28 BANKRUPTCYQUESTIONS

Bankruptcy has long been considered the black sheep in the debtrelief family. However, about a million Americans file for bankruptcyeach year. Bankruptcy is not a financial death sentence. While credit scores takea hit after bankruptcy, you can rebuild your credit. Here are the legalanswers to the 28 most common bankruptcy misconceptions:

A N SW E R E D

No. 1 What is the secret to knowing if your credit score willgo up after filing bankruptcy?

Just as there is no real secret pill to lose weight, there is no easy wayto know if your credit score will be restored after filing bankruptcy.There can be a dramatic shift in your score after the bankruptcy ifyou had a stronger credit score to start with, usually 650 or greater.If the score is low to start with there will not be as much of anoticeable decrease. It is possible to use some credit reporting tools to get an estimationof what the decrease will be, as well as the estimated 12 month post-bankruptcy score. It is a common myth that your score will stay low for seven to 10years following the bankruptcy filing. This is simply not true. Theseven to 10 year period is how long the actual notation of thebankruptcy filing will stay on your credit report.

In fact, if you are diligent in your efforts to rebuild your credit, it isentirely possible to be back in the 700s within two years after filingfor bankruptcy. You'll have to know your current score, use a credit card wisely byrepaying it in full each month, and stay vigilant about changes inyour score. An experienced bankruptcy attorney can help guide you on how to goabout re-establishing credit post-bankruptcy as well as how tomonitor your credit to make sure that none of the debts included inthe bankruptcy comes back to detrimentally impact your score,which is illegal once the case is filed.

No. 2 How long do you have to wait before you can buy ahouse after bankruptcy?

A bankruptcy will usually be erased completely from your creditscore between seven and 10 years. However, you can still apply for ahome loan with the appropriate steps. Most professionals suggest you wait at least two years beforeapplying for a home loan. This gives appropriate time for your creditto begin to improve with successful payments. During this time, youcan use a credit card carefully. Completely paying it off each monthwill increase your score. There are other factors that may play into buying a house. Mostmortgage companies consider 401(k) and retirement plan assets aspositive factors toward repayment. Obviously, a large down paymentdoes not hurt either. Likewise, it will help if you can show a gooddebt-to-income ratio. With these factors in mind, a person will likely be able to get a strongmortgage deal in 24 months following a bankruptcy.

No. 3 Is the bankruptcy information made public?

Bankruptcy records are technically considered “public record.”However, this does not mean they will be widespread publicknowledge. Bankruptcy courts use a system called PACER (PublicAccess to Court Electronic Records) to provide people with the abilityto look up case and docket information. This public sphere for thecourts ensures that judges act within their proper legal bounds andthe court system remains accountable. Even though bankruptcy proceedings are searchable, someone wouldhave to actively seek out your name to see if you've gone bankrupt.Therefore, the only people seeing this information will be thoseseeking your credit information for loans. That means individualsseeking your information will usually be people you've alreadyapproved to look into your credit.

No. 4 Will I lose my house?

During bankruptcy, your assets are collected in what is called abankruptcy estate. If you file Chapter 7, a trustee has the power tosell your assets and divide the proceeds to your creditors. Your home,however, may fit into what is called a “homestead exemption.” This exemption protects the equity in your home. In Colorado, youcan exempt up to $75,000 of your home ($105,000 if you, yourspouse, or a dependent is disabled or 60+ years old). This means thatif you have $55,000 in equity, you can use the exemption to protectyour entire equity. If you have too much equity in your home, over the homesteadexemption, this does not mean you are going to lose your house. Ifyou did remain in a Chapter 7 bankruptcy there's a chance thetrustee may allow you to pay out the equity in a lump sum. However,the trustee has the authority to sell the property if they chose to. You could also have the option to file a Chapter 13 bankruptcy. Thiswould allow you to “pay back” the equity over the exemption over

Can I double my homestead exemption if I am married and filingjointly? Will this cover my mobile home? What if I am the child or spouse of a deceased homeowner?

30 to 60 months if you do not want to risk your home being sold orcannot otherwise afford a lump sum equity payment to the Chapter 7trustee. Money paid into the Chapter 13 will go toward paying offsome of your other unsecured debt. Questions still remain.

These and other questions will best be answered by a bankruptcyattorney who can ensure you do not lose your home in the process.

No. 5 Will I lose my car?

Like the exemption described above for your home, there is a similarexemption in place for car owners. The most important fact here isthat if you do not own your car, or you are not currently makingpayments, you cannot keep your car - even if it fits in an exemption.If you plan to keep your car, stay up to date on your payments. You also need to find out how much equity is in your car. If you ownyour car with no loan, the equity in your car is its total fair marketvalue. If you have a loan, equity is the total fair market value minusthe amount left on your loan. Finally, if you have leased a vehicle, orfor some other reason have no other ownership rights, you have noequity to defend. If you have no equity, your car cannot be sold, but the lender mayrepossess it. In Colorado, an individual can exempt $7,500 in equity($12,500 if you, your spouse, or a dependent is disabled or 60+ yearsold). If the equity is above the allowed exemption, you can use Ch. 13 to“protect” the car and pay back the equity through the bankruptcy.

No. 6 Will I lose my retirement account?

For the most part, Congress provides an exemption to let you keepyour retirement plans after filing Ch.7 or Ch. 13 bankruptcy.However, this is not always the case. The general rule is that any Employee Retirement Income SecurityAct (ERISA)-approved plans are exempt. This includes individualretirement accounts (IRAs), 403(b)s, and 401(k)s. Usually, the exemption amount is unlimited and protected. In otherwords, the amount in these accounts will not affect how much youmust pay creditors. These general rules do, however, have certainlimitations. The rules limit exemptions for certain IRAs. The current limit is$1,245,475. If you have more than this in your combined IRAaccounts, it is possible any excess funds can be used to pay offcreditors. Retirement accounts paid in to your account as income are notexempt. If the Ch. 7 trustee can take some of your income from apaying retirement account without removing your ability to supportyourself, they will. These limitations can be confusing. Don’t allow yourself to fall into abind and lose your hard earned cash. An attorney can tell you whichof your accounts is potentially in danger, or alternatively whetherbankruptcy makes financial sense given your situation.

No. 7 Will creditors be able to garnish my paycheck after Ifile bankruptcy?

As you may already know, creditors are often able to gain access toyour wages if you discontinue payment. Filing for bankruptcyautomatically stops wage garnishments. Of course, this won’tprevent court-appointed payments, such as child support; however,it may stop creditors from taking your hard-earned salary. This

earned salary. This automatic stay does, however, end if your case isdismissed. This gives the creditor the right to continue garnishingyour wages. What about garnished wages that have already been taken? You may be able to recover wages that were taken by an unsecuredcreditor during the 90 days before you filed for bankruptcy. If thesegarnished wages total more than $600, a Ch. 7 trustee can generallytry to recoup that money to distribute evenly among the rest of yourcreditors. That way, some money is paid to the debt for which youare declaring bankruptcy. This does not mean the creditor has the right to come after you againfor those funds. If the trustee chooses not to pursue recovering themoney from the creditor, it will not be able to be recovered. If there is a garnishment after the case is filed, you can seek to havethe money returned to you. This particular action can becomplicated, so it is recommended an attorney guides you throughit.

No. 8 Do people ever recover from bankruptcy?

Bankruptcy is an overwhelming experience. However, it is importantto remember that there is a life afterwards. Bankruptcy is a tool usedto get a person back on his or her feet. It is not meant to destroy;rather, it is to provide an opportunity to rebuild. There are many actions a person can take to rejuvenate their creditafter filing bankruptcy. First, let go of the fact that you had to file for bankruptcy. No one willactively seek this information unless they may give you a loan. Mostof the time, that individual will already have your permission to diginto your credit history. Next, most professionals suggest to make one purchase on a credit 

card each month, then paying off the entire purchase, to help rebuildyour cred. Next, keep a vigilant eye on your credit score to understand what ishappening with its growth. Many free websites allow you to monitoryour score without price or penalty. A bankruptcy can get you back on the road to financial freedom. It isamazing how much stress is alleviated once the decision is made touse the bankruptcy to get out from underneath the burden on debt.

No. 9 How do I know if I should file for bankruptcy?

It is important to meet with a professional attorney to consider all ofyour debt resolution options. Too often, individuals depleteretirement plans and other accounts in an effort to get out of debt,only to find out later these accounts could have been protectedthrough bankruptcy. First, find out if bankruptcy will actually help you. You may be able towork out a payment plan or loan forgiveness with your creditors.These may be a better option for you. Many creditors are willing todo this, as this can benefit them, too. Further, you must ask whetherthe debts you're struggling to pay off can be discharged. Many debtsare considered priority obligations and cannot be discharged by thecourt. It's also important to find out whether you even qualify forbankruptcy. In Chapter 7, a person usually must show their income islow enough to qualify. Those with income under the state mediantypically do, otherwise your disposable income is compared to yourdebts to determine if you can pay for a portion of them. Themaximum amount varies state by state, even city by city. So it isimportant to have a bankruptcy attorney to help you understandyour local rules. In Chapter 13, only individuals can file for bankruptcy. Therefore,

What property do you currently own? Could this property be takenand sold in Chapter 7 bankruptcy, or could you be required to paythe value of the property that does not fit in an exemption inChapter 13 bankruptcy?

Do you have a home that may be foreclosed on?

Do you have a car that may be repossessed? You may have alawsuit pending wherein a creditor may obtain rights to garnishyour wages.

businesses can only use this route if they file as an individual.Typically, you are require to create a plan that compared yourincome to your current debt. This is to see if you have sufficientability to pay them off in due time. You will also have to show thatyou are current on your income taxes. If this all works out, a courtmay allow you to follow through with your payment plan. Even if you qualify, several other important question must beaddressed before you can file. Here are some examples:

You will have to ask if an automatic stay on these garnishmentswould help. In any case, an experienced bankruptcy attorney canhelp you determine if bankruptcy is the right choice.

No. 10 How can I avoid going to jail due to my debts?

Usually, no one is sent to jail from not paying debts. That is a thing ofthe past. However, there are certain things on top of not paying debtthat land people behind bars. The first, and perhaps most common, is when people intentionallyviolate a court order. If the court has ordered the payment of certaindebts or child support, and you disobey this order, you may face jailtime in contempt. However, most judges want to see you have theability to pay your debts, which is difficult when spending time injail. Contempt will usually only put you in jail if you intentionally do

not pay in order to send a message. Perhaps the more obvious way to end up in jail is to stop payingincome taxes. This is one payment that should not be missed. Finally, if you are involved with a debtor investigation, and you donot show up as ordered, you can be thrown in jail to insure yourcooperation. In short, it is very unlikely you will end up in jailregardless of nonpayment if you are diligent in obeying other laws.

No. 11 How long does a bankruptcy take?

Like most court proceedings, bankruptcy can tend to take some time.However, depending on which type of bankruptcy you file, theduration will be very different. Therefore, it is important to knowahead of time whether you can survive a process that may take up tofive years, or if you need something to be done in a few months. In Chapter 7 bankruptcy, a typical time-frame is 90 to 120 days fromthe filing to when your debts are discharged. In Chapter 13 bankruptcy, the process takes anywhere from three tofive years. It depends on your income and how much the monthlypayments amount to. In this time, your attorney helps you draft apetition to the court. Next, you meet with a bankruptcy trustee to discuss a payment planthat pays off your creditors in three to five years. The remaining timeis spent paying the monthly payments until the creditors no longerhave a hold on you. Therefore, Chapter 13 provides debt relief thatmay be more attractive to future lenders. Many people assume that they cannot get financial recovery untilthey get their discharge. Just because a Ch. 13 bankruptcy takes threeto five years to obtain a discharge does not mean you will have badcredit for the full time. It also doesn't mean you will be unable to getfinanced for a car or other loan.

No. 12 Do famous, successful people ever file for bankruptcy?

The answer is, yes! Henry Ford. America’s businessman wasn’t always financially savvy.His first attempt at manufacturing vehicles resulted in the need tofile bankruptcy. Next, his second endeavor, the Henry Ford Companyresulted in bankruptcy because too few cars were produced. Even so,this company ended up successfully recovering and changing itsname to Cadillac Automotive. Burt Reynolds. Although very successful in the mid-90s, this iconicactor was forced into bankruptcy after losing control of hispurchases. He quickly emerged from bankruptcy in 1998. Walt Disney. His first attempt at Disney studios was not quite assuccessful as it is now. However, 1928 brought the creation of MickeyMouse and a save from the first bankruptcy. Terrell Owens. After making $80 million in 15 years of playing forthe NFL, TO found himself in financial trouble after advisors led himto too many risky ventures. TO filed bankruptcy in 2012. Milton Hershey. It took two failed attempts in the sweets industrybefore Milton Hershey turned around and perfected the Hershey’srecipe. Stephen Baldwin. This actor filed for bankruptcy in 2009 afterdefaulting on over $800,000 in mortgage debts. This did not stophim from successfully appearing in several movies since. Willie Nelson. Even the country singer found himself in dire straitswhen the government seized his records in 1997. Willie had to payback over $16 million, but he jumped back with a commercial actinggig and a new album. Mike Tyson. The boxer and actor made $300 million, but after some 

new cars and a divorce, he filed bankruptcy in 2003. Tyson continuesto act in order to better his financial situation. MC Hammer. The singer bought a $1 million mansion in the 90safter “Can’t Touch This” took off. In 1996, however, he filedbankruptcy after he couldn’t stop the spending. However, he cameback as a pastor and lives on a ranch in California.

No. 13 Will I ever get credit again?

Bankruptcy should be viewed as a tool. It is not a sentence. Althoughit does have several side effects, if used properly it can help you getback on your feet in just a few short years. Bankruptcy will negatively impact your credit score, it can bounceback into the 700s just two years after filing. You will actually beginto receive lots of offers for credit cards and car loans once thebankruptcy is filed. If you manage your credit responsibly, bankruptcy will leave you in abetter position than when you started.

No. 14 Will debt settlement cost more money and make lifemore miserable?

Often you will see ads for an alternative to bankruptcy called debtsettlement. It may seem very favorable at face value. You simply paythe debt settlement company, and they pay your creditors. However,choosing this option without understanding its implications is not awise idea. There are both credit score and tax implications to debtsettlement. First off, you should understand the way a debt settlement companyoperates. The company will usually have you make monthlyinstallments to them at a reduced payment. They will advise you tostop paying your creditors, but they will not start paying thecreditors until your account with them reaches a certain amount.

Therefore, your debts with your creditors are left unpaid. This willquickly impact your credit. Depending on the length of this delayedpay period, you may find that your credit score takes a significanthit. You must also understand that no company can guarantee all of yourcreditors will agree to a reduced amount to settle the debt obligation.Creditors can sue you for a debt that is not included in theagreement, and they can garnish your wages and bank accounts. Next, the tax implications must also be understood. The IRSconsiders forgiven debts as income. That means you will have to payincome tax on the forgiven amount. Creditors will send you a Form 1099-C, which reports your canceleddebts with the IRS. Even if you don't receive this form, you mustinclude the information in your tax return. In the end, you may find yourself with a lower credit score and owethe IRS.

No. 15 Can I get rid of my tax debt?

the taxes must be income taxesthe tax year must be over 3 years oldthe tax returns must have been filed two years before the filing ofthe bankruptcythere must have been no assessments in the last 240 days

Most tax debt cannot be discharged in bankruptcy. Chapter 13bankruptcy will require you to finish paying the amount in a newpayment plan. Chapter 7 will leave you with the same amount due inthe end. Even so, if you can satisfy several elements you may be ableto discharge your tax debt:

If you can satify these elements, the court may discharge these debts

for either type of bankruptcy. In Chapter 13, however, you may stillbe required to pay these taxes if they are considered a priority debt.An experienced attorney can be there to help you know whether yourtax debt would qualify.

No. 16 Does bankruptcy help with student loan relief?

an inability to maintain a “minimal standard of living” for selfand dependentsevidence that this condition will remain for the duration of therepayment periodgood-faith efforts were made to repay the loan.

It is very difficult to discharge student loans. However, if a personcan show that not discharging their loans would cause “unduehardship” they may be able to reach this goal. What is unduehardship? How bad does your situation have to be? Most courts usethree elements for determining undue hardship:

What evidence do you need to prove these elements? How manysuccessful payments will a court consider a “good faith effort?”What will the court feel is a minimal standard of living? Your attorney will know best whether your student debt stands achance.

No. 17 Can I get rid of my divorce debt?

Divorce is difficult enough without adding bankruptcy to the mix.However, timing can be an important factor in this decision. Manymay file divorce without considering the implications of not filingbankruptcy first. Filing jointly for bankruptcy may allow you to double yourexemption amounts. It also may save you money on filing fees as youonly have to file once. So the first decision to make is whether to filebankruptcy before or after the divorce.

The second question is whether the debt you want to discharge is a“domestic support obligation.” The law does not allow you todischarge a debt that can fit into this category. These debts areusually maintenance (alimony) and child support requirements. Ifyou are considering whether you can avoid this debt, bankruptcy willnot discharge your responsibilities. Next, even if your debt is not a domestic support obligation, you maystill not be able to discharge it if it is to a spouse, former spouse orchild. If the debt is incurred in the course of a divorce or separation(i.e., a property division) you will likely not be able to discharge thedebt. However, this exception to discharge does not apply in Chapter 13bankruptcy. Therefore, Chapter 13 bankruptcy may be the onlyoption to discharge such a debt. You will want to discuss these concerns with an attorney who canhelp you determine whether and how your divorce debts can berelieved.

No. 18 Can I get rid of my business debt?

It is important to note here that Chapter 7 bankruptcy dischargespersonal liability. Thus, it is possible that creditors will still be ableto come after your LLC or corporation regardless of the answer tothis question. However, many debts incurred in the course ofrunning a business can be discharged. This includes supplier debts,credit card bills and personal loans. Even so, if you have secured debts providing your property ascollateral, these debts will not be discharged regardless ofbankruptcy. A person can file for business bankruptcy under Chapter7; however, this requires an attorney to file for you. If you are concerned about losing your business, it may be smarter tofile Chapter 13 bankruptcy. Under Ch. 13, a repayment plan, rather 

than a liquidation, may allow you to handle some of your larger taxdebts and other liabilities without losing your company. In any case, an attorney is necessary here to ensure you end up in aposition with your business to be able to come back after the creditstorm subsides.

No. 19 Can I prevent a foreclosure?

An automatic stay is put in place immediately after you file Chapter 7or 13 bankruptcy. This action postpones a sale of your home at thenext auction. The delay is enforced by law and can last up to fourmonths. However, it can be shortened if a motion is filed to lift thestay. If your state requires advanced notice for a bankruptcy, theautomatic stay will not discontinue the elapsed time. Therefore, ifyou have notice of foreclosure, you cannot simply wait out the timeand file bankruptcy just before auction. The court will simply lift thestay and allow the auction to continue. Once again, Chapter 13 bankruptcy may be the safest option here.Chapter 13 gives you an opportunity to pay off those late paymentsyou could not cover. You will propose a plan to pay them off in alengthened period of time, and, if you follow the plan, your homewill remain safely in your possession.

No. 20 Can I slow down the foreclosure process to work on ashort sale?

A short sale may act to mitigate your liability to your creditor on amortgage. A short sale occurs when you sell your home for less thanthe balance of debts secured by liens against your property. Typicallya lender will not immediately begin the foreclosure process after amissed payment. This means you may have about three to fourmissed payments to decide if you want to engage in a short salebefore bankruptcy is ever a consideration.

If you have not been given enough time here, bankruptcy will likelyonly serve to stall the foreclosure process until your mortgagecreditor can lift the stay and auction off your home. Therefore, it is risky to depend on bankruptcy to buy you time, but itmay help. It is crucial that you discuss these options with an attorneybefore making a decision that could end with you losing your home.

No. 21 How will filing bankruptcy affect my spouse orsignificant other?

This question may require a different answer depending on whereyou live. There are common law states, and there are communityproperty states. Most states are considered common law states,including Colorado. In common law states, if your name is on a deed, you own thatproperty. If you and your spouse both share a name on the deed ortitle, you own a half interest in the property. If there is no title, youown it if you can prove you paid for it. In community property states, both spouses own an equal share ofmost property acquired during the marriage regardless of whosename is on what deed. In bankruptcy, several problems may arise in common law states.First, if property with joint ownership cannot be easily divided, itmay be sold and half of the proceeds applied to your debts. Of course,the trustee must show that the benefit of selling this property wouldoutweigh the detriment to your spouse. Second, although your debtsmay be discharged, this does not affect how much your spouse isnow responsible for. Thus, he or she may be required to pay off any joint debts nowwithout the help of your combined salary.

No. 22 Will filing bankruptcy make the creditors stop callingand harassing me?

The automatic stay following a bankruptcy is a protective device todiscontinue all actions from your creditors attempting to collect adebt. Phone calls from your creditors should discontinue. What if a creditor doesn’t follow this order and calls anyway? Thefirst step is to simply tell the creditor that you have filed bankruptcy.It is possible they are simply unaware that you have begun thisprocess. If the calls persist, the next step is to notify your bankruptcyattorney. An experienced attorney will help you to see that your creditor issanctioned for harassing you against an automatic stay. Thisrequires showing they knew about the order and willfully violated it. If your attorney can prove these elements, your creditor will besanctioned and required to discontinue calls to collect from you. You may be able to collect $1,000 if the creditors continues to harassyou. If you suffered actual damages from the harassment, such as amedical episode, you can ask the court to award punitive damages,which can be quite substantial.

No. 23 Should I run up my credit card debt before filingbankruptcy?

No. Almost all credit card debt can be discharged in a bankruptcy.The only exception is for debt that has been accrued with fraudulentintent. Making credit card purchases just before filing bankruptcy withknowledge you soon will file is fraudulent. If the court discovers this,you cannot have the debt discharged. Most of your creditors haveattorneys who will flag this activity immediately. All they have to dois file a complaint and you will be responsible for the repayment ofthat debt.

Of course, you may try to show that you did not have intent todefraud the creditor. However, if your ledger shows luxury or highprice items, the court will see through those purchases and considerfraud presumed. You may, of course, get lucky and the creditor maynot review your credit purchases. This, however, is highly unlikelyand you should not count on their failure.

No. 24 Can I transfer assets before filing bankruptcy?

When you file for bankruptcy, a trustee is sometimes allowed torecover any transferred property as part of the bankruptcy estate. Ofcourse, like most answers to legal questions, this depends on thecircumstances. When exactly was the transfer made? How were theproceeds spent? Why did you make the transfer? Was the propertyexempt? If your property is exempt, there is really no “bad faith” reason foryou to transfer or sell that property. Exempt property cannot be usedto settle your debts, so you can keep that property after bankruptcy.However, it is important that you get the fair value price for thisproperty. If you did not, it may be obvious you were just trying todump the property to hide it from the trustee. Any planning done before bankruptcy in deciding to sell or transferassets should be done with the consultation of an experiencedattorney.

No. 25 Is filing bankruptcy expensive?

Filing anything in court can be an expensive process. Filing feesalone can make bankruptcy an unattractive option. Chapter 7 filingfees total $335 and Chapter 13 costs $310. These payments can bemade in installments with permission from the court. In rarecircumstances, the court may even waive the fee entirely for indigentindividuals. This means you must make less than 150 percent of thepoverty line, and you must be unable to make the necessaryinstallments.

You will also be required to receive credit counseling within sixmonths. This can cost around $50 per class, but there are places thatare less expensive. You will also have attorney fees if you choose to hire one. The cost ofan attorney depends on your specific circumstances and whatChapter of bankruptcy you will file. There are clear advantages to hiring an attorney so you do not end uplosing any of your property or otherwise doing anything topotentially impact your ability for a discharge.

No. 26 What if someone else is also on my debt? Will theyhave to file? Will they be affected if I file alone?

Often you will find that you have a co-signer on many of your loansto ensure a lower interest rate. Bankruptcy can affect theseindividuals. Chapter 7 and 13 bankruptcy either discharges personaldebts or allows longer repayment of personal debts. Therefore, anautomatic stay in Chapter 7 may protect you from those harassingcreditors, but it will not stop them from calling your guarantors. What can you do to protect them? First, you can choose to give up thebenefit of a discharge and accept personal liability. This is calledreaffirming your debts. Second, Chapter 13 bankruptcy may providemore protection. In Chapter 13, the automatic stay will apply to your guarantors aswell as protecting you so long as you continue with your repaymentplan. Of course, as stated above, your creditors may be able to lift theautomatic stay in certain circumstances. It is strongly advised that you seek the advice of a lawyer to ensureyour parents, siblings, or other guarantors are not hurt through yourfiling personal bankruptcy.

No. 27 Will someone come to my house and look through allof my belongings?

Although this is very unlikely, there are circumstances when atrustee may be required to visit your home. Typically this is requiredif you fail to report certain assets or properly provide values to yourproperty. If you are honest, and you properly report your assets, youwill protect yourself from such an intrusion. A trustee will never, of course, show up unannounced. They must seta time with you, but you must also show up as requested. Trusteeswill also not be allowed to take things from your home without yourpermission. Even so, an attorney can be by your side to protect you from theseintrusions. Your attorney will help you to make certain you haveappropriately and accurately reported your assets so no one will needto come to your home.

No. 28 Can bankruptcy help prevent or slow down an evictionfrom an apartment?

The automatic stay described above may be applied to protect youfrom, or at least delay, an eviction. However, if a landlord hasalready received a judgment for possession in an unlawful detainer,you may be too late. Some states may be kind enough to allow you to cure your rentdefault. However, it is likely you will not be able to stop eviction afterjudgment. Of course, if you file bankruptcy before judgment, thecreditor (your landlord) will have to discontinue any efforts to obtainyour payments. This includes eviction and possession proceedings.

NEXT STEPS?If you face an insurmountable debt load, talk with a bankruptcyattorney about your debt relief options. We have helped hundreds offamilies find the right solution for their circumstances.

QUESTIONS ABOUTBANKRUPTCY?

William L. Henry IV, Esq.Founding Attorney

Feel free to drop me a line atbillhenry@robinsonandhenry.com.

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