Bankruptcy Questions and Answers
from Orr and Almond

What is Bankruptcy?

A Bankruptcy is a legal remedy for people who have difficulty paying their debts. Bankruptcy was devised by our government, originally based on ancient and Biblical history, as a way to help people regain a fresh start.

What will Bankruptcy do for me?

Filing a Bankruptcy STOPS all your creditors from trying to collect from you. Bankruptcy may eliminate your legal obligations to pay your debts through a discharge of those debts, and Bankruptcy:
STOPS Harassing phone calls
STOPS Lawsuits
STOPS Foreclosure
STOPS Repossession of your car
STOPS Garnishments
Bankruptcy will allow you to challenge the claim of a debt by those who say you owe them money.

What does Bankruptcy not do?

Bankruptcy will not eliminate a debt for something you want to keep.
Bankruptcy may reduce the amount owed for what you want to keep, or help you arrange payments to better allow you to keep it,
but not allow you to keep something for free. Bankruptcy can eliminate or substantially reduce unsecured debts (personal loans, credit cards, etc...).

Be aware that the Bankruptcy Laws treat some debts, such as child support, student loans, certain taxes, criminal fines, etc..., differently, and should be addressed individually by your attorney to explain how they will effect your individual case.

Is it too late for me to file?

Even if you have already been sued, already received a judgment against you, already been garnished, or already had your property seized by the sheriff, a Bankruptcy may still assist you and out you in a situation to help you help yourself to recover.

Laws change and their applicability to your specific case may call for different action at any point in time.

A Bankruptcy cannot "undo" a Foreclosure, Repossession or similar FINAL action, but your filing in time can prevent this situation by stopping the Foreclosure, Repossession, Garnishment, or similar act by others attempting to do so, and help you reorganize your situation to help you keep what you wish. Bankruptcy may eliminate these issues if filed before they occur.

What kind of Bankruptcy do I need to file, if I file?

For most; relief is offered under Chapter 7 or Chapter 13 of the Bankruptcy Code.

A Chapter 7 is a legal procedure where you ask the Court to erase your debt (called a "Discharge"). There are difficult and complicated restrictions for whether one can file Chapter 7, and might involve the loss of property in some situations. We will help you better understand the possibilities in your case before you file.

A Chapter 13 is a legal procedure where you ask the Court to "reorganize your debts." This may involve the reduction of debt for secured items (such as a car loan), the repayment of past due mortgage payments to prevent a Foreclosure, or the reduction of unsecured debts (such as credit cards). Chapter 13 involves submitting a plan of repayment (which may be pennies on the dollar owed) to be repaid in a 3 to 5 year plan.

We can assist you with the effect of these filings and their possible legal ramifications to you.
We also assist with Chapter 11 corporate, personal, and Chapter 12 Bankruptcies to those who qualify.

How do I know to file, and what I can keep if I file Bankruptcy?

Your attorney should never talk you into filing!

If you consider Bankruptcy, we can assist you to make the important decisions: Can I file? Should I file? When should I file? Do I have other alternatives?

You will be required to provide the necessary information of your current financial situation (ie. Tax returns, pay stubs, etc...) to your Attorney prior to filing and we can evaluate your situation on this information. We can assist you with your desires and the possibilities as best as we can for you.

Will Bankruptcy wipe out my debt?

Yes; to an extent. What the Court Orders as Discharged in your case is "wiped out." The exceptions can be explained better individually.

Will I have to go to Court?

Typically, you will only be required to attend a meeting of creditors. The unusual should always be anticipated by your Attorney, but could be addressed for you by your Attorney if what you did not expect did in fact occur. Our experience tells us to always prepare for the unexpected. Arguments over many issues can be brought before the Judge in your case and decided by the Law.

Will Bankruptcy effect my credit?

Yes! Bankruptcy is typically reported to all the major credit reporting agencies.
Remember, if you are in a situation requiring Bankruptcy, the filing may not make your situation worse. Once you receive your Discharge, you can begin rebuilding your credit. You will be in a situation without those debts you had Discharged, and the same or better income to help you regain credit.

How much does it cost?

This depends. Fees for any Bankruptcy are required to be disclosed to the Court, and your Bankruptcy costs are observed by the Court, and must be approved by the Court. We offer free consultation that allows you to decide for yourself. You can talk to us at no cost and make an informed decision for yourself.

We hope you call: (251) 479-1080

Our attorneys and staff will offer you the specific attention and respect your individual case requires, because you have too much to lose.