Frequently Asked Questions     1. How will bankruptcy affect my credit?  2. Will I qualify for Bankruptcy protection?   3. Will a bankruptcy filing stop creditors from suing me and stop their collection calls? 4. Can I file Bankruptcy with my spouse? 5. If I file bankruptcy will I lose my home – will I lose my vehicle? 6. What property will I get to keep? 7. Which debts cannot be eliminated (discharged) in either a Chapter 7 or a Chapter 13 bankruptcy? 8. Can I file bankruptcy if I own a business? 9. In Bankruptcy, what is the difference between a Discharge and Dismissal? 10. If I don’t have a SS number can I file for bankruptcy? 11. How can I get more information?   1. How will bankruptcy affect my credit? Situations occur in life that can cause one’s debts to become out of hand. Lenders realize that people learn from their experiences. Just because someone’s debts were out of control at one time, does not mean their future debts will go unpaid. Issuers of credit (banks and credit card companies) are free to consider your bankruptcy when deciding whether to extend you credit. Bankruptcy filings are generally listed in credit reports for up to ten (10) years. Some companies may extend credit to you right away, usually at higher interest rates, while others may be willing to extend credit to you after a number of years have passed as well as the possibility of obtaining a secured credit card. There may be some businesses that will choose to wait until after the filing of your bankruptcy is no longer on your credit report. Back to Top   2. Will I qualify for Bankruptcy protection? In 2005 Congress passed new laws restructuring bankruptcy options. A means test is now required to determine eligibility of Chapter 7 filings. Generally, if you do not qualify for a Chapter 7 you can file bankruptcy protection under Chapter 13. Back to Top   3. Will a Bankruptcy filing stop creditors from suing me and stop their collection calls? Once your bankruptcy is filed, creditors cannot continue to call, send collection letters, cannot sue, repossess or forclosure. Creditors cannot garnish wages – even if a garnishment order is already in effect. And your utility companies must reconnect your service. Back to Top   4. Can I file bankruptcy with my spouse? There may be advantages or disadvantages to a joint filing with your spouse. This kind of decision would best be made after receiving legal counsel. Being well informed will enable you to make the ‘best’ decision for your set of circumstances. Back to Top   5. If I file bankruptcy will I lose my home – will I lose my vehicle? The Law in Texas is among the most debtor-friendly states in this country. Unsecured creditors (and the bankruptcy trustee) cannot take your house, your car, your furniture, your jewelry, etc. If you are behind in your mortgage and/or payments on your vehicle – a plan to pay the amount in arrears over a set amount of time (in monthly installments) can be arranged. Back to Top   6. What property will I get to keep? Equity in your home – under Texas Law including up to ten (10) acres in the city and one hundred (100) acres in rural areas. Insurance – you usually get to keep the cash value of your policies. Retirement Plans – pensions which qualify under the Employee Retirement Income Security Act (ERISA) are fully protected by the bankruptcy as well as many other retirement benefits. Personal Property – you will be able to keep your household goods, furniture, furnishings, clothing, appliances, books and musical instruments. In most cases you get to keep all your jewelry. Public Benefits – all public benefits such as Welfare, Social Security and Unemployment Insurance are fully protected. Tools Used on the Job – you get to keep all your trade tools. Wages – In Texas you can protect 100% of earned but unpaid wages. Back to Top   7. Which debts cannot be eliminated (discharged) in either a Chapter 7 or Chapter 13 Bankruptcy? Debts you failed to list when you filed Bankruptcy, however there are a few exceptions to this rule. Debts for child support and alimony. Debts for personal injury or death caused by driving while intoxicated (drugs or alcohol). Debts for student loans – few exceptions may apply Fines and penalties imposed for violating the law, such as traffic tickets and criminal restitution. Property taxes against property you want to keep. Income taxes for the last three (3) years. Mortgage payments in arrears – if you choose to keep your home. Vehicle loans in arrears – if you choose to keep your vehicle. Back to Top   8.Can I file Bankruptcy if I own a business? Yes, you can file bankruptcy if you own a business; however, there are many factors to consider. Having sound bankruptcy legal advice is extremely important. Making well informed decisions should be your main concern. Back to Top   9. In Bankruptcy, what is the difference between a Discharge and a Dismissal? A discharge of a debt in bankruptcy means that the debt has been eliminated – the slate has been wiped clean. A dismissal in bankruptcy means that you did not honor your bankruptcy agreement and as a result your bankruptcy protection has been (or will be) dismissed and you become liable for all your debts. This allows your creditors to start the process of collections, foreclosures, repossessions and lawsuits all over again. Back to Top   10. If I don’t have a SS number can I file bankruptcy? Yes, you can file for bankruptcy. The IRS now allows debtors to apply for an Individual Taxpayer ID No. (ITIN) when they do not have a SS number. Back to Top   11. How can I get more information? If you are on the fence or are seriously considering Bankruptcy, please call the Law Offices of Sidney J Diamond, (915) 532-3327 or email sidney@sidneydiamond.com to set up your free consultation appointment. Making this decision does not in any way obligate you to file bankruptcy or to use the Law Offices of Sidney J Diamond. We understand that making this decision is difficult and emotional. It’s possible you may discover an alternative to bankruptcy that will help resolve your debt. Choosing bankruptcy is not a sign of failure – almost everyone at one time or other struggles with burdensome debt. Please fill out the free Bankruptcy Evaluation form so that we can review your case and be prepared for your free consultation appointment. All of our clients are good people who have experienced hard times and are in need of eliminating or reducing their overall debt. Let us help you. Back to Top Click here for a Free Bankruptcy Evaluation   The Law Offices of Sidney J Diamond is a debt relief agency helping folks in West Texas file bankruptcy. The Law Offices of Sidney J Diamond 3800 N Mesa, Suite C-4, El Paso TX  79902 (915) 532-3327 info@sidneydiamond.com   Disclaimer Se habla Español