Bellenot & Boufford, LLC

A. Congress changed many of the bankruptcy laws effective October 2005. It has been our experience that almost all individuals who would have qualified for Chapter 7 bankruptcy prior to October 2005 also qualified for Chapter 7 under the new laws. There are, however, many changes to the procedure and work involved in filing a Chapter 7 case. While the time and effort to file is much greater, our office will make this process painless and efficient.

A. There are situations that can result in the bankruptcy trustee taking your home and/or other property, however almost all of the people we represent get to keep their personal residence as well as their personal property. We can advise you before ever filing if there is a risk of losing your residence or any other asset. If there is such a risk, we will review all other alternatives with you.

A. Bankruptcy usually stays on a credit report for 7 to 10 years. It is important to understand that the same rule applies for almost all things that appear on your credit report, including late payments, delinquencies and default on other loans, leases and credit cards. Certain legal claims and judgments may also appear.

A. This question requires more specific information about your financial situation. The following are general responses that may not apply in your case. Before relying on this or any other information in taking action, you need to consult with a debt relief agency to analyze your exact situation. Usually we will need all of your financial information in order to provide usable answers. Any debt, asset or financial situation can affect or be affected by another. Bellenot & Boufford, LLC, is a debt relief agency and we help people file for bankruptcy relief under the bankruptcy code.

As a general rule, bankruptcy discharges your personal liability on qualifying debts. In some situations, there are obligations that will not be discharged, such as: student loans; certain tax obligations, child support, certain government penalties and others. Bankruptcy does not usually discharge collateral. If you have a mortgage on your home and you do not pay the mortgage, the lender will be allowed to foreclose in most cases and take the collateral, even though you have been discharged of your personal obligation to pay. The same with car loans. If you don’t stay current, the car is subject to repossession.

A. Review how to save your home from foreclosure to review more detailed information on foreclosure. You may want to consider a loan modification or other workout that will require the lender’s cooperation. The most important thing for you to do is get in touch with someone to help now. If you haven’t missed a payment yet, but you have even a mild concern that you may, get answers now. If the court papers have been served, get help now. The sooner you get help, the less financially and emotionally burdensome the case will be.

There are other ways to save your home, one being Chapter 13 bankruptcy. Whether you can save your home with chapter 13 depends on too many factors for a Q&A/FAQ page to cover. That said, look at your household budget. Add up all of your necessary living expenses including: all mortgage payments; common charges; utilities; food; insurance; medical bills; including pharmacy needs; gas; car payments and all other monthly expenses needed to survive each month. Deduct that sum from your combined take home pay. If there is little or no money available to contribute towards any arrearage, you may not qualify for chapter 13 bankruptcy. Chapter 13 bankruptcy, among other things, is a way to bring your mortgage arrearage current over a period not exceeding five years.

There are times it is just not possible to maintain your home. As difficult as it is to accept this, it is more critical that you do accept this as soon as possible. Then you can immediately take steps to minimize any loss or damage. Never put good money after bad.