bills – What Can I Do?
Set up a free consultation to discuss your bankruptcy options so that the garnishments can be stopped immediately. A bankruptcy plan can be put into place with the correct Bankruptcy Chapter to help you with your debts.
If a Creditor Levied My Bank Account and I Cannot Access My Money – What Can I Do?
The levy can be lifted and any money taken can be returned to you with the appropriate Bankruptcy Chapter filing.
How Can Bankruptcy Help Me if I am Getting Laid Off and Want To Stop Collections While I Look For A Job?
Set up a free consultation to discuss your bankruptcy options and stop collections immediately. This may be the best time for you to file bankruptcy because the appropriate timing is important in filing bankruptcy.
Can I Set Up a Bankruptcy Payment Plan To Pay Creditors?
Yes. Chapter 13 Bankruptcy allows you to reorganize your debts. When we meet for a Free Bankruptcy Consultation, I will advise you what debts and what portion of your Debts, if any, you will need to pay back over time.
Can I Stop a Foreclosure?
Yes, I can Stop a Foreclosure Immediately. Even on the day of the Sheriff’s Sale, the sale can be stopped that day.
Can I Get Protection from Creditors So I Can Refinance My Mortgage?
Yes. However, when we meet for a free bankruptcy consultation, it may be beneficial to File a Chapter 13 Bankruptcy Instead.
Can I Stay in My Home Until the Foreclosure Sale?
Yes. However, you should set up a Free Bankruptcy Consultation to see your options to keep your Home.
Can I Reorganize My Past Due Mortgage Payments so I Can Keep My Home or Car?
Yes, This is one of the many benefits of a Chapter 13 Bankruptcy. Your mortgage arrearages can be spread out over a 60-month period.
Do I Still Make My Car and/or House Payments in Bankruptcy?
Yes. If you would like to keep your car, you must continue to make your lease or car payments as well as your mortgage payments.
Do I Have to List All of My Creditors in the Bankruptcy Petition?
Yes. You cannot pick what creditors you would like to include in your bankruptcy. All Creditors must be listed in your Bankruptcy Petition.
Can I Still Use My Credit Cards When I File Bankruptcy?
No. You cannot use your credit cards when you file bankruptcy. All your creditors will cancel your cards since they will be notified of your bankruptcy within 24-48 hours. However, you can reapply when your bankruptcy is completed. Many Debtors immediately qualify for new credit cards.
Can I Keep Any of My Credit Cards While in Bankruptcy?
No. You cannot keep/use any credit cards while in Bankruptcy.
If I am Married and File Bankruptcy, Does my Spouse Have to File Too?
No. A spouse is not required to file bankruptcy. However, the household income is analyzed for bankruptcy planning. Sometimes it is beneficial for both spouses to file and sometimes no. Every case is different.
If I Filed a Joint Bankruptcy Petition, Do Both My Spouse and I Attend the Meeting of Creditors?
Yes. All Debtors who file Bankruptcy must attend the Meeting of Creditors which is referred to as a 341a Meeting of Creditors.
How Long Does the Bankruptcy Process Take from Start to Finish?
For a Chapter 7, it is normally around 90 days. A Chapter 13 Bankruptcy can take from 3-5 years. However, I can file an emergency/immediate bankruptcy the same day.
If I am Listed on a Bank Account That’s Not Mine – Does this Asset Get Listed as an Asset?
It depends. If you are listed on the bank account as an owner, then that asset must be listed. You can, however, indicate what portion or percentage of the funds are yours.
If I Co-Signed for Another Person, Do I Have to Include that Debt?
Yes. When your Co-Sign a debt for another Person, you are also responsible for that Debt. Therefore, it must be included in your Bankruptcy Petition.
If My Salary Varies from Month to Month, What Amount Should I List as Income?
The average of your last six month income is included when you file bankruptcy in consumer cases. For business cases, more information is gathered to determine your income.
Can I Discharge My Student Loan Debt in Bankruptcy?
Sometimes. However, there are very strict guidelines for discharging student loan debt. Each individual case must be evaluated.
Do I Have to File My Income Tax Returns While in Bankruptcy?
Yes. You must have all your Income Tax Returns current when you file Chapter 13 bankruptcy and you must continue to file your Income Tax Returns while in Chapter 13 Bankruptcy. In a Chapter 7, if you are required to file tax returns, then your last filed tax return is required and/or your current tax return (depending on your particular case).
Is Back Child Support Dischargeable in Bankruptcy?
No. Child Support is not Dischargeable in Bankruptcy.
Is Alimony Dischargeable in Bankruptcy?
No. Alimony is not dischargeable in Bankruptcy. Your alimony obligations are listed and your partner is informed of your bankruptcy.
What is Disposable Income?
Disposable Income is the amount of money that you have left after paying all your normal and required living expenses and any retirement savings.
Who Can File Bankruptcy in New Jersey?
Any individual that lives or owns property in New Jersey.
Any business that is headquartered or has presence in New Jersey.
Can Creditors Still Contact Me When I File Bankruptcy?
No. Creditors cannot contact you from the day you file your bankruptcy petition. There are strict regulations against creditors so they cannot contact you.
Can I Continue to Add to My 401K During Bankruptcy?
Yes. You can continue to add to your normal 401K deductions/savings.
Are My Retirement Accounts Protected in Bankruptcy?
Yes. Retirement Accounts have bankruptcy protection. Your retirement savings will not be touched at all when you file for any chapter in bankruptcy.
If I File for Bankruptcy, Does My Spouse Have to Join In the Bankruptcy?
No. One spouse can file bankruptcy without the other.
If I Have Wage Garnishments, Judgments or Bank Levies, Is It Too Late to File Bankruptcy?
No. You should immediately make a Free Bankruptcy Consultation with me It is not too late at all.
Do I Pay Back All My Debts in a Chapter 7 Bankruptcy?
No. If you qualify for a Chapter 7 Bankruptcy, your unsecured creditors are not paid back at all.
Do I Have to Pay Back All of My Debts in a Chapter 13 Bankruptcy?
Not necessarily. Depends on what you own and what your earn. During my free bankruptcy consultation, I will advise you. The amount you have to pay back is based upon what you can afford. It is not a set amount. You pay back only what you can afford.
Will my employer be notified of my bankruptcy petition?
Unless you owe your employer money, your employer generally will not find out about your bankruptcy. Your employer will not be notified of your bankruptcy.
How to Stop a Sheriff’s Sale?
Even if the Sheriff’s sale is scheduled for that day, I can help you. We can file an emergency filing to keep your home. I would not wait until the last day or after you have already been given adjournments to set up a consultation with me. We can Stop a Sheriff’s sale.
Can I Keep My Car?
In most cases, you should be able to keep your car (should you choose). However, you must continue to make the monthly lease or financing payments. When we meet, I can explain to you how a Reaffirmation Agreement works.
Can I Be Fired From My Job for Filing for Bankruptcy Protection?
A private employer cannot legally terminate employment or discriminate with respect to the employment of any individual solely on the basis of that individual’s bankruptcy filing. However, if you are applying for a job, an employer may review your credit record, which would indicate your bankruptcy filing.