Bankruptcy is a legal procedure that provides individuals or businesses (debtors) who cannot pay their creditors the opportunity to either establish a repayment plan over time or to discharge most of their debts entirely.

Most consumers file under Chapter 13, which involves repaying creditors according to a structured plan, or Chapter 7, which discharges debts. The appropriate chapter depends on your specific situation and whether you possess assets that could be used to repay creditors. Because bankruptcy law is complex, it's advisable to consult with a bankruptcy attorney to determine if, when, and which chapter best suits your needs.

You'll need to gather a comprehensive list of your current and past debts, along with a schedule detailing your assets and liabilities. Additionally, you'll need to provide our office with supporting documentation including pay stubs, tax returns, and other relevant financial information.

No. If you co-signed a debt with your former spouse, creditors can pursue you for full payment regardless of what your divorce decree states. While your divorce decree may outline recourse against your ex-spouse for defaulting on assigned obligations, it doesn't prevent creditors from collecting from you.

Yes. When the primary borrower files for bankruptcy, the lender can demand full payment from the co-signer. This is why it's critical to carefully consider your ability and willingness to repay the entire loan before agreeing to co-sign.

No. While dischargeable debts vary slightly by bankruptcy chapter, certain obligations generally cannot be eliminated, including: taxes owed to government agencies (unless specific conditions are met), debts obtained through fraud, alimony and child support obligations, most student loans, debts arising from injuries or deaths caused by intoxicated driving, and debts incurred after filing for bankruptcy.

In the majority of bankruptcy cases, essential assets like your home, vehicle, furniture, and retirement accounts can be protected. However, discussing your assets thoroughly with us is crucial, as strategic planning can determine whether you'll retain or lose specific property.

All debts must be disclosed in your bankruptcy petition and schedules. However, you have the option to maintain certain debts by reaffirming them during the bankruptcy process.

A bankruptcy filing will remain on your credit report for 7 to 10 years, depending on the chapter filed.

No. However, you have the option to submit a brief statement to credit reporting agencies explaining the circumstances that led to your bankruptcy. If any account information is reported incorrectly, you can request corrections to ensure accurate reporting.