FAQs

BANKRUPTCY FAQS

Facing questions about bankruptcy, credit concerns, or financial relief is completely normal and all too common — and getting clear, straightforward answers can make a difficult process much less overwhelming. At the Law Office of Carl M. Barto, we have extensive experience helping individuals and families in Laredo, TX and the surrounding communities understand their options under the Bankruptcy Code. This FAQ section is designed to provide helpful, easy-to-follow explanations of the questions we hear most often from clients, including how bankruptcy works, what exemptions may apply, and what the filing process looks like. Our goal is to be a valuable resource that puts your mind at ease, empowers you with knowledge, and helps you feel more confident as you take steps toward financial stability and a fresh start. If you don’t see the answer you need here, our team of knowledgeable bankruptcy attorneys is always ready to assist you directly.

  • Will I lose my car?

    There are several options when it comes to what happens with your vehicle when you file for bankruptcy. You can give up ownership of your vehicle to your creditors, you can continue to pay your loan at the current payment, or you can restructure the loan to get a lower monthly payment.

  • How long does bankruptcy affect your credit score?

    Filing for bankruptcy will cause your credit score to drop. However, that change will not last forever if you practice good financial habits and work to rebuild your credit score. The bankruptcy will not stay on your record forever either. Chapter 13 will be on your record for 7 years, and Chapter 7 will stay on your record for 10 years.

  • Will the debt collectors stop calling after I file for bankruptcy?

    Yes, when you file for bankruptcy, there is an automatic stay against any creditors contacting you about payment. This is one of the benefits of filing for bankruptcy.

  • Will I lose my house?

    When you file for bankruptcy, there are assets that are designated as exempt assets. These include your home and vehicle. That means you will not lose your home or vehicle if an agreement can be reached for a new payment plan for your mortgage or if you pay for your non-exempt equity in the home.

  • Who qualifies for Chapter 7 bankruptcy?

    To qualify for Chapter 7 bankruptcy, you must be an individual, partnership, corporation, or any other business entity. You must also qualify under the means test, which is a test that determines if your monthly income is above or below the state’s median monthly income.

  • Do I have to go to court?

    Most people who file for bankruptcy never set foot in a courtroom or see a judge. In most cases, you will only go to the courthouse to file your bankruptcy papers, but sometimes even your attorney can do this for you. You will have to attend a meeting with your creditors, but that will not be in court either.

CONTACT OUR BANKRUPTCY ATTORNEY TODAY!

At the Law Office of Carl M. Barto, we help individuals and businesses file for bankruptcy. We can help you through the entire bankruptcy process. It does not matter if you are trying to file for Chapter 7 or Chapter 13 bankruptcy. Our attorney will do everything to protect your rights and get your financial health back on track. Contact us today to schedule your initial consultation!