bankruptcy: most frequently asked questions
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BankruptcyMost Frequently Asked Questions
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
BankruptcyEach year, more and more Americans find themselves overwhelmed by debt, interest payments on borrowed funds, and everyday expenses.
Consumers have options when it comes to getting out of debt. However, when they have exhausted all of those options, they may be forced to turn to bankruptcy as a final resort.
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
What is Bankruptcy?•Bankruptcy is a legal process to relieve financial stress when an individual or company has more debt than they are reasonably capable of paying.
Depending on the type and amount of the debts, some can be erased completely. Others are rolled into a modified payment plan.
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
What Debts Can Be Resolved?
Debts that are not eligible for bankruptcy include, but are not limited to: •Child support and alimony payments•Federal income tax liabilities•Federal student loans•Wages owed to employees•Debts that are due to DUIs, fraud cases, or other malicious acts•Debts that were not discharged in a previous bankruptcy
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
Are There Different Types of Bankruptcy?
There are several types of bankruptcy filings:
Chapter 7 Chapter 11 Chapter 12 Chapter 13
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
What is the Most Common Type?
•The most common type of bankruptcy used by consumers is Chapter 7. In 2010, a total of 1,139,601 Chapter 7 cases were filed. Businesses filed 39,485 of those and individuals (or families) filed the remaining 1,100,116.
•Chapter 7 eliminates all debts eligible for bankruptcy, and in return, the consumer must forfeit most assets. These are sold and the proceeds used to pay off creditors.
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
Can Bankruptcy Save My Home?
The filing of bankruptcy triggers the automatic stay which stops all creditors from any action to collect their claim including foreclosure.
Through Chapter 7 bankruptcy, consumers are often able to eliminate enough other debt to qualify for a modification of their mortgage, thus saving their home.
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
Is It Possible to Obtain an Auto Loan After Bankruptcy?
Absolutely! Many lenders now offer special programs for consumers who’ve faced financial hurdles. They realize that a consumer who has filed a Chapter 7 bankruptcy case is actually a better credit risk than a consumer sitting with overwhelming debt.
In fact, we have a relationship with a local car dealership that places virtually all of our clients in late model cars after their bankruptcy cases are filed.
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
Erin B. Shank, P.C. Can HelpThe Law Firm of Erin B. Shank is devoted exclusively to handling bankruptcy, debt consolidation, tax debt and foreclosure cases. Erin is a proud member of the National Association of Consumer Bankruptcy Attorneys and co-chair for the state of Texas.
If you’re struggling with debt, please call me to set up a free consultation. We’ll take about 45 minutes to discuss your situation, explore your options, and choose a strategy that is right for you.
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161
Erin B. Shank, P.C. Can HelpThe Law Firm of Erin B. Shank is devoted exclusively to handling bankruptcy, debt consolidation, tax debt and foreclosure cases. Erin is a proud member of the National Association of Consumer Bankruptcy Attorneys and co-chair for the state of Texas.
If you’re struggling with debt, please call me to set up a free consultation. We’ll take about 45 minutes to discuss your situation, explore your options, and choose a strategy that is right for you.
Erin B. Shank, P.C. www.centraltexasbankruptcy.com
(254)296-1161