Frequently Asked Questions
Below are some frequently asked questions regarding bankruptcy.
What are exemptions?
If property is exempt, it cannot be taken by the Bankruptcy Trustee to pay your creditors. If the property is not exempt, the trustee can sell the property to pay unsecured creditors. In a Chapter 13 , exemptions will determine the amount of the monthly payment plan.
Will I lose my home if I file bankruptcy?
This depends on the equity you have in your home and whether Nebraska’s homestead exemption will cover any equity you may have in your home. When filing a Chapter 7 , you could lose your home if you are behind on your mortgage. While filing a Chapter 7 will put an automatic stay into effect and prevent collection attempts, once the Chapter 7 is completed, the mortgage company could seek foreclosure if you are still behind on payments. In a Chapter 13 , you can keep your home so long as you are current on the payment plan and the payment plan incorporates any past due payments.
What can I keep when filing bankruptcy?
Many people who file for bankruptcy are able to keep their clothing, jewelry, home, vehicle, and retirement accounts. What a debtor is allowed to keep depends on each person’s unique financial situation.
How long will bankruptcy stay on my credit report?
Up to ten (10) years.
Do I qualify to file for bankruptcy?
Qualification for filing bankruptcy is generally determined by your income and expenses. To file a Chapter 7, you must pass the “means test”. Even if you don’t qualify to file a Chapter 7 , you may still have the option to file a Chapter 13.
Contact bankruptcy attorneys at Stephanie Flynn Law or call (402) 325-8469 to discuss whether you qualification for filing bankruptcy and how filing can help your financial situation. Stephanie Flynn Law is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.