Bankruptcy FAQ

The moment that your Chapter 7 bankruptcy petition is filed with the court most of the tactics that debt collectors have been using to collect the debt will stop. Creditors and collection agencies will be automatically notified by the court of your filing and are then required to stop activities such as making intrusive phone calls or sending demand letters. Creditors will also no longer be able to garnish your wages without first receiving permission from the Bankruptcy court – a request to which Mr. Levin-Epstein, as your attorney, is prepared to vigorously object.

You are released from your obligation to pay the majority of your unsecured debts once the Court issues a formal discharge order. Once the discharge order is issued, creditors cannot take any further collection action against the debtor. Some unsecured obligations, including child and spousal support and student loans, cannot be discharged in a Chapter 7 bankruptcy.

Each case is different, but a discharge order can be expected approximately 120 to 150 days after the case was filed. Receiving the discharge order may take longer if creditors contest it.

The bankruptcy code includes specific anti-discrimination provisions that prevent an employer from discriminating against an employee who has filed for bankruptcy.

How the court treats your home depends on whether or not you have equity in it. If you have equity in your home, then you are entitled to a homestead exemption that allows you to keep a certain amount of that equity if the house is sold as part of the bankruptcy proceedings. If you do not have equity in your home but are current with your mortgage payments then, in many cases, the court will not sell the house.

Your spouse will not be affected as long as they were not responsible for the debt.