Do you have questions about bankruptcy, but
not sure where to start? Today I’d like to go through some of the most common questions
we get about bankruptcy and give you the direct, straightforward answers that you need. Hi, I’m Jim Keaveney of Keaveney Legal Group.
We’re a New Jersey and Pennsylvania based law firm that focuses on helping clients facing
bankruptcy. Every day we talk to people who have questions about what bankruptcy is, how
it works, and what impact it can have on their financial future. So, here are a few of the
most common questions we receive: So, what exactly is bankruptcy? Bankruptcy is a federal legal process designed
to help people eliminate their debts or repay them on more affordable terms. It’s a financial
fresh start. It allows you to hit the reset button. What are the different types of bankruptcy? The two most common bankruptcies are a Chapter
7, which is a liquidation, or a Chapter 13 which is a reorganization. Under a Chapter
7, the liquidation, you ask the court to wipe out or discharge the debts you owe. Under
a Chapter 13, which is the reorganization, you file with the bankruptcy court proposing
a plan to repay your creditors. Depending upon your ability to pay, sometimes debts
have to be repaid in full, or partially repaid, or not repaid at all. So how does bankruptcy stop collection activities? When you file a bankruptcy, a court order
called an “automatic stay” goes into effect. The automatic stay prohibits most creditors
from taking any action to collect on the debts you owe and prevents almost all other debt
related legal actions from going forward. Does bankruptcy apply to all kinds of debt? There are some debts that cannot be discharged
in bankruptcy; for example, child support, alimony, criminal penalties, and certain kinds
of tax debts. Also, student loans are usually not dischargeable. How often can I file for bankruptcy? Under a Chapter 7, you can only file after
8 years have passed since your last Chapter 7 discharge. For a Chapter 13, you must generally
wait 6 years. In both cases, if your case is dismissed rather than discharged, you can
often re-file immediately. If I’m married, does my spouse have to file
for bankruptcy, too? Strictly speaking, no. But, if you have any
financial obligations together, like both of your names on a mortgage, then it would
make sense for both spouses to file for bankruptcy or the other spouse may end up owing the entire
debt. These are just a few of the many questions
we answer every day at our practice. We understand that bankruptcy can be very confusing, so
we are happy to help you understand the process. In fact, at Keaveney Legal Group, we have
helped many clients use the bankruptcy process, and other options, to get a fresh start. We
would be happy to discuss the circumstances of your particular situation with you to help
you determine what could be your best course of action. We offer a free, no-obligation
consultation, call us at 1-800-219-0939 or email me at [email protected] I’m
Jim Keaveney; have a wonderful day! Mt. Laurel *
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