Why Bankruptcy?


If you’ve got questions about bankruptcy proceedings or how filing for bankruptcy may affect your financial health in the future, it may help to first browse our frequently asked questions. For more in-depth information about your bankruptcy case, call us at 1-877-DEBTDOX.

Will bankruptcy affect me negatively?

Millions of people seek relief from debts and claims of creditors by filing for bankruptcy each year. Federal Bankruptcy Code was established to help people erase the emotional and economic effects of excessive debt. The experienced bankruptcy attorneys of The Debt Doctors will guide you through this process and devise a strategy that will minimize negative effects and help you start over financially.

I see a lot of people filing bankruptcy, why shouldn’t I?

Bankruptcy is not for everyone. In fact, there are often alternatives to bankruptcy that may produce far better results. We’ll provide you the honest information you need to decide on the plan that is best for you.

Before you file for bankruptcy, make sure to consult with a bankruptcy attorney, such as the team here at The Debt Doctors. There are critical issues regarding proper disclosure of your assets and the correct timing for filings that have to be done properly or you risk getting a bad result. It’s important to ensure that you are working with a professional who is well-versed in the nuances of the new bankruptcy laws to maximize the benefits you can receive.

Are there different types of bankruptcy?

Yes. They’re known by the title of the Chapter of the Federal Bankruptcy Code in which they appear. Each “Chapter” contains a different set of laws and rules. Visit “Types of Bankruptcy” to learn more.

How does bankruptcy work?

A bankruptcy case begins with the filing of a petition and several forms in bankruptcy court. On the forms, you’ll list all of your assets, debts, income, expenditures, as well as other personal background and financial information.

In a Chapter 7 case, the court will generally appoint a trustee to represent the interests of your creditors. About a month or so later, you’ll be required to attend a 341 meeting (also called a meeting of creditors) with the trustee to answer questions regarding your assets, debts, and so forth. Despite the name, creditors rarely attend these meetings. After the meeting, the trustee liquidates (sells) unexempt property or enters a report that no assets will be sold. Then after a period of time, your case will be discharged, meaning that you no longer legally owe your creditors and that they are forbidden from attempting to collect any percentage of the unpaid balances you have with them.

A Chapter 13 case works differently. You will file the same papers as under a Chapter 7. But in addition to that paperwork, you have to file a plan for repaying your debts with the bankruptcy court. Upon filing, you will begin sending payments directly to the chapter 13 trustee. The trustee then pays your creditors according to the terms of the court-approved plan. The plan will prioritize the order in which creditors are paid. When you have followed the plan to the end and your creditors have been paid in accordance to it, the court will discharge your case.

Does bankruptcy wipe out all of my debts?

No. In fact, the key reason to consult with a bankruptcy attorney is to ensure that you’re able to most effectively erase your debt. After all, if bankruptcy isn’t going to help, why go through the process?

In general, most common debts that will be discharged are: credit card bills; medical bills, and personal loans.

Will I be able to get credit again?

Yes, there is life after debt—particularly when it comes to credit. But keep in mind that, before filing for bankruptcy, if you are delinquent on your debts, your credit is already affected and bankruptcy will not affect your credit much more. However, if you take the right steps, after a few years the bankruptcy will disappear from your credit report and you can begin reestablishing credit immediately after your discharge. The Debt Doctors attorneys can guide you on the path that will eventually enable you to secure regular rates on loans and credit cards.

How do I get started?

Your first appointment with The Debt Doctors is always free. We want to give you honest advice based on your financial situation and provide you with enough information to allow you to make an informed decision whether bankruptcy is right for you. Call us at 1-877-Debt-Dox to complete a free legal evaluation form and discuss your case with an attorney who can guide you down the path to financial recovery.

How can I pay for the bankruptcy procedures when I can’t pay my bills?

The Debt Doctors offer affordable payment options. You can retain The Debt Doctors for as little as $100. Once you pay the minimum $100 retainer, The Debt Doctors will help you manage your creditors to free up money to pay attorney fees and be available for legal advice and pre-petition planning. During this time, you can set up a weekly, bi-weekly, or monthly payment plan. Once you have provided The Debt Doctors with the full balance of your attorneys’ fees, filing fees, costs, and all requested information, we will prepare your petition and file your case.

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Pittsburgh, PA 15232

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