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Toll Free (888) 266-3290 • (425) 775-9700
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jpatrick@gte.net
 FREQUENTLY ASKED QUESTIONS |
• Will I lose my home, my car, my possessions?
The answer to this question is usually no. Most people who file a Chapter 7 get to keep their home, their car, and all of their possessions. However, if you are financing your home or car, you must make your payments and keep these assets insured. A creditor cannot take these assets as long as you are making your payments on time.
• The other important issue is, what is your car or home worth?
If you have too much equity in these assets and file a Chapter 7, the bankruptcy court will take them. This is why some people file a Chapter 13, since you get to keep everything you own when you file this bankruptcy. The majority of people who file a Chapter 7 bankruptcy do not have too much equity in their car or home, and the court does not take these assets when they file. In addition, most people do not have furniture or other personal possessions that are worth more than what the law allows you to keep when you file bankruptcy (think about what you could sell your stuff for at a garage sale). One of the things we discuss when you come into the office is exactly what you will get to keep if you file a Chapter 7 bankruptcy, which, usually, is everything you have!
• Garnishments, Repossessions, Foreclosures and Other Emergencies
Depending on our office workload, it can normally take from 4 days to 3 weeks to properly prepare and file a bankruptcy petition. As a result, if you need to file sooner to stop a garnishment, foreclosure or repossession, or have some other type of emergency, please let us now when you call. Filing bankruptcy will stop all actions by your creditors, including their attempts to garnish your wages, take your car because you are behind in your payments, or sell your home at a foreclosure. The bankruptcy courts now accept paperwork over the Internet. As a result, we can file a petition to stop such actions within minutes of your coming to see us.
Once a bankruptcy petition is filed, saving your vehicle or home if you are behind in your payments can get complicated. In addition, you may not be able to afford to make your car or mortgage payment, and will have to let these assets go. If you want to keep your car, we work with a lender out of Gig Harbor that re-finances vehicles at fair market value, even while you are in bankruptcy, if you qualify for the new loan. We also work with some mortgage companies that will re-finance your mortgage, again, if you qualify. At times, we can also get a creditor to agree to let you catch up on your past due payments. However, sometimes they only way to save your home or car is to file a Chapter 13. Please call us to discuss all your options.
• Do I have to go to Court?
Not exactly. You go to something called a creditor's meeting, which is run by the Chapter 7 Trustee assigned to your case, or someone from the Chapter 13 Trustee's office if you file this type of bankruptcy. However, creditors usually do not show up at these meetings, but I am there with you.