easy to feel trapped when faced with Bankruptcy...
but Jake Noble is here to help you through it!
Bankruptcy is a process by which a debtor can obtain relief
from his debts, through the courts. This relief may come in
a variety of forms, including full or partial discharge of
the debt, or the imposition of a payment program consistent
with the debtor's financial means.
When people think of bankruptcy, they have traditionally
thought in terms of "Chapter 7" personal bankruptcy.
In a "Chapter 7" bankruptcy:
- A trustee is appointed to oversee your property;
- Some of your assets will likely be surrendered to
the trustee, who will sell them to pay your creditors;
- Depending upon the laws of your state, you will be
allowed to keep some personal property, and probably an
interest in your home (although perhaps not all of your
- Most debts are cancelled.
There are now also income restrictions on who will
qualify for a Chapter 7 discharge, effective as of October,
2005. Assuming those restrictions do not apply, you will
most likely be unable to file a "Chapter 7" bankruptcy if
you have filed and dismissed a "Chapter 7" petition in the
last 180 days, or if you were granted or denied a "Chapter
7" discharge in a prior case within the past six years.
Bankruptcy attorney Jake Noble can discuss your case with
you and find out if you qualify for an exception.
After Bankruptcy is Declared
After you declare bankruptcy, an "automatic stay" of your
debts takes effect. Your creditors will be served with
notice of the bankruptcy, and, after receiving notice, will
be barred from taking certain actions against you while the
bankruptcy is pending.
If you are contacted by a creditor after filing for
bankruptcy, tell Mr. Noble -- it is important that your
attorney know not only of improper contacts, but of any
possibility that a creditor was omitted from the list of
creditors you submitted with your bankruptcy petition, or of
the possibility that notice was not properly served.
If a creditor is intentionally violating the automatic
stay, Jake Noble can bring their misconduct to the
attention of the bankruptcy court.
is a procedure by which you agree to pay a debt that would
otherwise be discharged in bankruptcy. As was previously
described, you may wish to keep your car, and thus may agree
with your lender to continue to be responsible for the car
loan. If you make the choice to "reaffirm" a debt, you will
file a reaffirmation agreement with the Court, which will
evaluate that agreement. It is up to the Court whether or
not the agreement will be approved.
Before a Court will approve a reaffirmation agreement, it
must believe that the agreement:
- Is voluntary;
- Is in your best interest; and
- Will not create an undue hardship.
You may be able to cancel a reaffirmation agreement,
within sixty days of filing it with the court, or before
your bankruptcy petition is approved. Be cautious with
reaffirmation, as you will continue to owe the debt as if
you had never filed for bankruptcy.
Under rare circumstances, creditors may petition a court
to have a debtor declared insolvent. If the court grants
relief, as the bankruptcy occurs without the debtor's
consent, this is termed an "involuntary bankruptcy."
Involuntary bankruptcies occur only under Chapters 7 and 11,
and not under Chapter 13. If a petition for involuntary
bankruptcy is denied, a debtor may be awarded attorney fees
and costs, and may even receive punitive damages, depending
upon the facts of the case.
Court Refusal to Grant Bankruptcy
While most debtors are granted relief, in certain
situations a Court may refuse to grant bankruptcy.
Typically, denials result when the Court concludes that:
- The debtor failed to adequately explain the loss of
- The debtor committed perjury during the course of
- The debtor failed to obey the lawful orders of the
- The debtor fraudulently transferred, concealed, or
destroyed property that should have been included in the
The Cost of Bankruptcy
The cost of bankruptcy will vary substantially, depending
upon the complexity of your case and the type of bankruptcy
you file. You will be able to obtain a "Chapter 7" personal
bankruptcy for a relatively small flat fee from the Noble
Law Firm, while the cost of a "Chapter 11" bankruptcy from
another firm can easily exceed $15,000 in the first year.