“Oh, no, Bankruptcy!”
If you are a bankruptcy client and you have an “Oh, No!” moment, chances are one of the following will put your mind at ease:
“Oh, no! I need to file bankruptcy but don’t have the money.”
It’s OK:
This is our most common “Oh, No.” Naturally, people who are overwhelmed by debt do not have a lot of money laying around to pay an attorney. But, most people find a way. Possible solutions: Many of our clients borrow from family or others, such as a co-worker or boss. As long as you intend to repay and disclose the debt on your bankruptcy, that is fine. Other clients simply stop paying credit cards or other dischargeable debt and use that money to file bankruptcy. Particularly, if you have a garnishment in progress you should do whatever it takes to file ASAP. Otherwise, you will simply continue to fall down a deeper hole. Pawn shops can even provide temporary cash in exchange for items you may not need or can pick up later.
“Oh, No! I filed bankruptcy and one of my creditor Notices was returned to me.”
It’s OK:
Just forward the notice to a corrected address. You can check copies of bills you still have, call the creditor or go online for a current address.
“Oh, No! I received a foreclosure notice on my home.”
It’s OK:
If you are surrendering your home, they have to foreclose in order to gain title. Your bankruptcy discharges all debt related to the home, so they cannot come back after you for anything.
If you intend to keep your home and are behind on payments the bank may file a foreclosure. Normally if you promptly catch up the payments and keep communicating with the bank it is no problem to keep your home. The bank does not want your home back. They have plenty of them.
“Oh, No! I received a repossession notice on my car!”
It’s OK:
If you are surrendering the car in bankruptcy, just file the repossession notice away and forget about it. Because of your bankruptcy, you will owe nothing.
If you plan to keep your car you should call the bank right away and make payment arrangements. They will like you very much if you communicate regularly and make an effort. They do not want your car, they have too many already.
“Oh, No! I forgot to list some creditors.”
It’s OK:
While your case is still open, you can add them through our office for an office fee of $50 and a filing fee of $26. Just send us the fees and copies of the bills.
“Oh, No! They garnished my wages or bank account after I filed bankruptcy!”
It’s OK:
We can get the money back for you. We just need documentation from you showing the amount garnished, which creditor garnished, and the name and address of your payroll clerk at work for wage garnishments. There is no additional fee for this.
“Oh, No! I am still getting telephone calls or bills from creditors after filing bankruptcy.”
It’s OK:
Go ahead and tell callers you have filed bankruptcy through our office and give them our phone number. For written bills, you should give creditors 30 days from your date of filing to stop billing. If you are still getting bills after 30 days, get us a copy of the bill so we can send it back to them with our letter and get them stopped. Usually these bills are inadvertent and the creditor just needs a reminder.
“Oh, No! I have not heard from Jeff since my hearing.”
It’s OK:
After your hearing, “no news is good news.” Other than a Report of Abandonment or No Asset Report, you may not receive much in the mail, and we usually do not call unless a problem comes up. Silence is Golden!
“Oh, No! I received a Report of Abandonment for my Home, Car etc.”
It’s OK:
A Report of Abandonment just means the trustee is not going to exercise any interest the estate may have in your assets. You can file it away and forget about it.
“Oh, No! I have been discharged from bankruptcy in the last 6 years but now I have had a major financial disaster.”
It’s OK:
You can file a Chapter 13 bankruptcy at any time. In this case you would pay back a portion of your debt over 3-5 years, leaving you enough money to cover your basic expenses. Contact an attorney.
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