Bankruptcy Questions and Answers, Easy Explanation from Attorney

The means test is a bankruptcy law requirement that looks at your income for the six months prior to filing and affects your eligibility.

The median income is a statistic reported by the Census Bureau which is used for comparison in the means test for bankruptcy. A measurement of household income.

Chapter 7 procedures to keep property by paying payments after filing or paying one lump sum.

The amount of your chapter 13 plan payment depends on what you are attempting to accomplish over the term of your plan (36-60 months). Income and expenses is a factor.

The bankruptcy trustee represents your creditors and gets a commission on money distributed to your creditors.

Probably not. The Trustee has rights, and so do creditors, but rarely do they need to inspect personal property.

Maybe. If you owe the bank where you deposit your money, you should change banks. In some cases, it's mandatory.

Probably not. If you owe for it, you'll eventually have to pay to keep it. Most people don't lose any property.

No. Only arrestable offenses involving payments are tax evasion, willful neglect of support obligations, failure to pay fines and court costs. Otherwise, it's not a crime to fail to pay.

Yes. Creditors may object to your discharge, usually on grounds of false statements, bad intentions, dirty trcks. Falsifying credit application is a crime.

Not legally. If creditor contacts you after case is filed, it violates federal bankruptcy court order. Some contact by mistake is to be expected.

Yes, unless you file the bankruptcy after the eviction is completed in court. Timing is exactly stated, you can be too late.

Yes. Giving notice that you filed a bankruptcy case makes it illegal for creditor to take further action without getting permission first.

No. Filing bankruptcy prohibits other courts from continuing with cases involving your money or propety (except domestic support and criminal cases).

It all stops as of the date and time of filing the bankruptcy case. If you wait too long, it could affect whether debt is discharged.

Probably not. If you owe any money on the acccount, it is a debt you must disclose and it will be effected (cancelled), even if the balance is zero.