What is bankruptcy and do I qualify?

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 must be a resident of Delaware for more than 90 days to file in Delaware.

What is the difference between Chapter 7 and Chapter 13?

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 normal 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.

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.

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.

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.

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 credit. Many people are able to obtain mortgage financing to purchase a home after bankruptcy.