Bankruptcy FAQs

Can you be denied a student loan because you or your parents file bankruptcy?

No.  Section 525 of the Bankruptcy Code prohibits discriminatory treatment by any governmental or other student loan program on the basis of filing a bankruptcy. In other words, a student loan agency cannot deny your loan application based on the filing, by you or anyone you know, of a bankruptcy. If you would like to read Section 525 for yourself, see section 525

2021-08-25T12:06:20-07:00November 2nd, 2013|

Can I remove liens against my property?

 Yes.  Under certain circumstances, judicial liens and “nonpossessory, nonpurchase-money security interests”  may be removed if, based on the value of the asset and the amount of senior liens and encumbrances against it on the date your bankruptcy case is filed, the fixing of the lien causes it to “impair” an exemption to which you are entitled under State (or other applicable) law. Removing Judgment Liens Removing Junior Mortgage Liens

2021-08-25T12:04:57-07:00November 2nd, 2013|

Can I pick and choose who to list in my bankruptcy case?

Absolutely not.  I don’t know where people get this idea. You must list all your assets and all your debts in ANY chapter of bankruptcy. You may voluntarily repay anybody you want after your case is concluded (and you are required to repay any debts that are not discharged), but you are still required to list all your creditors. Can you only bankrupt certain debts?

2021-08-25T12:03:03-07:00November 2nd, 2013|

How do I know what exemptions I have in bankruptcy and how much I can protect of my assets in my state?

Exemptions are protected allowances for the value in certain assets.  For example, a homestead exemption protects the equity you have in your home, up to a certain value.  All States have different exemption laws which protect the value in certain assets. You need to check with a qualified bankruptcy attorney regarding what exemptions you are entitled to when you file your case. Which state’s laws you use depends on where your domicile was located for the 2 years prior to commencing your bankruptcy case [...]

2021-08-25T12:02:35-07:00November 2nd, 2013|

What does it mean to bankrupt or discharge a debt?

Many people refer to getting rid of their debts in bankruptcy as “bankrupting” the debt.  They often ask “can I bankrupt this debt?”   That is incorrect terminology.  The legal term for this is “discharge”.  What happens in bankruptcy (assuming you are successful) is that your legal obligation to pay on your debt will be discharged.   Debts are never technically eliminated.   They still exist after a bankruptcy, but you no longer have the legal obligation to pay on the ones that are discharged (or, [...]

2021-08-25T12:01:38-07:00November 2nd, 2013|

Where Does My Bankruptcy Case Get Filed?

Your case is filed in the federal judicial district where you have resided or have your domicile (or for a business, its principal place of business), or principal assets located  for the greater part of the 180 day period prior to the date your case is filed

2021-08-25T12:00:19-07:00November 2nd, 2013|

Is it too late to file bankruptcy if I’m being sued or already have a judgment against me?

No.  It’s almost never too late to file bankruptcy.  Assuming that it is a dischargeable debt (meaning one that isn’t incurred through fraud, or a domestic support obligation, or one of the others Congress has excluded from discharge), you can still get rid of the debt even if a creditor has filed a lawsuit against you and gotten a judgment.  You can even get rid of the debt if they have a lien against your property (although the lien will remain against the property unless [...]

2021-08-25T11:59:23-07:00November 2nd, 2013|
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