Frequently asked questions
I want to keep some credit cards. Why do I have to list them?
If there is a balance greater than $0 on the card, you must list it. Chances are the creditor will cancel the card even if there is a $0 balance on the card. You will have to adjust to having no credit cards. Fortunately, debit/check cards have eliminated many of the diff erences between having a checking account and a credit card.
Why is a creditor listed in the bankruptcy? I am keeping that item.
Many layman wrongfully think that the bankrupcy is for the creditors; it is for YOU, the debtor. YOU filed bankruptcy and therefore ALL of your debts (regardless of your intentions) MUST be listed. In the bankruptcy, you will then inform the court of your intentions.
What is a reaffirmation agreement?
An agreement, typically on a car, that you sign with the creditor that allows you to keep a secured asset with the promise that you will repay the debt even aft er the bankruptcy is discharged and closed. If you break this agreement, then you can be sued as though the bankruptcy had not occurred. You are NOT required to sign a reaffi rmation agreement but you may have to give the secured asset back to the creditor. Reaffirmation Agreements are ONLY signed in a Chapter 7 bankruptcy.
What is a motion to lift stay?
A creditor files this so that it can repossess or foreclose a secured asset. If you have agreed in a bankruptcy to keep paying for an asset, a creditor will not fi le this UNLESS you are behind on the payments.
I received an unfavorable recommendation. Does this mean my case is over or not approved?
No; this is merely a report of additional documents, amendments, or changes the trustee wants to see in the case. It is NOT a dismissal.
I received a notice for a 2004 examination. What does that mean?
Rare but typically filed in a Chapter 7 case in order to force you to provide documents to the Chapter 7 trustee. Please provide those documents as soon as possible and you 2004 examination will be cancelled.
I received a Motion to Dismiss because the trustee did not have all my documents at the §341 hearing. What now?
Your case will be AUTOMATICALLY rescheduled but it is important to provide all documents to the trustee.
Do I have a grace period in my payments to the trustee?
Typically 30 days, but as a good habit, you should get used to making this payment on time. Bankruptcy is your fresh start and it is a good idea to get the payments to the trustee on time; technically, the trustee does have the right to file a motion to dismiss your case if you are even a day late with your payment.
My payments to the trustee are too high. Why?
What is too high is definitional. Some people do not budget properly. However, if it is too high because your income has dropped, then your attorney might be able to amend your case to get a lower payment. However, if your payment is high because you have substantial assets, income drops or not, your payment will likely stay the same.
I have too many assets for Chapter 7. Therefore, I will just put the car in a family member's name. Is that OK?
No, it is not OK; in fact, it is foolish and appears fraudulent. It is easier to deal with a bankruptcy and your having a car in your name rather than having to deal with a transfer to a family member.
I repaid loans to some family members – I should not be penalized because I owed it.
But you also owed MasterCard, VISA and the IRS. You cannot show preference to one creditor merely because that creditor is a family member. Th e trustee will ask you to pay an equal amount of money to her, or she could sue your family member for return of the money.
I am getting a tax refund after I filed for bankruptcy. Can the trustee take that?
Yes. Don't spend it. The earned income credit portion is always exempt from the trustee, however. Your attorney will let you know when and if you must give some of your tax refund to the trustee.
I owe child support. Is this important?
Yes and you need to complete two Domestic Support Obligation (DSO) forms available here.
I can just lie in order that I won't have to pay anything back.
Yes, you can lie, but you could receive up to five years in federal prison time and a $250,000 fine. This is a viable option if you want special friends.
The IRS claims I didn't file all the required tax returns. Does this matter?
Yes, please call the IRS and clarify this. How much does bankruptcy cost? It depends on the case; our fees are very reasonable.
I filed Chapter 13. Can I change my mind now and file Chapter 7?
It is possible to convert cases between Chapters 7 and 13, which is cheaper than filing a new case.
Where is my case number?
It is on every single document you receive from the court. Typically, it is in this format: 9:10-bk- 99999-ALP.
Can I access by Chapter 13 case online to see if the trustee has received my payments?
Yes. Logon to http://www.Tampa13.com. Go to case information, then choose your trustee. Login with your case number (format: 09-01234) and the last 4 digits of your social security number as your password.
How many hearings do I have to attend?
Typically one. The §341 Meeting of the Creditors.
I have two mortgages on my homestead real estate. Can I keep the real estate and get rid of the second mortgage?
Yes, it is possible, typically if the amount of the first mortgage exceeds the value of the homestead real estate. A professional appraisal may be necessary to prove this. You will need to talk to us regarding this.
Why am I getting foreclosure documents? I filed for bankruptcy.
Bankruptcy concerns discharging debt obligations. It is NOT about returning real estate or other collateral to the creditor. PLEASE UNDERSTAND THIS DISTINCTION!
I received a foreclosure documents saying something about an affidavit of attorney fees. I filed for bankruptcy. Do I have to pay these attorney fees?
No, the bank's attorneys are simply filing the affi davit so that they justify what they charged the mortgage company. You receive a courtesy copy of this.
My credit report has problems. It does not list everything being included in the bankruptcy.
The creditor bureaus are PRIVATE corporations not under the control of the bankruptcy court or the U.S. government. There is nothing I can do to make them have correct information. Please call the bureaus to update your information.
What's the status of my case?
This question, while understandable from a debtor's point of view, cannot be answered. There are processes and procedures in a bankruptcy. Unlike a murder trial, there typically is no winning or losing part of the case. Bankruptcy involves some meetings, hearings and payments. Most of the time, the debtors need to stay in contact with their attorney if something changes but there is no official "status" of a case.
Can I add creditors after my case has been filed?
Yes, but an amendment must be filed and there is a fee to file an amendment. It is best to have all the creditors ready at the time of the original filing.
My credit union is closing my account. Why?
Generally, the credit union will close your bank account if you default on any obligation to it (example: not paying a credit union credit card).
My bank froze my account. Why?
This is extremely rare. If there is a large amount of funds in the bank account, banks technically have the right to freeze the account. Wells Fargo does this and because it now owns Wachovia Bank, Wachovia Bank does this as well. Switch to another bank account prior to filing your bankruptcy to prevent this.
What is an adversarial action?
This is a action whereby a creditor challenges the discharge of its debt. Typically, this occurs when a debtor has charged a large amount of his creditor card shortly before filing for bankruptcy or has taken large cash advances shortly before bankruptcy.
Am I required to attend the Section 341 meeting of the creditors?
Yes.
How many creditors will be at the Section 341 meeting of the creditors?
Typically none. If a creditor does show up, the creditor has the right to ask you some basic questions regarding your debt.
Can bankruptcy discharge any and all debts?
No, certain debts such as student loans, domestic support obligations and intentional torts (harm to others) cannot be discharged.