Recent FAQs

How does bankruptcy affect my credit?

Filing bankruptcy is event reported on credit reports published by most credit bureaus. Under the Fair Credit Reporting Act, a bankruptcy can be reported for up to 10 years after the date of filing. Credit agencies will sometimes remove the filing after 7 years, particularly in chapter 13 cases.

What can cause a higher chapter 13 payment than initially proposed?

When filing a chapter 13 petition, a plan payment is calculated based on the figures included in the petition, and a plan is proposed by the debtor. In some cases, this payment will be confirmed by the court and may continue for the life of the plan. In other situations, changing the payment may be necessary to obtain plan confirmation. If the debtor changes his or her mind about what plan to pursue, e.g. the debtor decides to pay for a car instead of giving it up, the payment usually changes, and this is no surprise. However, other things can impact the payment, including:

What happens if I fall behind on my chapter 13 payments?

If you miss payments on your chapter 13 plan, you risk being dismissed from your bankruptcy case, or in more unusual circumstances converted to chapter 7. If your case is dismissed, your creditors will be able to resume efforts to collect from you, and you will not receive a bankruptcy fresh start. If a case is converted, a chapter 7 trustee will be appointed to sell your non-exempt property and pay your creditors.

Can I not include some debts in a bankruptcy?

Generally no. Bankruptcy is an all-inclusive process, requiring full disclosure of all debts and assets. However, inclusion of a debt in your bankruptcy filing does not itself determine the final treatment of that debt.

Should I file Chapter 7 or Chapter 13?

For anyone contemplating bankruptcy, the choice of chapters ranks amongst the most important decisions in the bankruptcy process. Which is best is a complex question that involves applying the particulars of a person's financial situation to multiple bankruptcy laws and procedures. At Fabricius & Fabricius, we answer this question for a prospective bankruptcy filer only after our bankruptcy attorney has a conversation with the individual to learn about their priorities and objectives.

What kind of income source do I need for Chapter 13?

A requirement to be a debtor in a chapter 13 case is having "regular income." Practically speaking, the source and regularity of the income is not as important as existence of the income. Chapter 13 bankruptcy involves a court approved payment plan. In order to obtain approval, a debtor must demonstrate to satisfaction of the court, trustee, and other parties that the plan is feasible, i.e. the debtor will be able to make the payments proposed. Usually, this means the debtor must disclose a source of income that will pay his or her basic living expenses as well as the proposed bankruptcy payment. Most sources of income, if large enough in size, will do.

What Happens in Bankruptcy?

Bankruptcy is a federal legal process for resolving problems with debt. After planning and consultation, a bankruptcy petition is filed with the federal bankruptcy court, opening a bankruptcy case. Also filed with the court are detailed schedules and forms providing a complete picture of the debtor's finances, including assets, debts, income, and expenses.

Am I Eligible for Bankruptcy?

This question is tricky in its simplicity. While almost every individual person is eligible to file a bankruptcy, the real consideration is eligibility for bankruptcy relief, which can vary from person-to-person. Most frequently, the question is "can I file a chapter 7 straight bankruptcy and obtain a fresh start with a discharge?"

Where is your office?

Our office is located in the second floor business center above the office of Dr. Sidney Libfraind, DMD, at 106 N. 1st Ave., Knightdale, NC. For more information, including directions and a photo, please see the Knightdale Office page on our main website.

What should I bring to my initial consultation?

We have a short form pre-consultation form that requests certain background information for opening a file, as well as an overview of your finances to allow our attorney to prepare for the consultation. This form is available online.

In addition to the form, we recommend you bring, if possible:

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