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Bankruptcy Frequently Asked Questions

Do you have a question or concern regarding your financial situation? Most people who find themselves in debt have many questions. It is a good idea to seek accurate answers, especially when facing crippling debt and harassing phone calls from creditors. To help you start learning about your options for debt relief, our Modesto bankruptcy attorneys provide this resource of frequently asked questions — and answers — about bankruptcy. If you do not find the answer you are seeking here, then do not hesitate to contact our firm as soon as possible.

What is Chapter 7?
Under United States Code Title 11 Chapter 7, qualified individuals may be eligible to file for liquidation bankruptcy. This type of bankruptcy means that all non-exempt items, such as vacation homes, second vehicles, and multiple bank accounts, will be sold and the money earned will be used to pay off debts. To qualify for this type of bankruptcy, you must take a means test.

What is Chapter 13?
Chapter 13 is another form of bankruptcy. It allows individuals to retain their property while paying off debt according to a court-approved payment plan. This debt relief will still have the advantages of Chapter 7, such as stopping creditor harassment and foreclosure, but with the ability to retain your personal property as well.

Will I lose everything if I file?
If you file under Chapter 7 bankruptcy, your non-exempt assets will be sold to help you get out of debt; however, some personal items you will be able to retain. Your home, vehicle, and single bank account will still remain yours, but vacation homes, second cars, and luxury items such as boats and second bank accounts may be liquidated. You will not be homeless if you file for bankruptcy; you will just have a simpler life.

Will I need to go to court?
When you work with an attorney from our firm, we try our very best to settle as much as possible outside of court, but there may come a time when you will need to testify in front of a bankruptcy court. This may seem daunting, but when you work with our firm, you lawyer will go to court with you and help prepare you for the entire process.

How do I qualify for bankruptcy?
Qualifying for bankruptcy can be as simple as taking a means test or speaking with an attorney. A bankruptcy lawyer from Scott Mitchell Law Offices can help you determine whether bankruptcy is the right option for you and assist you with pursuing debt counseling and other alternatives that may be available to you and your family.

Will my credit be permanently damaged?
No! Although your credit will take a hit initially, you will slowly start to regain your credit after bankruptcy. The bankruptcy will stay on your credit for up to ten years, and it is up to the discretion of the particular crediting company whether they will approve you for a loan or not during that time.

Who will stop the phone calls?
Harassing calls and letters will be stopped the moment you file for bankruptcy. Either the bankruptcy court or your attorney will notify all creditors that you have filed. This should halt all collection efforts immediately. If you still receive collection calls and letters, then it is important that you forward them to your lawyer.

Will I lose my home?
A huge worry for most people when they file for bankruptcy is the idea of losing their home; however, bankruptcy can actually assist you with retaining your property. If you are in foreclosure, or you know that foreclosure is in your immediate future, bankruptcy can stop the process. Although it may be in your best interest to consider down-sizing or selling your property, filing for bankruptcy will not mean that you will lose your home.

Do I need an attorney?
Bankruptcy laws can be difficult to navigate alone, and it is recommended that you speak with an attorney before your file. If you are considering filing for bankruptcy, you should contact Scott Mitchell Law Offices first and discuss any necessary alternatives and under which chapter of bankruptcy would be best for you to file.

When should I file?
Have you already tried negotiation or consolidating your debt to make minimum payments? If every option has been exhausted and you are now facing foreclosure and collection attempts, then it may be in your best interest to work with an attorney and file for bankruptcy.

I still have questions; where can I go for more help?

Do you have more questions about your financial future? Do not struggle through this time alone! With the help of Scott Mitchell Law Offices, you may be able to obtain the outcome you are seeking. At our firm, we have years of experience in guiding our clients down the right path for their particular situation. With our firm, you can retain legal counsel at prices you can afford. Call today to schedule your free case evaluation and get started working toward financial freedom!

Fees and Payments

Here at Scott Mitchell Law Incorporated, when it comes to fees and payments, we strive to be flexible with clients who are seeking legal representation. We offer payment arrangements, flat fee contracts, and traditional retainer agreements. We understand legal representation is necessary for all, and yet difficult for most to pay the fees all at once. Although we cannot guarantee that everyone will be able to hire us, we do promise to do what we can to make it possible for you to hire one of our attorneys to represent you.