Frequently Asked Questions about Bankruptcy

Can a husband and wife file jointly under a Chapter 7 bankruptcy?

Yes, they may file a joint case under Chapter 7. Only one set of bankruptcy forms will be needed and only one filing fee charged. Both husband and wife will be required to receive credit counseling before the case is filed and both will have to complete the required financial management course after the case is filed.

When is the best time to file a Chapter 7 case?

That depends on the individual's debts, the nature and status of his nonexempt assets, and what actions are being taken against him by creditors. It is best to file when all anticipated debts have been incurred because only those debts that have been incurred when the case is filed will be considered for discharge. If a creditor is threatening to garnishee your income or assets or if you are facing foreclosure, the case should be filed as soon as possible to take advantage of the automatic stay to protect your income and your property.

What debts can be paid under a Chapter 13 plan?

Any debts you have, secured or unsecured. Even debts that are considered non-dischargeable, like student loans, alimony, or child support, can be paid under a Chapter 13 plan.

Does all of my debt have to be paid under a Chapter 13 plan?

No. Debts for domestic support such as alimony or child support, taxes, and fully secured debts must be paid in full. However, only an amount that the debtor can reasonably afford will be required on most debts. The unpaid balances of most debts that aren't fully paid under Chapter 13 will be discharged when the repayment plan is completed.

How long does a Chapter 13 plan last?

That depends on the debtor's income. The plan can be from 3 to 5 years, depending on annual income.

For further information or legal advice about a bankruptcy, contact the Tampa Bankruptcy Attorney at the firm for a consultation.