BANKRUPTCY
FREQUENTLY ASKED QUESTIONS

1. Can I keep my car(s)?

You can keep your car if:  1) there is no equity in the car or 2) you still owe money on the car and you continue to make payments and “reaffirm” the debt. If you still owe money on the car but do not want to keep it, you can include the car loan in your bankruptcy and return the car to the lender.

2. Can I save my house from foreclosure?

Yes, if you file a Chapter 13 and make up your late payments over a period of three to five years. Once you are caught up, you can begin your regular mortgage payment.

3. How much does it cost?

The Federal Courts sets the cost for filing bankruptcy applications with the court, which are called “filing fees”, and which do not vary. The actual Filing Fee for a Chapter 7 case is $299. In addition, there will be attorney fees, which vary on a case-by case basis depending on the complexity of the circumstances and other issues. In addition, there is a fee for credit counseling and a credit report.

The actual Filing Fee for a Chapter 13 is $274 as well as attorney fees, which again vary on a case-by case basis depending on the complexity of the circumstances and other issues. In addition there is a fee for credit counseling and a credit report. Whether you file a Chapter 7 or a Chapter 13, your attorney will be able to tell you what the total cost of filing will be when you meet with him for the first time. The initial consultation is offered at no charge.

4. Will bankruptcy stop wage garnishments?

With the exception of alimony or child support, creditors cannot garnish your wages once you file bankruptcy.

5. Why can’t I file Bankruptcy in the county I live in?

Bankruptcy is under the federal court’s jurisdiction and is filed in the district court for the county you live in. Debtors that live in the following counties file in the Southern District, Eastern Division in Columbus: Athens, Belmont, Coshocton, Delaware, Fairfield, Fayette, Franklin, Gallia, Guernsey, Harrison, Hocking, Jackson, Jefferson, Knox, Licking, Logan, Madison, Meigs, Monroe, Morgan, Morrow, Muskingum, Noble, Perry, Pickaway, Pike Ross, Union and Washington.

Those debtors that live in the following counties file in the Southern District of Ohio, Western Division in Dayton: Butler, Champaign, Clark, Clinton, Darke, Greene, Miami, Montgomery, Preble, Shelby, and Warren County.

If you live in a county not listed, you may have to file in another district.

6. Can I file on credit cards only?

No. When you file bankruptcy, you are required to fully disclose all assets and all debts. This does not necessarily mean that you will lose everything though.

7. Do I have to go to court?

You will likely only have to participate in one or two meetings, which do not take place in a courtroom. The first meeting will include the bankruptcy trustee, any creditors who wish to attend, your attorney, and you. If you file a Chapter 13, there is an additional course you must attend at the Trustee’s office prior to your court hearing.

8. Will bill collectors keep calling me or take any other sort of action after I file my bankruptcy?

Once you have filed bankruptcy, federal law prohibits your creditors from taking any action to collect the debt.

9. If you're married, can only one spouse file for bankruptcy?

When one spouse has a large amount of debt in his/her name only, that may be appropriate. However, if both people are liable for any debt that is going to be discharged, they should file together. If both do not file, payment will be required from the other spouse for the entire amount.

10. Will everyone know that I've filed for bankruptcy?

Although bankruptcy is a public proceeding, the bankruptcy itself is not normally published in the newspaper since there are so many filed on a daily basis. It is very likely that the only ones that will know about your filing are your attorney and your creditors. On the other hand, any law suits filed against you in Common Pleas or Municipal Court may be published in the local paper. All bankruptcies are published in a newspaper called The Daily Reporter which is a publication is for attorneys, judges and other legal staff.

11. Can you get rid of back taxes through bankruptcy?

Not usually, but there are exceptions. If it is going to be possible, all your returns have to be filed and the taxes owed should be at least three years old.

12. What documentation will I need to provide to my attorney?

There are a number of things you will need to bring with you to your appointment... click here for the list