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Frequently Asked Questions (FAQ) About Bankruptcy

Understanding Bankruptcy with Walden Legal Solutions || FAQs Answered

1. What is bankruptcy?

  • Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court.

2. What is the difference between Chapter 7 and Chapter 13 bankruptcy?

  • Chapter 7 bankruptcy, often referred to as “liquidation” bankruptcy, involves the sale of a debtor’s non-exempt assets to pay creditors. Chapter 13 bankruptcy, known as “reorganization” bankruptcy, allows individuals to keep their property and pay off their debts over time, usually three to five years.

3. How do I know if I qualify for Chapter 7 bankruptcy?

  • Eligibility for Chapter 7 bankruptcy is determined by the means test, which compares your income to the median income in your state. If your income is below the median, you may qualify for Chapter 7.

4. What assets can I keep if I file for Chapter 7 bankruptcy?

  • Certain exempt assets can be retained, such as a portion of home equity, personal property, retirement accounts, and tools of the trade. The specifics can vary by state.

5. How does filing for bankruptcy affect my credit score?

  • Bankruptcy will have a negative impact on your credit score at the very beginning. However, it provides a fresh start, allowing you to rebuild your credit over time.

6. Can bankruptcy help with student loan debt?

  • While student loans are generally not dischargeable in bankruptcy, there are circumstances under which they can be addressed. Consult with us to explore your options.

7. How long does the bankruptcy process take?

  • Chapter 7 bankruptcy typically takes about four months from filing to discharge. Chapter 13 bankruptcy involves a repayment plan that lasts three to five years.

8. What is the cost of filing for bankruptcy?

  • The cost can vary based on the complexity of your case. We offer transparent pricing and flexible payment plans to make the process more manageable.

9. How can I schedule a consultation with Walden Legal Solutions?

  • You can schedule a virtual consultation online or on the calendar below. We offer flexible scheduling to accommodate your needs.

10. Why choose Walden Legal Solutions for your bankruptcy needs?

  • Walden Legal Solutions provides a stress-free and personalized legal experience through secure communication and flexible scheduling. Our virtual law office ensures convenience, privacy, and cost-effectiveness.
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