Frequently Asked Questions

Generally, the main difference for understanding Chapter 7 vs Chapter 13 bankruptcy is how debt will be handled.  In brief, Chapter 7 bankruptcy wipes out debt, while Chapter 13 bankruptcy reorganizes debt.

The Chapter 7 process is very similar to that of a Chapter 13 bankruptcy. Initially, a bankruptcy petition is filed in the United States Bankruptcy Court. The Bankruptcy Laws in California are based on the United States Bankruptcy Code.

To begin with, a bankruptcy petition is filed in every type of bankruptcy case.  Much of the required documentation is identical in any bankruptcy filing. Also a 341a meeting of creditors is required in each bankruptcy case.

Property is protected the same way, regardless of the type of bankruptcy. Indeed, statutory exemptions are applied to assets. In turn the assets are protected by the exemptions. Overall, people can protect their houses, cars, wages, bank accounts, retirement accounts, investments, websites, pets and other household items.

Likewise, both types of bankruptcy stop creditors. Meaning, as soon as a bankruptcy case is filed, creditors are prevented from harassing, collecting or enforcing judgments.

However, in a Chapter 7 bankruptcy you are no longer paying your creditors. Whereas the Chapter 13 plan requires payments to your creditors.

Try not to get overwhelmed with all of this information.  Our dedicated and experienced San Diego Bankruptcy Attorneys offer a free consultation.  We will walk you through Chapter 7 vs Chapter 13 Bankruptcy and the benefits and alternatives to each.  Contact us now!

Chapter 7 Liquidation

Although referred to as a Chapter 7 Bankruptcy liquidation, the goal is simply to get rid of debt while retaining all assets. In fact, the majority of bankruptcy cases filed are no asset chapter 7 bankruptcy cases.  To put it another way, the law affords most Chapter 7 bankruptcy filers to walk away from their debt without losing any property.

For the most part, Chapter 7 bankruptcy filings are the result of a life-changing event. For example, losing a job, unforeseen illness, or the death of a spouse which in turn makes it impossible to pay off or even pay these debts.  With this in mind, Chapter 7 bankruptcy is a solution for those who need immediate relief from debt.

Examples of debt include credit card bills, medical bills, personal loans, auto repossession deficiencies, some back taxes and other unsecured debts.

In a Chapter 7 Bankruptcy, the filer is allowed to protect assets and other things owned. Importantly you can keep your house in chapter 7. To emphasize, using California exemptions, up to $600,000 of equity can be protected.

Chapter 13 Information

On the other hand, a Chapter 13 Bankruptcy case restructures debt. This type of bankruptcy is more suitable for those who are receiving monthly income. That is due to the requirement for a payment each month to a Chapter 13 Bankruptcy Trustee.

A plan of reorganization must be filed in every Chapter 13 Bankruptcy.  Accordingly, the purpose of the plan is to propose a Chapter 13 bankruptcy payment.  Among the details in the plan is who will be paid, how often and what amount.  Which creditors will be paid and how much varies significantly depending on income, assets, past due mortgage and vehicle payments and more.  A "once size fits all" Chapter 13 payment does not exist.  This is because there are so many variables that make up a plan payment.  For this reason it is extremely important to contact a San Diego Bankruptcy Attorney with experience handling Chapter 13 cases.

There are many benefits of Chapter 13 including keeping all property even if it exceeds exemption amounts.  One of the biggest advantages  is the ability to include missed payments on real property and vehicles.  There is no provision to catch up on past due secured payments in a Chapter 7 case whereas Chapter 13 provides this type of debt restructuring.  Generally the balance of these past due payments must be paid in full during the course of the Chapter 13 Plan.  This is accomplished through fixed monthly payments.

Chapter 13 plan payments are paid over three or five years. For example, if you are above median income your payments will be made over five years whereas if you are below median income, your plan will be three years.  A bankruptcy judge must sign off on a Chapter 13 plan before it is confirmed or finalized.

For more answers, contact the Bankruptcy Law Offices of Mark L. Miller to discuss your questions and best option for your financial situation.

You are here for a reason.  Maybe you were thinking about filing Bankruptcy for a long time or you are just starting to research your options.  There is a lot of information on the internet, some good and a lot of bad.  The first step is determining if bankruptcy is right for you.

There are several reasons people and businesses file bankruptcy.  Below are some of the common reasons people file Bankruptcy.  However, there are lots of reasons someone to file.  And Bankruptcy is a good thing because it helps you get out of debt.    If you answer yes to one or more of the reasons listed below, you should contact an experienced bankruptcy attorney at the Bankruptcy Law Offices of Mark L. Miller.

• Your wages are about to be or are being garnished.
• You are being sued.
• Facing vehicle repossession.
• Home foreclosure or pre-foreclosure.
• Your bank account is or threats it will be levied.
• You are in the process of, already did or plan to divorce your spouse or your spouse will be divorcing you.
• Your income stopped or decreased.
• Need to lower your monthly bills to keep up your student loan payments.
• You incurred a lot of medical bills.
• Your business closed down or business income significantly decreased.
• You are living paycheck to paycheck.
• Debt consolidation did not work.
• Want to rebuild your credit.
• Owe back income taxes.
• Need a fresh start.
• Need to reorganize your debt into one fixed monthly payment.
• Need some peace of mind!
• You just can’t seem to get ahead financially.

For more answers, please review our other Frequently Asked Questions.

Over 99% of our clients get to keep everything when filing bankruptcy. Most of our clients keep everything they own and lose absolutely nothing but their DEBT!
The United States Bankruptcy Code was drafted to protect consumers who file Bankruptcy. The goal really is to protect you from losing all of their property, assets and belongings. In a Bankruptcy case you are provided "exemptions" to protect your property. Think of exemptions as “Built-In-Protections” for your property. Exemptions are specific sections of state and federal law that allow you to keep your property and wipe out your debt by filing bankruptcy.

In a typical Chapter 7 Bankruptcy case filed through our office, you will lose nothing. In Chapter 13, a reorganization of your debts, you keep all of your assets because your debts are paid off or wiped out when your case is discharged.

As your attorneys, we will assist you and help you choose the proper exemptions (protection) for your real property (house and land) and other personal property (everything from retirement accounts to your fishing equipment!) As your attorneys, we will help you determine whether you are eligible for exemptions under Section 704 or 704 of the California Civil Code, Federal Exemptions under Section 522 of the United States Bankruptcy Code or in some cases, exemptions from another state.

Selecting the appropriate exemptions in your bankruptcy case is critical. You need to speak with experienced bankruptcy attorneys like the Bankruptcy Law Offices of Mark L. Miller who can counsel you on taking California Exemptions under Section 703 or 704 of the civil code, or Federal Exemptions under Section 522 of the United States Bankruptcy Code.

For more answers, please review our other Frequently Asked Questions.

IMMEDIATELY!

This is a VERY special service  that we offer to our clients when they hire us!  The day you sign up with the Bankruptcy Attorneys at the Bankruptcy Law Offices of Mark L. Miller, the law requires your creditors deal with only us.  The creditors cannot call, send letters, email or text you after you retain our office.

We send written notice to each of your creditors notifying them you hired the Bankruptcy Law Offices of Mark L. Miller to represent you and that they are legally forbidden to contact you.

If your creditors refuse to comply with the law and continue contacting you, please keep track of all communications and let us know so we can take additional action.

If a creditor disobeys the Fair Debt Collection Laws (FDCPA) and harasses you prior to filing your Bankruptcy you may have a claim against that creditor in, and after, the Bankruptcy case.  Bankruptcy Law Offices of Mark L. Miller will bring actions against creditors who illegally harass you and break the laws!

For more answers, please review our other Frequently Asked Questions.

Yes.

A wage garnishment can usually only occur after you have been sued and the Creditor has obtained a Judgment against you for the amount you owed the creditor, plus attorney’s fees, interest and legal costs.  The Bankruptcy laws allow us to stop the garnishment and harassment and, in some instances, recover the money which was taken by the creditor.

A wage garnishment must stop as soon as you have a filed bankruptcy case.  Under 11 U.S.C. Section 362, an “automatic stay” goes into effect when a bankruptcy petition is filed.  The automatic stay is a stop sign to the creditors!  Once your case is filed, the bankruptcy automatic stay prevents creditors from collecting from an individual or business who filed bankruptcy.  The filing and Automatic Stay will stop the garnishment even if a court order was already obtained and the garnishment was in place before we filed your Bankruptcy case.

As soon as your Bankruptcy case is filed, the United States Bankruptcy Court sends written notice to all of your creditors. The protection is immediate but, in some cases notice of the filed Bankruptcy case can take a few days to reach your creditors.  However, our office immediately sends written notice by fax, email and in some cases mail, to all creditors and other parties which require notice. The notice informs creditors and other interested parties that the Automatic Stay is in effect and NO action may be taken against the person who filed Bankruptcy. All ongoing wage garnishments are forbidden.  The wage garnishment must stop immediately.

What happens if your wages were already garnished before your bankruptcy was filed?  In some cases, the money may be returned to you if it was not turned over to the Sheriff who initiated the garnishment.  If we pursue garnished funds, the garnished money will not be returned to you until at least 90 days after your 341a meeting of creditors.

If the garnished wages are not returned to you, the Bankruptcy Law Offices of Mark L. Miller may be able to file a motion within your bankruptcy case to recover the money taken from your paycheck.  The motion is called an Adversary Proceeding.  By filing an Adversary Proceeding, we are asking the Bankruptcy Court to order the garnished wages returned to you.  In the adversary proceeding you can recover only the funds garnished during the 90 days before your case was filed AND the amount garnished over the 90 days must total $600.00 or more.  The Adversary Proceeding cannot be filed until you have a bankruptcy case number.

For more answers, please review our other Frequently Asked Questions.

Well,...kind of.  You do not have to go to the Bankruptcy Court, meet with a Judge or sit before a Jury.  However, you will have to attend a 341(a) Meeting of Creditors or “341a” for short.  While this meeting is called your “meeting of the creditors”, NO CREDITORS WILL BE AT YOUR HEARING.

Your 341a meeting is scheduled approximately 30 days after your bankruptcy case is filed.  The Bankruptcy Code requires you to attend the 341a meeting.  Typically, the 341a meetings are held downtown in the Edward J. Schwartz Federal Building.  Currently the 341a meetings are being conducted by phone or Zoom due to Covid-19 restrictions.

A Bankruptcy Trustee (manager) will be appointed to oversee your Bankruptcy case from filing to discharge.  The Trustee’s job is to ensure that all the information you filed is true and correct, that you have listed all your assets and liabilities, you are being honest and that you are eligible to wipe out your debt or can afford to pay them off monthly in a Chapter 13 case.

During your 341a meeting you will be asked questions under oath by a Bankruptcy Trustee.  The Bankruptcy Trustee is appointed by the United States Trustee’s Office to oversee the administration of your bankruptcy case.  Your creditors are allowed to attend the 341a meeting and ask you questions but it is very rare for creditors to appear at these meetings.

For more answers, please review our other Frequently Asked Questions.

A Chapter 7 Bankruptcy stays on your credit report for up to ten years.  A Chapter 13 Bankruptcy remains on your credit report for up to 8 years.  Bankruptcy affects your credit.

Bankruptcy wipes out, or pays off debt over time. The amount of debt you have is approximately 1/5 of your FICO-Credit score.  Generally, a credit score (Experian, Equifax, TransUnion) will drop by approximately 150 points following a Bankruptcy case.

However, you can immediately begin re-establishing your credit after your bankruptcy is filed.  By wiping out your debt, you no longer carry high credit balances and can start fresh.  There are several ways to rebuild your credit after filing bankruptcy including with a car loan and secured or unsecured credit cards.

Prior to filing your Bankruptcy you may have fallen behind on your credit card payments.  Missed payments show up on your credit report for up to 7 years. Most people, prior to the Bankruptcy, have dinged-up credit or many “late” payments on their credit report.  Filing Bankruptcy immediately stops that negative credit reporting and your balances are reduced to zero and noted with “included in bankruptcy”.

For more answers, please review our other Frequently Asked Questions.

Yes.

The filing of a Bankruptcy Case creates a “wall” and it is illegal for someone to repossess your vehicle after you file Bankruptcy unless they get approval of the Bankruptcy Court first. BankruptcySo no, your vehicle cannot be repossessed after your bankruptcy case is filed.

If you are keeping your car, you will need to continue making your normal monthly payments on the vehicle.   It is very important that you stay on track with your normal, monthly car payments.  If you do not want to keep your car, you can return it to your car lender and the bankruptcy case will eliminate any debt owed when you turn in your vehicle.

For more answers, please read our other Frequently Asked Questions.

No.

Either Spouse is allowed to file an individual Bankruptcy case to deal with their own, separate debts.  However, while an individual bankruptcy can be filed for one or the other spouse, the Bankruptcy Court still requires that the assets, liabilities, income and expenses of both spouses in the Bankruptcy Case.  This is because California is a community property state.  Any income, assets, or debts incurred during a marriage are considered “joint” and part of the marital “community”.  However, oftentimes individual spouses have their own debt, a spouse is incarcerated, a divorce is pending or other circumstances make it impossible to file a joint case.  In these instances, the Bankruptcy Law Offices of Mark L. Miller can file and obtain a great result in a Single-Filer case.

It is important to hire a very experienced attorney to handle your case. If one spouse files but not the other, the non-filing spouse may be liable for debt incurred during the marriage.  Creditors of the filing-spouse may be able to seek payment from the income or assets of the community/marriage.

If you and your spouse are co-borrowers on accounts including credit cards, medical debt, personal loans, consolidation loans, etc., it is probably best for both of you to file bankruptcy.  Even if you wipe out your liability for the debt, the creditors could still come after your spouse for those jointly owed debts.  And, even if your spouse is not filing bankruptcy with you, under applicable bankruptcy law we must include your spouse’s income and disclose all of your spouse’s assets in your bankruptcy paperwork.

For more answers, please read our other Frequently Asked Questions.

This may be the Number 1 question we get about filing a Bankruptcy case.  The answer is “YES” you can buy a house after your Bankruptcy!

Depending on your income, credit score and other factors used by lenders offering home loans, you may be able to qualify for a loan as soon as 2 years after your case is discharged, as detailed below:

Chapter 7 Bankruptcy:

Conventional loans:
4 years from the date of discharge.

FHA Loans:
2 years from the date of discharge.

VA Loans:
2 years from the date of discharge.

USDA Loans:
3 years from the date of discharge.

Chapter 13 Bankruptcy:

Conventional loans: 
2 years from discharge, or 4 years from dismissal of of the Chapter 13 case.

FHA loans:
2 years from discharge or 12 months recent timely Chapter 13 plan payments and permission from the Court.

VA loans:
Immediately after discharge or 12 months of on time Chapter 13 plan payments and permission from the Bankruptcy court.

For more answers, please read our other Frequently Asked Questions.

Yes.

Filing a Chapter 13 bankruptcy case immediately stops all foreclosure actions on your home!  The mortgage lender must immediately stop all collection efforts including foreclosure sales.  Through the Chapter 13 plan you will propose to repay your mortgage arrears over a 3-5 year period of time. (the amount you were behind on the house when we filed your case).  Your mortgage company cannot foreclose as long as you remain current with your Chapter 13 plan payments and continue paying your ongoing monthly mortgage payments.

In a Chapter 7 case, if you are not current on your mortgage payments, the Bankruptcy will postpone your home foreclosure for the time period you are in a Bankruptcy case (approximately 4 months).  During a Chapter 7 bankruptcy your mortgage company can file a motion seeking relief from the automatic stay provided under 11 U.S.C. Section 362.

If you fall behind on your mortgage during the Bankruptcy, your lender can ask the Court to lift the protections of the Bankruptcy case (the automatic stay).  If the mortgage company is granted relief from stay, it can start or resume foreclosure proceedings during your Chapter 7 bankruptcy case.  After your Chapter 7 bankruptcy case is discharged, your mortgage lender can proceed with foreclosure unless you work out an agreement or bring your mortgage payments current.  During your Chapter 7 case you can apply for a loan modification to your lender.

If you are unable to bring your mortgage payments current, Chapter 13 is the best option to help you keep your home.

For more answers, please read our other Frequently Asked Questions.

A Chapter 7 Bankruptcy will eliminate most unsecured debts including:

• Credit cards
• Personal loans
• Payday loans
• Medical bills
• Income taxes (subject to the 3 year/2 year/240-day rule)
• Unpaid rent
• Mortgage deficiencies
• Auto repossession deficiencies
• Breach of contract debt

Chapter 13 bankruptcy eliminates the same debt as a Chapter 7 and also allows you to:

• Reorganize your debt
• Catch up with your mortgage payments
• Bring your vehicle payments current

For more answers, please read our other Frequently Asked Questions.

Yes.

You must list all creditors in your bankruptcy case including payday loans, personal loans, credit cards, lines of credit, car and mortgage loans.  If you have a credit account with a zero balance, it does not have to be listed in your bankruptcy because it is not a creditor.  Do not worry about tracking down all of your creditors.  We obtain a copy of each client’s credit report and include that information (including collection companies) in your bankruptcy paperwork called bankruptcy schedules.

We will provide you with a copy of the credit report obtained by our office.  We always recommend you review your credit report and see if any creditor is missing.  You will also review your complete bankruptcy petition with your attorney prior to filing it with the bankruptcy case.  During this review you can add any creditors that were not listed on your credit report, although this is very rare.

For more answers, please read our other Frequently Asked Questions.

Sometimes.

A “lien” is typically an involuntary “claim” which has been filed against your house at the County Recorder’s office.   It may arise from a lawsuit you lost, or some other claim against the equity in your home. If the lien was not incurred to purchase the asset, typically real property including land and houses, was not voluntary, and impairs your ownership interest in property (an exemption), it may be possible to have the lien removed by using lien avoidance techniques.

Examples of involuntary liens include judgments for credit cards, back income taxes, breach of contract disputes, medical bills and personal loans.  If you were sued and the creditor received a judgment from a court, the creditor may have recorded an involuntary lien/claim against your real property.  This is an involuntary lien because you did not agree to have the judgment recorded against your property.

For more answers, please read our other Frequently Asked Questions.

A voluntary lien is created through contract, usually between you and a creditor.  Common voluntary liens are against your real property as a first, second, or junior mortgage, a home equity line of credit (HELOC), SBA loan, etc.  Only wholly unsecured voluntary liens can be discharged in Chapter 13 bankruptcy.

To avoid a voluntary lien in a Chapter 13 bankruptcy your real property must be valued by an independent third-party appraiser.  Your property value must be less than what is owed on your first mortgage or you cannot avoid a voluntary junior lien.  Based on your appraiser’s valuation of your property, your San Diego bankruptcy lawyers at the Bankruptcy Law Offices of Mark L. Miller will file a motion to value real property and treat claim as unsecured and avoid junior lien and request a hearing for the motion.  The motion will then be heard in front of the Bankruptcy Judge assigned to your case.  The Bankruptcy Judge will then issue an Order granting the motion to value your property.

The unsecured junior lien will not be removed from your property until you pay all of your chapter 13 plan payments and receive your discharge order.  This is why it is critical to stay current with your plan payments and finish your Chapter 13 plan.  Equally important is hiring an experienced San Diego Bankruptcy Attorney to explain all of your options and prepare the proper paperwork.

Sometimes Chapter 7 not an option because you earn too much money, have too many assets such as home equity or money in the bank, or you filed a prior Chapter 7 within the 8 year period allowed to file again.  Other reasons to file Chapter 13 include being behind with your mortgage or vehicle payments and need a way to restructure your debt and pay it off over a 3-5 year period to get back on track.

Most people who file Chapter 7 need to pass a calculation of income called the “Means Test”.  The Means Test calculates your gross monthly income and household expenses based on National Standards and Local Standards depending on your household size.  The majority of people pass the Means Test calculation.  If you are unable to pass the means test, Chapter 13 bankruptcy may be a better option for you.  The Means Test is a complex analysis.  The lawyers at the Bankruptcy Law Offices of Mark L. Miller have successfully helped clients pass the Means Test thousands of times.  We enjoy wiping out your debt!!

Chapter 13 bankruptcy allows you to keep your property while still taking advantage of the Federal Bankruptcy laws. That is, you, and all your property are protected during the Chapter 13 case.

If you still have unexempt property after applying all exemptions available in a bankruptcy proceeding, your bankruptcy attorneys will calculate a Chapter 13 plan payment for you.  Your Chapter 13 plan payment will be structured as a 3 or 5 year repayment allowing you to make payments overtime.  The remaining unsecured debt unpaid through your Chapter 13 plan will be discharged when your plan finishes.

If you are behind with your mortgage and/or vehicle payments you can pay the past due amount (get caught up) through a Chapter 13 payment plan.  You can keep your house and/or car and the creditors cannot foreclose on your house or repossess your vehicle as long as you continue paying your Chapter 13 payments and resume your regular contractual payments to your lender(s).  Often your entire vehicle loan can be paid through your Chapter 13 plan and may even lower your monthly car payment, interest and even principal balance owed.

For more answers, please read our other Frequently Asked Questions.

All consumer co-signors are protected under a Chapter 13 case. However, co-signors are still liable and creditors can attempt to collect against them in a Chapter 7 case.

For more answers, please read our other Frequently Asked Questions.

No.

Your employer is not listed as a creditor and will not be sent notice you filed bankruptcy. Additionally, many States are now restricting the use of credit reports in employment situations. Employers may only pull credit reports in very limited circumstances.

The only exception is if your wages are being garnished.  Then your employer will be notified of your bankruptcy filing so we can advise your employer to stop garnishing your income.  In that case we fax, mail and sometimes call your human resources department to give notice you filed bankruptcy and all garnishments must immediately stop.

For more answers, please read our other Frequently Asked Questions.

Your payments to your landlord will be identified in your Statement of Financial Affairs filed with your Bankruptcy petition.  However, your landlord is typically not a creditor and will not be mailed notice.

When you owe money to a current or former landlord because of a current or past eviction, we need to include your current or former landlord as a creditor.  This ensures your current or former landlord receives notice you filed bankruptcy and as a creditor, cannot take any action against you to collect past due rent.

For more answers, please read our other Frequently Asked Questions.

Typically, not.

However, if you owe your bank or credit union money for an unsecured debt such as a credit card, personal loan or overdraft fee(s), you should close your account with that bank or credit union.  Otherwise when your bankruptcy case is filed, the bank or credit union can freeze your bank account and take the money in your account to pay your unsecured debt owed to the bank.  This is true even if you file bankruptcy and your debt is discharged.

You need to close the bank or credit account(s) where you owe money and move your funds to a new bank or credit union where you owe zero debt.

If you have a vehicle or home loan with your bank and you plan to keep the vehicle and/or home after bankruptcy, you can continue your banking relationship.  If you are surrendering your vehicle and/or home in the bankruptcy, you should close your account as noted above.

For more answers, please read our other Frequently Asked Questions.

Yes.

All lawsuits and collection judgments must stop immediately when we file your Chapter 7 or Chapter 13 bankruptcy.

For more answers, please read our other Frequently Asked Questions.

Yes.

In both a Chapter 7 and Chapter 13 bankruptcy case you can cancel unwanted contracts as long as you discontinue the service and/or return the merchandise. Examples of this could include an agreement with an Exercise/Gym facility you no longer wish to attend or a lease/loan on a returned or unwanted Automobile.

For more answers, please read our other Frequently Asked Questions.

When another bankruptcy case can be filed depends on the chapter filed, the filing date and in some cases, how much was repaid if you previously filed a Chapter 13 bankruptcy.

Chapter 7 then Chapter 7:   8 years. 

A Chapter 7 bankruptcy can be filed once every 8 years.  The date is measured from filing, not from discharge.

For example, if you filed a Chapter 7 bankruptcy on January 01, 2012, you are eligible to file Chapter 7 on January 01, 2020.Bankruptcy

Chapter 7 then Chapter 13:  4 years.

4 years after filing Chapter 7, a Chapter 13 case can be filed.  If you wait 4 years to file a Chapter 13 after your Chapter 7, you will be eligible for a discharge of debts in a chapter 13 case.

If you do not wait 4 years to file your Chapter 13 bankruptcy, you are not eligible to discharge your debts in a Chapter 13 bankruptcy.  This means all debt included in the Chapter 13 filed must be paid in full through your Chapter 13 plan or the balance(s) will remain due after completion and any unpaid amount will not be discharged.

Chapter 13 then Chapter 13:  6 years.

If you paid less than 70% of your total unsecured debt in your Chapter 13 case you need to wait 6 years to file a Chapter 7 bankruptcy.  If your Chapter 13 bankruptcy was a 3-year plan and you paid less than 70% of your total debt, you will have to wait another three years from discharge to file another case.  If your Chapter 13 bankruptcy was a 5-year plan, you will have to wait an additional year after discharge to meet the 6-year requirement.

After filing a Chapter 7 bankruptcy case, you can file a chapter 13 4 years later and discharge your debt.

Chapter 13 Bankruptcy lets you file as often as needed, if filed in good faith and 70% of unsecured debts were paid in a previously discharged Chapter 13 bankruptcy.

For more answers, please read our other Frequently Asked Questions.

No.

Child and spousal support (sometimes called alimony) will not be wiped out in a Chapter 7 or Chapter 13 bankruptcy case.  Under 11 U.S.C. Section 523(a)(5), domestic support obligations are non-dischargeable.  This means you will still be responsible for any past due and ongoing child or spousal support payments during and after your bankruptcy.

In a Chapter 13 bankruptcy, past due child and spousal support must be paid in full during your 3- or 5-year plan.  You must remain current with your child and spousal support payments throughout your Chapter 13 bankruptcy.

If you are struggling to pay your child or spousal support the Bankruptcy Law Offices of Mark L. Miller can provide you a family law referral so that you can review your options and possibly lower your payments. Our goal is to provide you with total financial freedom!

For more answers, please read our other Frequently Asked Questions.

In Chapter 7 bankruptcy, some back-income taxes will be wiped out. Income taxes must meet the debt meets the dischargeability requirements:

• The taxes owed must be at least three years old.
• The tax returns for the years owed must have been filed at least two years prior to filing bankruptcy.
• The tax debt must have been assessed at least 240 days prior to filing bankruptcy.
• There are no events that tolled the time periods above (tolling events can include an offer in compromise, incarceration, etc.).

If you owe taxes that do not meet the test above, you can file Chapter 13 Bankruptcy and pay back your taxes over a 3- or 5-year period. This allows you to restructure your tax debt and avoid additional tax penalties over the course of your payment plan. If you owe back property taxes, you can pay those back in a Chapter 13 Bankruptcy case.

Property taxes will not be wiped out in a Chapter 7 Bankruptcy case. If you owe back property taxes, you may need to file a Chapter 13 Bankruptcy case so you can restructure your payments and get current.

For more answers about taxes, please review our Blog on Wiping Out Taxes in Bankruptcy.

In a Chapter 13 Bankruptcy you can pay student loans in your payment plan. In Chapter 7 Bankruptcy, student loans are generally not dischargeable (there are some rare instances where an extreme hardship may render student loans dischargeable).

For more answers, please read our other Frequently Asked Questions.

A typical Chapter 7 Bankruptcy cases lasts between 3 to 4 months from the day the Bankruptcy Attorneys at the Bankruptcy Law Offices of Mark L. Miller file your Chapter 7 Bankruptcy case to the date your case is discharged typically takes between 3 to 4 months.

A chapter 13 bankruptcy plan takes between 3 and 5 years to complete and then will be discharged once you have paid all of your plan payments.

For more answers, please read our other Frequently Asked Questions.

You can get a free copy of your credit report once per year by visiting https://www.annualcreditreport.com/index.action.  Here you can get your Experian, Equifax and TransUnion credit report absolutely FREE!  AnnualCreditReport.com is authorized by Federal Law.

The credit reporting agencies require you to answer some security questions before you can access your credit reports.  If you pass the security questions, you can immediately access your reports.  Otherwise, you can request your report in writing and it will be mailed to you.

Currently AnnualCreditReport.com is offering free weekly online credit reports through April 2021.  That means you can get your credit report each week from Experian, Equifax and TransUnion at no charge.

For more answer, please review additional Frequently Asked Questions.