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Bankruptcy FAQ

Answering Common Bankruptcy Questions

We will be more than happy to answer any questions you have in addition to the ones on this page. You can contact us by clicking the Contact Us link at the top right hand side of the page.

Will I lose my house if I file bankruptcy?

Chapter 13: You may keep your home and continue to pay regular mortgage payments. In addition, you will pay a monthly payment that is within your budget to "chip away" at the amount of mortgage default that may exist. You will typically receive 3 years or 36 months to chip away at the default.

Chapter 7: You should also keep your home if you have no equity in your home or if your equity is less than $30,000 —assuming you file Chapter 7 with your spouse and are current on your mortgage payments. For the vast majority of people, they don't lose their homes to the bankruptcy trustee even if they file Chapter 7.

Does a previous bankruptcy case prevent me from filing a new bankruptcy case to save my home?

No. A prior bankruptcy case does NOT necessarily prevent or prohibit you from filing a new Chapter 13 bankruptcy case to save your home.

Will bankruptcy stop wage garnishments?

Once a case is filed, your attorney should be able to stop the garnishment if allowed by law.Your attorney will discuss with you whether your garnishment can be stopped.

Will I have to give up all my belongings?

Generally, the bankruptcy laws provide that a person filing for bankruptcy protection can keep exempt assets.

Chapter 13. You retain all of your assets if you file Chapter 13 bankruptcy to save your home or to repay your debts.

Chapter 7. You will probably keep all of your exempt assets. In the vast majority of bankruptcy cases, the person seeking bankruptcy protection retains all of their assets. Request Your Free No-Obligation Evaluation Now... Click HERE

Do I have to list all my debts?

Yes, you must list all of your debts on your bankruptcy documents.

Will anyone come into my home?

No. Nobody is required to come into your home. You should not expect anyone entering your home. Your home is your sanctuary.

Does my spouse have to file bankruptcy with me?

No. You may file without your spouse. In fact, you don't even have to tell your spouse. But in most situations a (non-divorced and non-separated) spouse should be informed— even if it's not required.

Are there debts that I cannot discharge?

Yes, a few debts cannot be discharged. However, almost all debts will be erased.

Generally, all debts will be erased or discharged except the following: child support, alimony, student loans, drunk driving judgments, fraudulent conduct, some tax debt, and criminal restitution. Request Your Free No-Obligation Evaluation Now... Click HERE

Is the IRS affected by my bankruptcy filing?

Yes. The IRS must cease collection actions while a bankruptcy is pending.

Can I keep my financed car?

Generally, but you will have to continue to pay any car loans or lease payments.

Chapter 13: You may be able to keep your vehicle. To keep your leased vehicle you must stay current with your lease payments. Or, you can surrender your vehicle if you don't want to keep the vehicle.

Chapter 7: You may have the option of keeping your vehicle and repaying any car loan. You also may have the right to redeem your vehicle.

How do I know which bankruptcy chapter to file?

Only an attorney can advise you on this legal issue. Choosing which bankruptcy chapter is best for you depends on your goals, debts, and income. A specific strategy will be offered after you have engaged the Schaller Law Firm. Request Your Free No-Obligation Evaluation Now... Click HERE

Chapter 13 is explained more fully... Click HERE

Chapter 7 is explained more fully... Click HERE

Will I lose my retirement savings held by my employer?

No. Any money in a qualified retirement plan is fully protected by the bankruptcy laws "exemptions".

Can I get credit after bankruptcy?

Yes. Anyone filing bankruptcy is allowed to get credit! Although a common misconception, no law prevents a person from getting credit.

Indeed, an entire class of lenders could target the recently bankrupt as customers! Don't be surprised if you get dozens of credit card solicitations after filing Chapter 7 bankruptcy.

In getting a home loan, the size of your down payment, savings in the bank, and stability of your income could be much more important than the fact you filed bankruptcy in the past.

What should I do to file bankruptcy?

Contact the Schaller Law Firm by... Clicking HERE

The process is begun by an attorney listening to your concerns and understanding your goals and dreams. Then an attorney will provide a detailed strategy to accomplish your goals.

You will be required to provide your attorney with certain information, including a listing of your assets, debts, income and monthly expenses. Your attorney will take care of all of the legal matters.

Finally, about a month later, you will be required to attend a meeting with the "trustee" and your attorney. The meeting lasts about 3-5 minutes.

Can I save my home without filing bankruptcy?

Yes, banks do not like bankruptcy either. Negotiating a mutually beneficial resolution could both save your home and satisfy the bank's need to be repaid. Plus, negotiating a repayment plan without filing bankruptcy could lead you to a higher credit score.

What can negotiating do for me?

With the help of a licensed attorney, negotiating may lead to a successful and mutually beneficial resolution between you and the mortgage lender, allowing you to keep your home while making payments that are within your budget.

Should I negotiate with my lender on my own?

Don't take the chance. You need the maximum protection available. Hire a licensed attorney when you are risking foreclosure and eviction. If seriously injured, you would hire a licensed doctor and you wouldn't dream of operating on yourself. If you had serious dental problems, you would hire a licensed dentist and you wouldn't dream of drilling your own teeth. Why risk foreclosure and eviction? Your family is too important to risk.

How can the Schaller Law Firm stop my home foreclosure?

The Schaller Law Firm could negotiate on your behalf against the bank. Once engaged, your attorney could craft an affordable repayment plan that cures any mortgage default on a timely basis. With the bank's agreement, the mortgage foreclosure lawsuit would terminate, the foreclosure would be stayed, the eviction prevented, and you will once again experience peace, quiet and tranquility in your home. Say good-bye to sleepless nights and endless worries. A loan modification could also be attempted.

I have received several solicitations from non-lawyers, both in the mail and over the phone. Why should I choose the Schaller Law Firm?

Be careful. There are many unscrupulous and predatory companies and unregulated con-men who are not on the level. They are looking to collect a consultation fee from you and will do nothing in return. These people are not licensed by any government agency and are uninsured. Frequently they don't even have an office. They work out of their car or meet you at Mc Donalds. What makes the Schaller Law Firm so unique is the fact that it's attorney(s) are insured and licensed by the Illinois Supreme Court, and consequently have a better understanding of foreclosure law than the average negotiation or loss mitigation person.

Do I need to have a specific type of mortgage loan for the Schaller Law Firm to help me?

No. The Schaller Law Firm can work with you regardless of the type of mortgage you have. (Traditional, FHA, VA, Freddie Mac, or Fannie Mae) You can get started by requesting a Free No-Obligation Evaluation... Click HERE

How long do I have before it is too late?

Time is your enemy when you are behind on your house payments. Each passing day puts you further away from negotiating an agreement with your lender. The length of the home foreclosure process varies depending on your State's law and the foreclosure method being used by your lender. If you are reading this, chances are you don't have much time left! You therefore should take action and act fast if you are serious about saving your home.

Do I still have enough time to save my home and stop my home foreclosure?

As long as the sheriff sale has not been held, there is still hope. If a sheriff sale has been scheduled, it is 100% imperative that you act fast or you could lose your home. If you are currently in this situation or want to avoid it, contact attorney Schaller for a free no-obligation evaluation.

How long will it take for The Law Office of Robert Schaller to begin the case once I fill out all of the paperwork?

It could take as little as 1 day, but the Schaller Law Firm believes it is in your best interest to start right away. Time is of the essence. So why not act today? The time frame will vary depending on your strategy, where you are in the foreclosure process, and your financial position. You can get started by requesting a Free No-Obligation Evaluation... Click HERE

I spoke with my lender and they refuse to accept nothing less than the full amount of the mortgage loan. Can Attorney Schaller still help me?

Yes. Lenders are often very inflexible, especially when dealing with the homeowner directly… they know the homeowner doesn't have the knowledge or legal expertise to negotiate an agreement and therefore don't respect the homeowner. They have everything to gain by taking your home. The easiest way to turn a not so receptive lender into a lender with open arms is to hire a licensed attorney who knows how to deal with your lender.

Should I file bankruptcy to save my home?

Maybe. Negotiations are never 100% successful. Regretfully, there are some lenders that just refuse to negotiate an agreement. In these cases, Chapter 13 Bankruptcy is recommended as it will force your lender to agree to a repayment plan that works for your budget. If you need more information on Chapter 13 Bankruptcy, The Law Office of Robert Schaller can provide this to you as well.

Free Bankruptcy Attorney Consultation

To discuss your financial issues with an experienced and compassionate bankruptcy lawyer, call 630-655-1233 or fill out the Contact Us form on this Web site to schedule your free initial consultation.

Please remember that the information below is intended to provide general information to common bankruptcy questions. This information is not intended to be legal advice. Before taking any action, I urge you to engage an experienced bankruptcy attorney who can formulate a specific strategy to solve your specific legal problem.