What is Bankruptcy?
Bankruptcy is a federal court proceeding that gives debtors immediate relief from their creditors. If your income does not meet your expenses, you may qualify for bankruptcy. Our firm can help to review your income and expenses to determine if you can file. You also must be a resident of Delaware for more than 90 days to file in Delaware . As an individual, you may file under one of two bankruptcy chapters. Chapter 7 is a liquidation plan under which most of your unsecured debts are discharged without repayment to the creditors. Chapter 13 is a reorganization plan. Under Chapter 13, you continue to pay your normally monthly bills, including your mortgage. You then pay an agreed amount to the Trustee, a bankruptcy official, who distributes these funds to pay your creditors. Chapter 13 plans last for three to five years. Our attorneys can help you determine which type of bankruptcy is best for your situation.

Do I have to give up my house, my car or my possessions?
In most cases, the answer is no. You may file bankruptcy and continue to make your regular monthly mortgage payments and car payments. If you are behind on your payments, filing bankruptcy may help you catch up on your payments and prevent a foreclosure or a repossession. In most cases, bankruptcy can save your home, your car, your furniture, and your savings. In Delaware , the law allows an individual to keep $25,000 worth of personal property.

How can I stop my creditors from harassing me?
As soon as your case is filed, the Bankruptcy Court orders your creditors to stop contacting you. Mortgage foreclosures, repossessions, lawsuits and wage attachments may be stopped by filing bankruptcy.

What financial problems can bankruptcy not assist me with?
Bankruptcy cannot eliminate your obligations to secured creditors. Secured creditors are those creditors that hold a lien on your property, such a mortgage on your home or the creditor for your car loan. If you cannot pay on these loans, you cannot keep those items. However, bankruptcy can allow you to catch up on these payments.

Bankruptcy does not allow for the discharge of certain types of debts that are given special treatment under the law. These debts include: certain taxes, alimony, child support, other debts relating to divorce, student loans, court ordered restitution, and criminal fines.

Bankruptcy also cannot not protect co-signers from creditors. If you file bankruptcy and your obligation to pay on the debt is discharged, the creditor still has the right to collect the full amount from the co-signer.

Finally, bankruptcy cannot eliminate debts which you incurred after the filing of bankruptcy.

Can I file alone or do I have to file with my spouse?
You can file alone or with your spouse. However, if you have joint debts with your spouse, it may be wise to file together.

Do I need a lawyer to file and if so, how much does it usually cost to file?
The bankruptcy process is difficult and you may lose property or other rights if you do not understand the laws. Although you are not required to have an attorney in order to file bankruptcy, we recommend you speak with one of our attorneys to discuss your situation to determine if you are able to file. Our fees start at $1000.00 and they include all court costs and administrative expenses.

What do I need to do before I file bankruptcy?
It is important to collect the majority of your financial documents before you file bankruptcy. These documents include: recent tax returns and W-2s, mortgage documents, car loan documents, credit card bills and loan documents, lawsuit paperwork, bank statements, pay stubs, insurance policies, retirement account documents and a recent credit report. There may be other documents necessary to your bankruptcy filing. In addition, you will need to attend credit counseling at an agency approved by the District of Delaware 180 days prior to the filing of your bankruptcy. Our attorneys can advise you which documents are necessary in your case and give direct concerning the credit counseling requirement at the free initial consultation.

Can I get credit after filing Bankruptcy?
Your bankruptcy is listed on your credit report for 10 years. However, bankruptcy gives you a “fresh start” in establishing your credit. Some creditors have special programs to assist people that have filed bankruptcy re-establish their creditor. Many people are able to obtain mortgage financing to purchase a home after bankruptcy.

Office Locations
We have six locations in Delaware to serve you. There is no charge for the initial consultation. Call today to set up your appointment.