If you are considering filing for bankruptcy, it is critical to understand the ramifications. Although bankruptcy can be a smart financial strategy for individuals or businesses facing insurmountable debt, there are consequences to filing. To discuss the effects bankruptcy will have on your situation, turn to the Law Offices of Frank E. Turney, P.A. in Catonsville, MD. Their leading bankruptcy attorney answers frequently asked questions on the subject.

Bankruptcy Law FAQs

Can a Judge Deny My Petition?

The judge might dismiss your petition for Chapter 7 bankruptcy, which could discharge most of your debts, if you have enough income to reorganize and repay your debts under Chapter 13 bankruptcy. You must pass a means test to qualify for a Chapter 7 bankruptcy filing.

Do I Have to Notify My Creditors Once I Have Filed?

After you file for bankruptcy, the court will mail a notice to all creditors you include on your petition. This will immediately enact an automatic stay and stop calls, emails, and letters from debt collectors.

Can Declaring Bankruptcy Stop the Foreclosure Process?

Filing for bankruptcy will immediately halt foreclosure proceedings on your home. Depending on your circumstances, you might be able to stop it permanently and maintain possession of your house after your bankruptcy case is resolved. However, the stoppage of the foreclosure process is only temporary in many cases.

Should I File for Chapter 7 or Chapter 13 Bankruptcy?

If you have little or no income, your attorney might recommend Chapter 7 bankruptcy. If you simply want to devise a more manageable payment plan, you should opt for Chapter 13 bankruptcy. A lawyer will help you determine which approach is right for you.  

If you need a clean financial slate and are considering filing for bankruptcy, the team at the Law Offices of Frank E. Turney, P.A. in Catonsville, MD, can help. Visit the firm’s website to learn more about the assistance they provide and call (410) 788-8830 to schedule a consultation with an attorney. Follow them on Twitter for legal tips and updates.