The FAQ'S of Bankruptcy

Frequently Asked Questions

Payment Plans Available for Chapter 7 and Chapter 13!

Below are answers to common questions relating to bankruptcy. If you have any additional questions or would like more detail on anything below, please contact us.

Why Choose Us

  • Work directly with a lawyer instead of a legal assistant.

  • We take the headache and hard work out of bankruptcy and foreclosure by being supportive, caring, and knowledgeable.

  • Personalized, friendly service.

  • Payment plans available.

  • Free case evaluation (attorney will spend time over the phone and give you detailed information relevant to your situation and determine if bankruptcy is a viable option for you and schedule a free in office consultation).

  • Over 40 years combined experience in helping individuals wipe out debt and get a fresh start.

What Is the Difference Between Chapter 7 & Chapter 13 Bankruptcy?

Chapter 7 Bankruptcy:You ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors.

Chapter 13 Bankruptcy: You file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own. Determining which is right for you is a consideration to be discussed with your bankruptcy attorney.

Who Files for Bankruptcy?

The following are some surprising statistics from a recent major study of bankruptcy debtors:

  • Age 38

  • 44% of all bankruptcy filings.

  • 30% are women

  • 26% are men.Most bankruptcy filers are slightly better educated than the general population.

  • 2 out of 3 bankruptcy filers have lost their jobs.

  • 50% of all bankruptcy filers have experienced serious health problems.

  • 91% of bankruptcy filers have suffered a job loss, medical crisis or divorce.

  • 40% of bankruptcies are a result of medical crises, unemployment or divorce.

  • 90% of filers have two car payments, a house payment and an average of $2,500 in credit card debt.

  • 10% of filers were delinquent only 5–29 days prior to bankruptcy.

What Happens if I Just Ignore My Debts & Hope They Go Away?

When we were children, we often pretended that when we closed our eyes, it would make all bad things go away. Unfortunately, many adults choose to adopt that thinking and as a result, they get in some really bad situations.

Ignoring your credit card obligations will cause creditors to harass you via phone calls and letters from credit card companies, collection agencies and ultimately, law firms, all of whom are experts at harassment. If you ignore them, it will only make matters much worse. In fact, you can and probably will be sued by ignoring your debts. If you lose (and you will unless there’s a viable reason you didn’t pay your debts), the result is a judgment which may include penalties, interest, court fees and attorney fees. With a judgment, the creditor can collect from your wages, your property and your bank account.

Bankruptcy can stop harassing phone calls and letters. It will prevent you from all lawsuits. It even stops collection actions from judgment creditors.

What if I Prefer to Pay Certain Creditors Only?

A preference payment is a transfer of money by a debtor on an account of a pre-existing debt that is made while the debtor is insolvent. This type of payment gives the creditor more than it would receive from the debtor’s assets during a Chapter 7 bankruptcy. In other words, the debtor chooses to pay certain creditors and not others. Preference payments are considered unjust by the system and if the transaction takes place within 90 days of the bankruptcy, the bankruptcy trustee can demand recovery of the money from the creditor for equal distribution to all creditors. If the payment is made to a relative, business partner or other party who has a special relationship with a debtor, the trustee can sue the party for recovery of the payment.

When filing for bankruptcy, do not withhold any information on payments from your attorney. Also, consult with your attorney before paying any creditors.

What Property Might I Lose if I File for Bankruptcy?

You lose no property in Chapter 13, because you fund your repayment plan through your income. In Chapter 7, you select property you are eligible to keep from either a list of state exemptions or exemptions provided in the federal Bankruptcy Code.

Although state exemption laws differ, they typically allow you to keep some types of property review the examples below:

  • Equity in your home, called a homestead exemption. Under the Bankruptcy Code, you can exempt certain amounts of equity. Some states have no homestead exemption; others allow debtors to protect all or most of the equity in their home.

  • Insurance. You may get to keep the cash value of your insurance policies.

  • Retirement plans. Pensions which may qualify under the Employee Retirement Income Security Act (ERISA) are typically protected in bankruptcy. So are many other retirement benefits.

  • Personal property. You'll be able to keep most household goods, furniture, furnishings, clothing (other than furs), appliances, books and musical instruments. You may be able to keep jewelry only worth up to a certain value. Most states let you keep a vehicle if it exceeds a certain amount of equity

Please contact the Law Office of Truman Coe to discuss in detail what property is exempt.

Do I Need to Use Credit to Rebuild Credit?

YES. Reestablishing a new positive credit profile is the only way to turn an otherwise poor credit rating around. Rebuilding credit can be done two ways:

  • Installment Loans — These loans will help you rebuild your credit quickly. For example, if you get an installment loan to buy a car, use a subprime lender and pay your bills promptly. Additionally, make sure the lender reports these prompt payments to the credit bureaus. Paying your mortgage on time will also help you rebuild your good credit.

  • Revolving Accounts — These are primarily credit cards. After your bankruptcy, you will be offered accounts. Open one or two and make sure you pay the bills on time. Use these credit cards wisely and do not run up the entire amount of your limit. There are also secured credit cards that provide you the amount you deposit at the issuing bank of the card.

How Long Does it Take to Rebuild Credit?

It can take usually about 2 years, however, remember each case is different and depends how well you follow the advice you are given.

How Do I Reestablish My Credit?

After you've cleaned up your credit report, the key to rebuilding credit is to get positive information into your record. One way to help you repair your credit is if your credit report is missing accounts you pay on time, send the credit bureaus a recent account statement and copies of canceled checks showing your payment history. Ask that these be added to your report. The credit bureau doesn't have to add this information, but often will. Also, creditors like to see evidence of stability, so if any of the following information is not in your report, send it to the bureaus and ask that it be added:

  • Current & Previous employment (especially if you've been at your current job fewer than two years)

  • Current residence & telephone number (especially if it's unlisted)

  • Date of birth

  • Checking account number

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420 Throckmorton St.,

Ste 200,

Fort Worth, TX 76102

Phone. 817-870-1960

The Law Office of Truman Coe

13727 Noel Road Tower II,

Ste 200,

Dallas, TX 75240

Phone. 214-688-1393


1341 W Mockingbird Lane,

Ste 600,

Dallas, TX 75247