What do I have to do to file bankruptcy?

First, you should consult a bankruptcy lawyer for help. Federal law requires that you attend credit-counseling sessions though an agency approved by the United States Trustee’s office before filing. Next, a petition must be filed, schedules of assets and liabilities, and a statement of financial affairs with the bankruptcy court. Last, you pay the filing fee.

Will I be allowed to file bankruptcy?

It depends. A means test is given as a way to determine your eligibility to apply and ability to make payments.

How do I know which chapter to file?

This can be determined through the means test and/or with the help of a bankruptcy lawyer.

Can I file bankruptcy without a lawyer?

Yes, you can, but it is not recommended.

Can I get credit after bankruptcy?

Yes, but it will be difficult as you will now fall into the “high risk” category and your interest rates will be as well.

Will I have to give up all my assets?

No. The Bankruptcy Code states that a debtor filing for bankruptcy can keep certain assets for a "fresh start" by exempting property from the bankruptcy estate. Exemptions vary from state to state.

Does my spouse have to file bankruptcy with me?

While your spouse does not have to file bankruptcy with you, how joint debts will be handled vary from state to state.

Will bankruptcy stop wage garnishments?

Yes, bankruptcy will stop wage garnishments with the exception of court ordered child support and family support.

Are there debts that I cannot discharge?

Yes. Debts that cannot be discharged include student loans, recent taxes, trust fund taxes, child or family support, criminal fine or restitution, accident claims involving intoxication, debts not scheduled, penalties payable to the government other than tax penalties, debts listed in prior bankruptcy where debtor was denied a discharge, taxes for years where return unfiled or filed for less than 2 years

Can I keep my car? My house?

Yes. If there is no equity in the car, you can keep it. If there is equity in the car (over and above the value of the exemptions available), you can buy any unprotected equity from the Chapter 7 trustee. If there is no equity in the house, you can keep it. If there is equity in the house and it is all-exempt, you can keep the house.