BANKRUPTCY FAQs and
DOs & Don'ts
NOTE: the information published here should not be considered personal legal advice. Every case is different and without an attorney who knows the specifics of your situation, a mistake could cost you dearly. Set up a free consultation with ELC if you have any questions about your situation.
Bankruptcy FAQs
What if a creditor has already SUED me and won?
If a creditor or the IRS has won a money judgment against you in court your bank may be required to freeze or surrender funds from your accounts. Once you file for bankruptcy these creditors and your bank are prohibited from doing this. But if this kind of freeze is already in place when you file, it may take your attorney weeks to get you access to these funds. If you have a judgment against you or you owe taxes, you should not keep any money in your personal bank accounts prior to or at the time you file your bankruptcy case.
What are “Relief from Stay” motions and how do they affect my bankruptcy case?
When you file for bankruptcy, your creditors are automatically prevented from continuing any collection actions on your debt. But if you have missed mortgage or car payments on a house or car you still have, your creditors can get permission from the court to foreclose on your house or repossess the car. Your lawyer can help prevent this from happening if we can show the court that you are current on your payments or that you have substantial equity in the property. If you have missed payments on loans secured by your property, let your attorney know.
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Your creditors may also seek permission to take action on a debt if you are in the process of getting a loan modified. If this is the case, let your attorney know.
Bankruptcy Dos and Don'ts
NOTE: none of the information published here should be considered legal advice. Not every case is the same and without an attorney who knows the specifics of your situation, a mistake could cost you dearly. Set up a free consultation with ELC if you want to start the bankruptcy process.
DO notify your attorney of all of your ASSETS.
When your attorney files your bankruptcy petition, you will swear under oath that the petition contains complete and accurate information about your finances, including your assets. These include all real property (your home and other land and buildings) and personal property that you own. Personal property includes tangible items like cars and jewelry, but it also includes intangible property like your right to money from lawsuits (including injuries or claims that have not yet gone to court), worker’s compensation, stocks, and even security deposits held by your landlord.
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One benefit of having ELC represent you is our decades of experience asking the right questions and ensuring that we’ve gotten all the information we need from our clients.
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Read more about how we do client communication right, including our safe and simple digital questionnaire.
DO notify your attorney of all of your DEBTS.
Not only will you swear to the court that the information in your bankruptcy petition is complete and accurate, any debts not included might not be discharged by the bankruptcy. But you still must include non-dischargeable debts like child support and student loans; also include tax debts, loans you have cosigned for, debts you owe to friends and family, and even debts you dispute or for which the amount has not been determined (like ongoing or potential lawsuits against you).
