Frequently Asked Questions on Bankruptcy 
◊ What is Bankruptcy? ◊
Bankruptcy is a court process helping consumers and businesses eliminate or reorganize debts under protection of the bankruptcy court. A Chapter 7 bankruptcy is commonly referred to as a liquidation, while a Chapter 13 is commonly described as a reorganization.
In a Chapter 7 liquidation, you ask the court to discharge debts you owe (not all debts are eligible). In a Chapter 13 bankruptcy, you file a plan with the court proposing how you will pay off your debts. Some must be paid in full; others will be partially repaid; some will not be repaid, depending on what you're able to afford.
◊ Do I Lose My Home and Car in Bankruptcy? ◊
No. However, there are circumstances in which some people are better off filing a Chapter 7 liquidation bankruptcy and getting rid of a house on which the loan terms are onerous and the value of the house is less than what is owed on the mortgage.
Chapter 13 offers homeowners the opportunity to prevent foreclosure on their homes. By filing under Chapter 13, you can put the past due mortgage payments into your bankruptcy plan and catch up on delinquent payments over time.
◊ Can I Keep Operating My Business? ◊
Yes. In bankruptcy, the debtor proposes a reorganization plan to keep the business alive and pay creditors over time.
◊ Do I Have to Pay Back All of My Debt? ◊
No. The point of bankruptcy is to help you discharge debt and restart your financial life.
◊ How Long Will it Be Before I Have a Good Credit Rating After Filing Bankruptcy? ◊
For personal credit, including credit cards and car loans, it's typically a matter of months. Creditors know you can't file for bankruptcy again for eight years and that you now have no other debts. They understand you are now more likely to pay them back if they extend a new loan or credit offer.
Contact Us For More Information
For more information, contact us by e-mail or call 707-623-1175 to schedule a free consultation with an experienced bankruptcy attorney. We are open Monday through Friday from 8 a.m. to 5 p.m. Evening and weekend hours to meet with an experienced bankruptcy lawyer are available by appointment. Se habla español.
Law Offices of Brian Barta
131-A Stony Circle, Ste 500
Santa Rosa, CA 95401
Toll Free: 888-350-9821
Telephone: 707-623-1175
Fax: 707-577-7414
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