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Common Questions and Misconceptions.

Frequently Asked Questions

  1. Do you take cases from Texas and Arkansas?
  2. I heard that the law was changed and that almost nobody can file a Chapter 7, right?
  3. What are the differences between Chapter 7 and Chapter 13?
  4. Will I ever be able to buy a house or car again after I file a bankruptcy?
  5. What happens when I file a bankruptcy?
  6. Will I have to go to Court?
  7. When will the phone calls and letters stop?
  8. How long does bankruptcy stay on my credit report?
  9. My house is set for foreclosure, will filing a bankruptcy stop the foreclosure?
  10. Can filing a bankruptcy stop a car repossession or allow the car to be reclaimed?
  11. I have been served with a lawsuit, what should I do?
  12. What do I need to bring to my free consultation?

1: Do you take cases from Texas and Arkansas?

Yes. The McDaniel-Binkley Law Office regularly handles cases from Texas and Arkansas, including cases from a large area of surrounding counties in each state.

2: I heard that the law was changed and that almost nobody can file a Chapter 7, right?

That is incorrect. The law was changed but most people are able to file a Chapter 7 or 13, depending upon which best serves their needs.

3: What are the differences between Chapter 7 and Chapter 13?

A Chapter 7 Bankruptcy typically lasts three months. In the Chapter 7 you are able to discharge unsecured debts such as credit cards, medical bills, payday loans and other unsecured or signature loans. In a Chapter 7 Bankruptcy you must remain current on your vehicle and house payments if you wish to retain them.

A Chapter 13 Bankruptcy is a repayment plan where individuals are allowed to modify loan agreements and even eliminate significant portions of their unsecured debts. Many people mistakenly believe that a Chapter 13 requires them to repay all theirs debts in full. That is not required. A Chapter 13 Bankruptcy helps debtors to restructure and repay different debts over 36 to 60 months. Chapter 13 helps people who are behind on their house and facing foreclosure, behind on their vehicle and avoiding repossession, and/or owe the IRS. Chapter 13 has many advantages including in some cases the opportunity to substantially reduce payments on your vehicle, offer lower interest rates on some other secured debt payments, and to discharge a large percentage of you unsecured debts.

4: Will I ever be able to buy a house or car again after I file a bankruptcy?

Your credit report will reflect that you have filed a bankruptcy for 7 to 10 years following your bankruptcy filing. Our former clients do not report that this listing has made it impossible for them to finance things again in the future.

We do recommend that if you go to finance something after your bankruptcy is over that you quickly disclose to the lender that you have a bankruptcy on your credit so that you do not waste anytime trying to finance something with one of the few lenders out there that will not work with someone who has bankruptcy on their credit report.

5: What happens when I file a bankruptcy?

As soon as you file a bankruptcy a notice goes out from the Bankruptcy clerk that notifies your creditors that you are in a bankruptcy. Upon notice of a bankruptcy filing the creditors are bound by the Automatic Stay of the United States Bankruptcy Code, the Automatic Stay says that all forms of contact by creditors must stop. This includes contacts such as phone calls, letters, bills, lawsuits, repossessions, and foreclosures.

6: Will I have to go to Court?

It is fairly rare for you to have to go to Court in Chapter 7 or Chapter 13 Bankruptcy. Typically you will only attend one informal meeting in front of a Chapter 7or Chapter 13 Trustee. The Trustee is not a judge and your attorney will attend the meeting with you.

7: When will the phone calls and letters stop?

As soon as we are hired to handle your bankruptcy filing we will begin to work to stop these contacts. Once your bankruptcy is filed the Automatic Stay of the United States Bankruptcy Code goes into effect and prohibits your creditors from contacting you again. No further phone calls should be made to you, to your work, to your family or to your friends.

8: How long does bankruptcy stay on my credit report?

Typically bankruptcy stays on your credit report seven up to ten years, but as soon as your bankruptcy is over you can immediately start to reestablish your credit by making timely full payments on the secured debts that you have chosen to retain.

9: My house is set for foreclosure, will filing a bankruptcy stop the foreclosure?

Filing a bankruptcy can stop a foreclosure, if you do not wait too long. There is no charge for the initial consultation so get in to see us as soon as you know you are getting behind on your payments so that we can discuss your alternatives and you can choose the options that will work the best for you.

If you wait too long, it may be too late to stop the foreclosure or repossession of your home.

10: Can filing a bankruptcy stop a car repossession or allow the car to be reclaimed?

Yes. Once you file a bankruptcy your creditors must stop collection and repossession actions immediately. Also through a Chapter 13 Bankruptcy you can make arrangements to either pay the arrearage on the vehicle, repay the debt on the vehicle, or pay the value of the vehicle, whichever your situation qualifies for.

A repossessed vehicle can be reclaimed and returned if you act promptly.

However, if you wait and the vehicle is sold by the creditor after they have repossessed the vehicle, then it will be too late to regain possession of your vehicle.

11: I have been served with a lawsuit, what should I do?

Immediately call the office to set up a free consultation. Filing a bankruptcy will normally stop all litigation.

12: What do I need to bring to my free consultation?

We have a list on our website, please click on the Bankruptcy Checklist button.

 

 

(This list is not intended to be a complete list of required documents; additional documents may be required).