Frequently Asked Bankruptcy Questions

These answers may help you determine which of our services is best for your situation.

Must both spouses file together?
The answer is NO. Either spouse may file a bankruptcy on their own. However, many times it is far more advantageous for both spouses to file together. This decision should be made with an experienced bankruptcy attorney.

Can I file my own bankruptcy?
Under the Bankruptcy Act, any individual can file their own bankruptcy proceeding. This is called filing in pro per. If a person wishes to spend enough time learning about this area of the law, about the means test, about what exemptions can be claimed and about what debts are exempt, they can probably get through a simple bankruptcy filing. However, individuals with assets or problem debts are foolish to try to go it alone as they will most likely make expensive mistakes.

Can a paralegal or a legal document service represent me?
In California, legal document preparers and paralegals cannot represent you. They cannot give you legal advice. Further, they cannot represent you in court. They cannot give you advice on how to take the proper exemptions to protect the assets you have, which could result in you losing those assets in a bankruptcy case. You may find out months or even years from now, that because you didn't take appropriate steps, that you did not get rid of that debt, or that you may lose an asset, or any number of other problems. Bankruptcy cases are very complicated and take the full attention of an experienced attorney. People go to paralegals or document preparers because they feel that it is cheaper than hiring a lawyer. A paralegal or legal document service can be the most expensive mistake you ever make.

What is the cost to have attorneys at Spiegel Law Group represent me?
Cost is determined by the scope of work being performed. Our firm has developed a very efficient approach to bankruptcy representation and with your cooperation the attorney fees start at $995, depending upon the amount of work anticipated to complete your bankruptcy. Court filing fees are about $274 to $299. We will give you a written fee quote before we start. We also have payment plans available if necessary.

Are all my debts discharged?
Not all debts are can discharged in a Chapter 7 Bankruptcy. The debts that cannot be discharged include child support, alimony, most student loans, some taxes, and debts incurred as a result of fraud.

How does an Automatic Stay work?
Once you have filed your paperwork with the bankruptcy court, an automatic stay immediately goes into effect. This provision prevents creditors from making direct contact with you or staking a claim on any of your property from the day of filing forward. This will stop any foreclosure proceedings. If you have filed Chapter 13, you must begin making your plan payments.

What is the 2005 Bankruptcy Act Means Test?
Under the 2005 Bankruptcy Act your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter 13. To apply the means test, the courts will look at your average income for the 6 months prior to filing and compare it to the median income for that state. If the income is below the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you must file Chapter 13.

What does the Bankruptcy Trustee do?
Upon filing, the court will assume legal control of your debts and property not covered by your California exemptions. A trustee will be appointed to your case by the court. The job of the trustee is to see that your creditors are paid as much as possible. This person will thoroughly review your paperwork, particularly the assets you have in your possession and the exemptions you wish to claim, and can challenge any element of your case.

When is the 341 Meeting of Creditors?
Approximately a month after filing, the trustee will call a first meeting of creditors, which the debtor must attend. He can go alone or with counsel. This proceeding is also referred to as the § 341 meeting, named after the corresponding section of the bankruptcy code. Creditors rarely attend a Chapter 7 bankruptcy meeting; one or two creditors may attend a Chapter 13 meeting, especially if there is a question as to the legitimacy of some aspect of the plan. Objections are typically resolved by negotiation between the debtor or the debtor's counsel and the creditor. If a compromise can not be reached, a judge will intervene.

Is Credit Counseling required?
The 2005 Bankruptcy Act requires all individual debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy relief and to complete a financial management instructional course after filing bankruptcy. The cost per secession usually averages $40 to $70 from an approved counseling company.

How long does it take to get a discharge?
A normal chapter 7 bankruptcy takes about 4 months until the discharge is issued. At this point, most consider the bankruptcy final.