Below are frequently asked questions regarding the bankruptcy process:

I AM PAYING BACK MY BILLS, BUT I WON'T EVER GET EVERYTHING PAID OFF.  IS BANKRUPTCY A GOOD OPTION? 

All cases are specific and the decision to file bankruptcy is an important one. In many cases, filing bankruptcy will allow you to start fresh again and put your money towards your family or the property that you need to keep, like your car or your home.  It is important that you meet with an attorney who recognizes your struggles and is willing to work with you.

MY PAYCHECK IS BEING GARNISHED AND I DID NOT KNOW ABOUT IT. CAN I STOP THE GARNISHMENT? 

Filing bankruptcy will stop the garnishment and protect your paycheck and/or bank account from being garnished.  However, the creditor will get to keep the funds it has already garnished. Therefore it is important to contact The Farrell Law Firm immediately to protect your money.

MY CAR HAS BEEN REPOSSESSED, BUT NOT BEEN SOLD.  CAN I GET IT BACK?

In many circumstances, you can file a bankruptcy up until the sale of the car and get the car returned to you.  However, you need to contact an attorney immediately to start the paperwork and prepare the necessary documents for filing prior to the sale.  Please note that the creditor my charge storage and repossession fees in order to have the vehicle return.  You will also need to show six months prepaid proof of insurance and the creditor listed as the loss payee on the insurance. Contact The Farrell Law Firm at 314-965-1800 to discuss what options are available. 

AM I TOO LATE? THE FORECLOSURE IS IN A FEW DAYS?

In many circumstances, you can file a bankruptcy up until the actual sale in order to stop the foreclosure.  However, you need to contact an attorney immediately to start the paperwork and prepare the necessary documents for filing prior to the sale. It is very important to contact an attorney because in some circumstances the "automatic stay" or the bankruptcy protection will not be in place and will need to be imposed.  If the house is sold at a foreclosure sale, the house is no longer yours. Therefore, you must talk to a legal representative PRIOR to the sale in order to protect your home.  Contact The Farrell Law Firm at 314-965-1800 to discuss what options are available. 

I DO NOT WANT TO KEEP MY HOUSE. ARE THERE IN ANY OPTIONS?

Yes, bankruptcy is an option which allows the discharge of unsecured debt or wipe out secured loans if you surrender the collateral. By filing bankruptcy, you will protect yourself from your creditors or mortgage lender being able to recover money from you in the future.

MY FORECLOSURE ALREADY HAPPENED. AM I RESPONSIBLE FOR ANY DEBT?

Most likely.  When a house sells at auction typically it does not sell for what you owe on it.  Therefore, you are responsible for the difference of what you owe and what it sold for.  This is called a deficiency. For example, if you have a $100,000.00 mortgage on your property and it sells for $75,000.00 at the foreclosure sale, you are responsible to the mortgage company for $25,000.00. 

WHAT ABOUT MY CREDIT? WILL I EVER BE EXTENDED CREDIT AGAIN AFTER FILING BANKRUPTCY? 

People are always surprised at how many creditors will look to extend you credit. It is always in your best interest to make sure you are working with someone who is familiar with the bankruptcy process.

WHAT CAN I DO?

Contact The Farrell Law Firm at 314-965-1800 to discuss what options are available to you.  We have a free consultation and will work with you on the price.