FAQ - Bankruptcy  

What is a bankruptcy discharge?

The discharge is the order entered by the bankruptcy court at the end of your case that relieves you of your legal responsibility to pay those debts that are dischargeable. Some debts like student loans, domestic support orders, certain tax liabilities and other types of specific debts are not dischargeable.

Am I able to keep my home, my car and the money in my bank account if I file bankruptcy?

By applying the exemptions permitted in the Bankruptcy Code a debtor is usually able to protect his or her home, car and other personal property from the Bankruptcy Courts and creditors. It is very rare for a debtor to lose his or her property simply because of a bankruptcy filing. However, to make this determination requires a case-by-case analysis of your financial circumtances.

Do I have to include my mortgage in my bankruptcy case if I want to keep my home?

Yes. You are required under law to list all debts including mortgages and car loans. In addition you must list all assets that you own. Because your mortgage is a secured debt, you have to pay your mortgage if you want to keep your house except under very limited circumstances.

Are student loans dischargeable in a bankruptcy?

No. Student loans are not dischargeable except in extremly limited circumstances. This means that your responsibility to pay your student loans is not affected by the bankruptcy discharge.

Do I have to include my spouse’s income even though I am filing bankruptcy individually?

Yes. If you are married and living together, you are required by the Bankruptcy Code to include your spouse’s income. Also considered are any separate expenses your spouse may have. It is necessary to provide the same type of income documentation for the non-filing spouse as for the person seeking to file the bankruptcy.

How long can a bankruptcy filing be included on a credit report?

Generally the fact that you filed a bankruptcy will appear on your credit report for ten years from the date your case is filed with the court.