Question: Will filing bankruptcy stop all collection activities against me?
Answer: Filing a bankruptcy petition stops most types of collection activities against you. It will stop a harassing collector calls, lawsuits, garnishments, foreclosures and other types of collection activities.
Question: Will filing bankruptcy stop a child support action or a criminal action?
Answer: Bankruptcy does not stop child support or criminal actions. There is a special exception for these types of actions as well as other special situations.
Question: Can I get rid of a student loan or tax liability through bankruptcy?
Answer: Generally speaking, you cannot discharge student loans or tax liabilities through bankruptcy. However, there are some rare exceptions.
Question: Can I keep my home if I file bankruptcy?
Answer: Oftentimes, people can keep their home if they file for bankruptcy. It depends upon the amount of equity in your home. For example, Colorado law provides that $75,000 in equity in your home is exempt (or $105,000 for older and disabled persons). Let me give an example to show how this works.
If your home's appraised value is: $345,000.
If the loan amount on the home is: $285,000.
Your equity in the home would be: $ 60,000.
Therefore, in this example, under Colorado law, the $75,000 homestead exemption would allow you to keep your home in bankruptcy because your $60,000 in equity is less than the $75,000 exemption.
In Wyoming the homestead exemption is $20,000 per person. Using this same example, only a portion of the equity in the home would be exempt under Wyoming law. The home would have to be sold and the proceeds, in excess of the homestead exemption, applied to the debts.
Question: Can I keep my retirement funds if I file for bankruptcy?
Answer: Yes, most people can keep their 401k, pension or retirement funds.
Question: Do I have to go to court?
Answer: You do not normally have to go to court in a simple Chapter 7 bankruptcy. However, you do have to attend the Section 341 creditor's meeting. This meeting is held by the trustee, not the judge. You have to be sworn in and answer the trustee's questions about your case. The questioning can last five to ten minutes. Occasionally, creditors will attend and ask questions also.
Question: How does the process work?
Answer: First, we will send you a questionnaire about your financial situation. You will fill it out and submit it to Harmony Law. We will meet with you to discuss your options and your best course of action. One of the initial questions is whether you qualify for Chapter 7 bankruptcy. If you choose to go forward with a chapter 7 bankruptcy, we will prepare and file the petition. We will then attend the section 341 meeting with you and help you navigate the legal process all the way through discharge.
Question: How do I get started?
Answer: You have three options:
Option 1: Fill out our online bankruptcy questionnaire.
Option 2: Contact Harmony Law through our website
Option 3: Contact Harmony Law by telephone at 970-488-1857.