The Law Office of David L. Wildman believes that information is indeed power. Here you will find some general answers to some common questions. Please be aware that these are GENERAL answers and as such they are not intended to substitute as legal advice. Your particular circumstances are unique and should be reviewed with an attorney. If you have more questions contact us  or request a FREE consultation. 

Q. What is Bankruptcy?
A. Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidation" or "reorganization."
Under a liquidation bankruptcy (Chapter 7), you ask the bankruptcy court to wipe out (discharge) the debts you owe. Under a reorganization bankruptcy (typically Chapter 13, for consumers), you file a plan with the bankruptcy court proposing how you will repay your creditors. You must repay some debts in full; others may be repaid only partially or not at all, depending on what you can afford.

Q. What is the difference between Chapter 7 and Chapter 13 bankruptcy?
A. In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors.
In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own. Determining which is right for you is a consideration to be discussed with your attorney.

Q. If I filled for bankruptcy will I be able to keep my car, and my home?
A. Yes.  Under chapter 13 you can keep you home, car and other possessions as long as you pay their monthly payments. 

Q. Will my credit score be affected if I file for bankruptcy?
A. Your credit score is already affected if you have past due payments over 90 days old, your car has been reposed, or your home is in foreclosure.  However, when you file for bankruptcy the entry regarding the filing will remain in your records from 7 to 10 years.

Q. How long will it take before I can restore my credit?
A. Once you receive your discharged, which means that you are not obligated to pay the debts that were the subject of the bankruptcy, you can start reestablishing your credit.  And although a bankruptcy will remain in your credit report for 7 to 10 years you can still qualify for car loans, credit cards, mortgage loans.  However, your interest rates will be higher than the ones from people with better credit.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.