Frequently Asked Questions at The Law Office of Sherry L. Johnson

Chapter 7 bankruptcy helps eliminate qualifying unsecured debts, such as credit card balances and medical bills, through a debt discharge. Chapter 13 bankruptcy allows individuals to reorganize their debts into an affordable repayment plan over three to five years while protecting important assets, such as a home or vehicle.

Yes. When you file for bankruptcy, an automatic stay goes into effect. This court order typically stops creditor phone calls, collection letters, lawsuits, wage garnishments, repossessions, and foreclosure actions while your case is pending.

Yes. Bankruptcy can help stop foreclosure proceedings. Chapter 13 bankruptcy is often used to catch up on missed mortgage payments through a structured repayment plan, allowing many homeowners to keep their homes.

Not necessarily. Many people who file Chapter 7 bankruptcy are able to keep their homes, vehicles, and personal belongings through bankruptcy exemptions. An experienced bankruptcy attorney can explain which assets may be protected under the law.

Many unsecured debts can be discharged, including credit card debt, medical bills, personal loans, utility bills, and certain judgments. However, some obligations, such as most student loans, child support, alimony, and certain tax debts, may not qualify for discharge.

Eligibility for Chapter 7 is largely based on your income and financial situation. A means test is used to determine whether your income falls within the allowable limits. A bankruptcy attorney can review your circumstances and determine your options.

Most Chapter 7 cases are completed within approximately four to six months. Chapter 13 cases generally last three to five years because they involve a court-approved repayment plan.

No. While bankruptcy does affect your credit, many individuals begin rebuilding their credit soon after their case is completed. In fact, filing for bankruptcy may provide a fresh financial start and improve your ability to manage debt responsibly moving forward.

In many cases, yes. Depending on your equity in the vehicle and whether you are current on payments, Chapter 7 or Chapter 13 bankruptcy may allow you to keep your vehicle while addressing your debt concerns.

Bankruptcy laws are complex, and filing incorrectly can lead to delays or unfavorable outcomes. An experienced bankruptcy attorney can guide you through the process, protect your rights, explain your options, and help you achieve the best possible financial outcome.