Bankruptcy Frequently Asked Questions
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What is Bankruptcy?
Bankruptcy is a Federal Law (11USC) created for the purpose of giving debt relief to individuals and
businesses. Congress recognized that many people many people will run into financial difficulty
throughout their life time so they created bankruptcy laws to protect them from their creditors.
Congress understood that there will be many people who want to repay their creditors, but due to
unforeseen hardships (i.e., divorce, high medical bills, loss of a job, etc) they simply cannot repay
their creditors.
How do I know if I qualify?
The “New” bankruptcy law that was passed in October of 2005 was intended by Congress to make
it more difficult for individuals to file bankruptcy. However, in my experience, most people who
qualified for chapter 7 bankruptcy before the new law was passed, still qualify for Chapter 7
bankruptcy. Those that no longer qualify, still qualify for Chapter 13 bankruptcy. The question of
which bankruptcy chapter is right for you, of course, depends on many factors specific to your case
and can only be answered after a consultation.
Is bankruptcy right for me?
Bankruptcy is not right for everyone. Bankruptcy should be used only as a last resort. However, the
question then becomes, “When is it a last resort?” We can help you answer this question. My basic
rule to answer this question is, “Can you repay your debts within a reasonable period of time AND
still live a comfortable, stress free life? If not, then bankruptcy should be a strong consideration.
What advice can a bankruptcy attorney give me?
An attorney can give you candid advice on the following:
1. Whether or not you should file bankruptcy. Unlike some attorneys, I will advise you NOT to file
bankruptcy if I do not believe it would be in your best interest;
2. How to plan, if necessary, for the bankruptcy filing;
3. The cost to file bankruptcy;
4. The pros and cons of filing bankruptcy;
5. Outline the bankruptcy process;
6. What can be done to rebuild your credit after you file bankruptcy.
How should I choose a bankruptcy attorney?
You must feel comfortable with the attorney you hire. The following are some items to look for:
1. Make sure the attorney offers a free consultation;
2. Make sure the attorney spends as much time with you as necessary to fully answer all of your
questions;
3. Make sure the attorney gives you candid advice as to whether or not you should file bankruptcy;
4. Make sure the attorney gives you candid advice about which chapter of bankruptcy you should
file. The attorney fees for a chapter 13 are typically much higher than those in a chapter 7.
5. Make sure the attorney is highly experienced.
Is my first consultation free?
The first consultation is FREE and there is no obligation to file bankruptcy and no obligation to hire
my firm.
Do I have any obligation to file bankruptcy?
ABSOLUTELY NOT. Don’t let anyone tell you that you MUST file bankruptcy. There may be financial
reasons why it would definitely be in your best interest to do so, but there will never be an
obligation. If you meet with me, you will get very candid advice about whether or not you should file
for bankruptcy. Many of my clients come to us by referrals from former clients AND people who met
initially with me but did not end up filing after receiving candid advice from me.
What is the cost of Bankruptcy?
The cost to file bankruptcy depends on many factors: which chapter is filed (chapter 7 or chapter
13), the type and number of creditors, the type and amount of non-exempt (if any non-exempt
assets), the existence of any lawsuits pending against you, etc. Therefore, I cannot quote you a fee
until after I conclude the initial consultation. It would be quite simple for our firm, like many others, to
have a “one price” policy whereby I quote and charge everyone the same price to file bankruptcy.
However, I believe most people do not have complex financial issues. In these situations, I am able
to lower my fee to make the filing of a bankruptcy more affordable to more people.
What do I need to bring to my first consultation?
Very little. The objective of the first free consultation is to educate and inform you of all your
bankruptcy and non-bankruptcy options, answer all of your questions, and to gather enough
information about your financial situation so I can give you candid advise about your options.
Therefore, the only thing I really need at your first free initial consultation is YOU. I simply need the
“big picture.” I need to ask you a lot of questions. While not necessary at your first free initial
consultation, it will be helpful if you can bring some of your most recent pay stubs and a list of your
creditors with the approximate amount owed.
What is an exempt asset?
An exempt asset is an asset that cannot be taken away from you by the bankruptcy trustee if you file
bankruptcy. Asset exemption can become complicated so an experienced bankruptcy attorney will
be helpful. Very few people I meet during their free initial consultation have any non-exempt
property. Most people have a home, a car, household items, and retirement accounts, all of which
are exempt in bankruptcy. Therefore, it is only on occasion that I meet someone who has non-
exempt assets.
Can I keep my property?
Usually. Very few people that I meet during their free initial consultation have any non-exempt
property. Most people have a home, a car, household items, and retirement accounts, all of which
are usually exempt in bankruptcy. It is only on occasion that I meet someone who has non-exempt
assets. Therefore, the vast majority of people I meet will be able to keep all of their property.
Will creditors still be able to harass me?
No. One of the great benefits of filing bankruptcy is, as of the date your bankruptcy is filed, all of
your creditors are prohibited from calling you, writing you letters, or taking any further collection
activity against you. This means your creditors will no longer be able to call you at home or at work
or at all hours of the day and night, they won’t be able to send you nasty collection letters, and they
won’t be able to file a lawsuit against you.
Can I pay some creditors if I want to?
Sometimes, depending on the amount of the debt. However, the question then becomes, “Why do
you want to?” Some clients want to re-pay some creditors for the following reasons: the creditor
may be a family member, the debt may be a small amount, or you may want to continue using the
services of the creditor after you file bankruptcy. If you want to continue paying a creditor (ie, a
credit card) even after you file bankruptcy, please be aware that the creditor will most likely
terminate your privileges after you file bankruptcy. While there may be some legitimate reason to
repay some creditors, in most cases it is not in your best interest to do so.
Does my spouse have to file with me?
No. However, it may be in your spouse’s best interest to do so. I will advise you during your free
initial consultation whether or not it is in your and your spouse’s best interest to exclude your
spouse from your bankruptcy fling. It will be entirely your spouse’s decision as to whether or not he
or she files bankruptcy with you.
Will filing bankruptcy hurt my credit?
This is one of the most frequently asked questions we get and it is a very good question. Our
response to this question is always, “How is your credit now?” If you have good credit and you are
current with your debt obligations, then, yes filing bankruptcy will most likely hurt your credit. But if
you are considering filing bankruptcy, then you are probably in a situation where your credit is
about to go bad anyway. However, if you already have bad credit and are behind on payments to
creditors then I do not believe filing bankruptcy will substantially hurt your credit.
Bankruptcy is a Federal Law (11USC) created for the purpose of giving debt relief to individuals and
businesses. Congress recognized that many people many people will run into financial difficulty
throughout their life time so they created bankruptcy laws to protect them from their creditors.
Congress understood that there will be many people who want to repay their creditors, but due to
unforeseen hardships (i.e., divorce, high medical bills, loss of a job, etc) they simply cannot repay
their creditors.
How do I know if I qualify?
The “New” bankruptcy law that was passed in October of 2005 was intended by Congress to make
it more difficult for individuals to file bankruptcy. However, in my experience, most people who
qualified for chapter 7 bankruptcy before the new law was passed, still qualify for Chapter 7
bankruptcy. Those that no longer qualify, still qualify for Chapter 13 bankruptcy. The question of
which bankruptcy chapter is right for you, of course, depends on many factors specific to your case
and can only be answered after a consultation.
Is bankruptcy right for me?
Bankruptcy is not right for everyone. Bankruptcy should be used only as a last resort. However, the
question then becomes, “When is it a last resort?” We can help you answer this question. My basic
rule to answer this question is, “Can you repay your debts within a reasonable period of time AND
still live a comfortable, stress free life? If not, then bankruptcy should be a strong consideration.
What advice can a bankruptcy attorney give me?
An attorney can give you candid advice on the following:
1. Whether or not you should file bankruptcy. Unlike some attorneys, I will advise you NOT to file
bankruptcy if I do not believe it would be in your best interest;
2. How to plan, if necessary, for the bankruptcy filing;
3. The cost to file bankruptcy;
4. The pros and cons of filing bankruptcy;
5. Outline the bankruptcy process;
6. What can be done to rebuild your credit after you file bankruptcy.
How should I choose a bankruptcy attorney?
You must feel comfortable with the attorney you hire. The following are some items to look for:
1. Make sure the attorney offers a free consultation;
2. Make sure the attorney spends as much time with you as necessary to fully answer all of your
questions;
3. Make sure the attorney gives you candid advice as to whether or not you should file bankruptcy;
4. Make sure the attorney gives you candid advice about which chapter of bankruptcy you should
file. The attorney fees for a chapter 13 are typically much higher than those in a chapter 7.
5. Make sure the attorney is highly experienced.
Is my first consultation free?
The first consultation is FREE and there is no obligation to file bankruptcy and no obligation to hire
my firm.
Do I have any obligation to file bankruptcy?
ABSOLUTELY NOT. Don’t let anyone tell you that you MUST file bankruptcy. There may be financial
reasons why it would definitely be in your best interest to do so, but there will never be an
obligation. If you meet with me, you will get very candid advice about whether or not you should file
for bankruptcy. Many of my clients come to us by referrals from former clients AND people who met
initially with me but did not end up filing after receiving candid advice from me.
What is the cost of Bankruptcy?
The cost to file bankruptcy depends on many factors: which chapter is filed (chapter 7 or chapter
13), the type and number of creditors, the type and amount of non-exempt (if any non-exempt
assets), the existence of any lawsuits pending against you, etc. Therefore, I cannot quote you a fee
until after I conclude the initial consultation. It would be quite simple for our firm, like many others, to
have a “one price” policy whereby I quote and charge everyone the same price to file bankruptcy.
However, I believe most people do not have complex financial issues. In these situations, I am able
to lower my fee to make the filing of a bankruptcy more affordable to more people.
What do I need to bring to my first consultation?
Very little. The objective of the first free consultation is to educate and inform you of all your
bankruptcy and non-bankruptcy options, answer all of your questions, and to gather enough
information about your financial situation so I can give you candid advise about your options.
Therefore, the only thing I really need at your first free initial consultation is YOU. I simply need the
“big picture.” I need to ask you a lot of questions. While not necessary at your first free initial
consultation, it will be helpful if you can bring some of your most recent pay stubs and a list of your
creditors with the approximate amount owed.
What is an exempt asset?
An exempt asset is an asset that cannot be taken away from you by the bankruptcy trustee if you file
bankruptcy. Asset exemption can become complicated so an experienced bankruptcy attorney will
be helpful. Very few people I meet during their free initial consultation have any non-exempt
property. Most people have a home, a car, household items, and retirement accounts, all of which
are exempt in bankruptcy. Therefore, it is only on occasion that I meet someone who has non-
exempt assets.
Can I keep my property?
Usually. Very few people that I meet during their free initial consultation have any non-exempt
property. Most people have a home, a car, household items, and retirement accounts, all of which
are usually exempt in bankruptcy. It is only on occasion that I meet someone who has non-exempt
assets. Therefore, the vast majority of people I meet will be able to keep all of their property.
Will creditors still be able to harass me?
No. One of the great benefits of filing bankruptcy is, as of the date your bankruptcy is filed, all of
your creditors are prohibited from calling you, writing you letters, or taking any further collection
activity against you. This means your creditors will no longer be able to call you at home or at work
or at all hours of the day and night, they won’t be able to send you nasty collection letters, and they
won’t be able to file a lawsuit against you.
Can I pay some creditors if I want to?
Sometimes, depending on the amount of the debt. However, the question then becomes, “Why do
you want to?” Some clients want to re-pay some creditors for the following reasons: the creditor
may be a family member, the debt may be a small amount, or you may want to continue using the
services of the creditor after you file bankruptcy. If you want to continue paying a creditor (ie, a
credit card) even after you file bankruptcy, please be aware that the creditor will most likely
terminate your privileges after you file bankruptcy. While there may be some legitimate reason to
repay some creditors, in most cases it is not in your best interest to do so.
Does my spouse have to file with me?
No. However, it may be in your spouse’s best interest to do so. I will advise you during your free
initial consultation whether or not it is in your and your spouse’s best interest to exclude your
spouse from your bankruptcy fling. It will be entirely your spouse’s decision as to whether or not he
or she files bankruptcy with you.
Will filing bankruptcy hurt my credit?
This is one of the most frequently asked questions we get and it is a very good question. Our
response to this question is always, “How is your credit now?” If you have good credit and you are
current with your debt obligations, then, yes filing bankruptcy will most likely hurt your credit. But if
you are considering filing bankruptcy, then you are probably in a situation where your credit is
about to go bad anyway. However, if you already have bad credit and are behind on payments to
creditors then I do not believe filing bankruptcy will substantially hurt your credit.
The firm represents clients throughout Upstate New York and the Capital District including Albany County, Columbia County, Green County, Rensselaer County, Saratoga County, Schenectady County, Ulster County, and Surrounding New York Counties. |
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