Dallas / Fort Worth Bankruptcy FAQ  

Bill collectors call me all the time and my bank is about to foreclose on my house.  Is there anything I can do to stop this from happening?

            If you qualify for bankruptcy protection an “automatic stay” takes effect as soon as your attorney files your bankruptcy petition with the court.  The automatic stay is a court order that prevents bill collectors from trying to collect anything from you, stops any foreclosure from taking place, and suspends most lawsuits against you.

Are there any exceptions to the automatic stay?

            The bankruptcy automatic stay does not stop proceedings such as criminal prosecutions, paternity suits, or tax audits.  Also, the automatic stay may be limited in some situations for people who have previously filed bankruptcy.

How do I "qualify" to file bankruptcy?

            There are no simple rules about who "qualifies" or not for bankruptcy.  Figuring out whether you qualify for bankruptcy can be a very complex task.  This is especially true because the bankruptcy rules here in the Dallas / Fort Worth Texas area can be very different than other parts of the country.  Your attorney will review your personal situation and can give you an opinion.  However, the following are good indicators that bankruptcy may be a good option for you: 

1)  You have a lot of credit-card debt or medical bills relative to your income.

2)  You consistently come up short each month because you have so many bills.

3)  The total value of everything you own is significantly less than the total amount of debt you owe.

4)  You are harassed by collection agency calls and letters.

5)  You have a large court judgment against you.

There are also many other factors that influence whether bankruptcy is right for you.  Your attorney can guide you through this and help you decide what options you have.

Do I need a lawyer to declare bankruptcy?

            You may represent yourself, but hiring a competent bankruptcy attorney has many advantages.  If you represent yourself you must prepare your own petition, schedules, and statements.  These documents are commonly 30 to 50 pages long.  You may have to take time off from work and travel to the courthouse and file your case.  You will still have to pay the court filing fee.  You must learn the relevant sections of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the local Fort Worth bankruptcy rules, and all the state laws that may affect your bankruptcy case.  You will be held to the same standard as an attorney as there are no separate set of rules for people representing themselves.

           You may also be required to review reaffirmation agreements, send out notices to all parties entitled to notice in your case, make amendments to your pleadings, deal with creditors and their attorneys, deal directly with the trustee, respond to motions made by other attorneys and creditors, and represent yourself in front of the bankruptcy judge. 

           Bankruptcy is an extremely complicated area of law and even minor mistakes can have huge consequences.  (Click here to see some of the courses The Law Offices of John Saitis attends to keep current on the law.)  Hiring an attorney to represent you in your bankruptcy will save you hours of work and worry.  It could also save you tens-of-thousands of dollars in costly mistakes you might make representing yourself.         

I'm considering filing bankruptcy because I'm having financial problems.  Given these problems, how can I afford a bankruptcy attorney?

             There are many ways to afford the services of a competent bankruptcy attorney.  Since you are declaring bankruptcy, you may be able to stop paying bills that will go away after the bankruptcy.  Many people use the money that would have gone to pay these bills to pay their bankruptcy lawyer.  You may also sell property that you own or withdraw funds from a retirement account.  Friends and family may lend or give you the money you need.  Tax refunds can also be a good source of funds.  In short, there are many ways to come up with the legal fees.  Click here for more ideas.   While it may be a bit difficult given your financial situation, you will find that the money is well spent.  Bankruptcy law is very complicated and having an attorney guide you through it can be invaluable. 

Can I pay my bankruptcy attorney's fees with a credit card?

             Unfortunately, you cannot pay your bankruptcy attorney's fees with a credit card.  Since your credit-card debt will be forgiven through your bankruptcy, using a credit card to pay your attorney could be considered fraud.  However, we are able to accept credit cards from friends and family members who are willing to help you.

Can I pay my bankruptcy attorney's fees on a payment plan?

             Yes.  In a Chapter 7 bankruptcy we can put you on a payment plan that will fit your budget, but we are not allowed to file your case until all payments have been made.  Recent U.S. Supreme Court rulings make it illegal for bankruptcy lawyers to accept payments from you after your case is filed in a Chapter 7 bankruptcy.  In a Chapter 13 bankruptcy you pay a certain amount up front and the balance is paid through the bankruptcy-court repayment plan.

What are the alternatives to bankruptcy?

            Depending on your financial situation, negotiating with your creditors may be a better option than bankruptcy.  Whether this is appropriate for you depends on the number of debts you have, the total amount of the debt, and whether there is any question that you actually owe the debt.  Negotiation can be a powerful way to resolve your financial problems, but it can often be much more expensive than bankruptcy.

How will bankruptcy affect my children?

            Generally, bankruptcy will greatly benefit your children.  It can allow you to start saving money for college instead of paying high-interest credit cards.  It removes the stress of bills from your family life.  Bankruptcy can give you enough cushion in your budget so you don't have to choose between electricity and food.

I am self-employed.  How does that affect my bankruptcy?

            The answer depends on whether your business is a sole proprietorship, a partnership, a corporation, a limited liability company, or other legal entity.  If your business is a separate legal entity you may need to file two bankruptcies, one for you and one for your business.  Being self-employed does not "disqualify" you from bankruptcy, but it can add to the complexity of your case.  If this situation applies to you, your lawyer will be able to advise you on the best options available to you. 

What debts are not eliminated by bankruptcy?

            Child support, most student loans, criminal fines, and recent taxes are common examples of debts that are not eliminated in bankruptcy.  

Will I have to go to court?

            In most bankruptcies in the Dallas / Fort Worth Texas area, debtors represented by a lawyer do not go to court.  If you represent yourself it is much more likely you will have to go to court.

What is a creditor meeting?

            A creditor meeting is an opportunity for your creditors or their lawyer to ask you questions and gather information concerning your bankruptcy and debts.  Despite being called a "creditor" meeting, usually no creditors attend these meetings and the meetings last only a few minutes.

What do I need to bring to my creditor meeting?

            You must bring your driver's license (or other government-issued picture identification) and your Social-Security card.  You will not be allowed to attend the meeting without these documents.  Your lawyer may also ask you to bring additional documents in certain cases.  In Fort Worth, the creditor meetings are held at the Lanham Federal Building in downtown Fort Worth.

What happens if a creditor shows up at my creditor meeting?

             There is nothing to be afraid of if a creditor or their lawyer attends your meeting.  All they can do is ask you questions.  Your attorney will not allow them to be abusive or in any way harass you at the meeting.  Simply answer their questions honestly and the meeting will go smoothly.

What should I wear to my creditor meeting and my initial office visit?

             Wearing your normal street clothes is acceptable.  There is no need to wear a suit or other business attire.  Most clients wear jeans or khakis and a t-shirt or polo shirt.

What is a trustee?

             A trustee is a person "in charge" of administering your bankruptcy case.  They are not the bankruptcy judge and do not make final decisions about your case.  The trustee is usually a local bankruptcy lawyer.  Some of the trustee's duties include "running" your creditor meetings and reviewing your petition and schedules.

Will I lose my house?

            If your house is paid off, you can still keep it in almost all cases.  If you are still paying on your house, as long as the payments are current and future payments are made on time you should not lose your house in a Chapter 7 bankruptcy.  A Chapter 13 bankruptcy will allow you to make up missed back payments and still keep your house. 

Will I lose my car?

            For most people living in the Dallas / Fort Worth Texas area, as long as you are current on your payments and continue to make on-time future payments you will not lose your car in a Chapter 7 bankruptcy.  A Chapter 13 bankruptcy will allow you to make up missed back payments and still keep your car.

I have a car in my name, but my sister/cousin/aunt/etc. drives the car and makes the payments.  What will happen to that car if I file bankruptcy?

            You can choose to surrender (give back) the car.  You can also choose to reaffirm the car loan.  This mean you will continue to be legally responsible for the car payments despite filing for bankruptcy.  This means the loan continues as if the bankruptcy had not taken place as far as the car is concerned.  You can also purchase the car for its current value (blue-book value) instead of the loan balance still owed.  However, this payment must usually be paid in a lump sum.  Which choice is right for you will depend a lot on your individual circumstances.  Your lawyer will be able to help you make the right choice. 

Will I lose my personal belongings?

            Most people living in the Dallas / Fort Worth Texas area that file bankruptcy get to keep all of their personal belongings.  Common exceptions to this are very expensive jewelry or collectibles.

Can I exclude from my bankruptcy the debts I intend to pay back?

            No.  The Bankruptcy Code requires you to list all your debts, but you may voluntarily pay back any debt you wish.  A bankruptcy discharge eliminates your obligation to repay a debt, but it does not prevent you from repaying anyone if you choose to do so.

Will my student loans go away after bankruptcy?

            Probably not.  For student loans to be eliminated through bankruptcy you must meet the strict requirement that repaying the loans would constitute an "undue hardship" for you.  Most people cannot meet this requirement. 

I'm married.  Does my spouse have to file with me?

            No.  Married debtors in the Dallas / Fort Worth Texas area are allowed to file bankruptcy alone.

I'm divorced.  How does bankruptcy affect my obligations to my ex-spouse under our divorce decree?

            There is no one answer to this question.  Divorce and bankruptcy issues can be very complex so you should consult your attorney about how your bankruptcy may be affected by your divorce. 

Since my credit card debt is going to be wiped out anyway, can I max out my credit cards before I file?

            No!!  This would be considered bankruptcy fraud and could prevent you from receiving your bankruptcy discharge or land you in jail.

Can I keep at least some of my credit cards?

            This is up to the individual credit-card companies, but as a general rule all your credit cards will be cancelled.  Even those with a zero balance will usually be cancelled.  You may get a credit card again after your bankruptcy is over to help you reestablish credit if you wish.  You can often use debit cards that have a Visa/MasterCard logo on them when you need to rent cars or reserve hotel rooms.

Will bankruptcy ruin my credit?

            Chances are that if you're considering bankruptcy your credit is already in pretty bad shape.  Bankruptcy may actually help your credit situation.  Let's take a look at how a potential creditor might see you before and after a bankruptcy. 

            Before a bankruptcy:  If you currently owe $50,000 in credit card debt, have a modest income, and are behind on your payments, many potential creditors will see you as a poor credit risk.  If they lend you money, you probably won't be able to pay them on time (or at all) because you have so much other debt. 

            After a bankruptcy:  You currently owe $0 in credit card debt, have a modest income, and are not behind on your payments since you have no debt.  If a potential creditor lends you money they know that you don’t have other debts and have the ability to repay their loan.

That makes sense, but I've heard that a bankruptcy ruins your credit for 10 years.  Is that true?

             The fact you filed bankruptcy can remain on your credit report for 10 years.  That is not the same thing as your credit being "ruined" for 10 years.  Your credit after bankruptcy has a lot to do with how responsibly you use your “fresh start” rather than any hard-and-fast rules about how a bankruptcy will look on your credit report.  If you are responsible with your finances after your bankruptcy you can rebuild your credit in as little as two years.

How long does it take to file my bankruptcy?

             It normally takes about two weeks to get all the paperwork in order and file your bankruptcy with the court.  This can vary when it takes a client longer to get us the required information or paperwork.  Sometimes, it is wise to wait longer before filing bankruptcy.  This is something your attorney will discuss with you.

Once my case is filed how long does the bankruptcy process last?

             A Chapter 7 bankruptcy in the Dallas / Fort Worth Texas area takes about 4 to 5 months from the time you file.  A Chapter 13 bankruptcy in the Dallas / Fort Worth Texas area takes about 3 to 5 years.

I'm having financial troubles, but I'm several months away from "having" to file bankruptcy.  Why can't I just wait until things get worse before speaking to an attorney?

             Waiting until the last minute before seeking help may cost you thousands of dollars.  Example:  You get a $40,000 home-equity loan to "consolidate your bills" and pay off your credit cards.  You then have trouble paying both your mortgage and your home-equity loan.  If you file bankruptcy now you will probably have to repay every penny of that $40,000 or lose your house.  The credit card debt, however, could have been completely eliminated in bankruptcy.  Speaking with an attorney earlier in the process could have saved you $40,000!!  This exact situation may not apply to you, but speaking with an attorney as soon as you suspect you're in trouble will let you make informed decisions and could save you enormous amounts of money.

Can I be fired because I am declaring bankruptcy?

             Federal law prohibits an employer from firing you solely because of a bankruptcy.

What geographic areas do you serve?

             Our clients typically come from one of the areas listed below, but we have helped clients from as far away as Florida, California, and even Hawaii.  If you are unsure about whether we would be able to help you effectively because of where you live feel free to give us a call and we would be happy to discuss the situation with you.  Typical Areas Served:

Addison, Aledo, Annetta, Argyle, Arlington, Azle, Bartonville, Bedford, Benbrook, Blue Mound, Briar Oaks, Burleson, Carrollton, Cedar Hill, Colleyville, Coppell, Copper Canyon, Corinth, Corral City, Cross Roads, Crowley, Dallas, Dallas County, Dalworthington Gardens, Desoto, Double Oak, Duncanville, Edgecliff Village, Euless, Everman, Farmers Branch, Flower Mound, Forest Hill, Fort Worth, Garland, Grand Prairie, Grapevine, Haltom City, Haslet, Hickory Creek, Highland Park, Highland Village, Hudson Oaks, Hurst, Irving, Keller, Kennedale, Krum, Lake Dallas, Lake Worth, Lakeside, Lakewood Village, Las Colinas, Lewisville, Lincoln Park, Mansfield, Marshall Creek, Mesquite, Newark, North Richland Hills, Northlake, Oak Point, Pantego, Pelican Bay, Plano, Reno, Richland Hills, River Oaks, Roanoke, Saginaw, Sanctuary, Sansom Park, Shady Shores, Southlake, Tarrant County, Trophy Club, University Park, Watauga, Weatherford, Westlake, Westover Hills, Westworth Village, White Settlement, and Willow Park.

What types of bankruptcy clients has the Law Offices of John Saitis represented in the past?

            We have represented a wide variety of clients from all walks of life.  Some of our clients have included grade-school teachers, senior citizens, recent college graduates, hearing impaired clients, loan brokers, brain surgeons, military families, single moms, day care operators, chiropractors, CEOs, telephone companies, mortgage loan companies, truckers, private investigators, car dealerships, preachers, jewelry store owners, handymen, and insurance agents to name just a few.  We've even handled bankruptcies for other attorneys who do not specialize in bankruptcy law but needed to declare bankruptcy.  Click here to see what some of these clients had to say about us.   

Will my friends, family, or employer find out about my bankruptcy?

            Your bankruptcy filing will be a matter of public record, but generally only you, your creditors, and those people you choose to tell will know about your bankruptcy.

Why should I choose the Law Offices of John Saitis to help me with my bankruptcy?

             We use the latest technology available and file your bankruptcy case electronically with the court.  We also receive all court notices electronically.  This helps us respond quickly to any developments in your case.

             We are not a high-volume filer that moves hundreds of bankruptcy clients through the door every month.  We will never treat you as a number and you will receive as much "hand holding" as you need to feel comfortable. 

             We will make sure all your questions are answered.  You will meet directly with a bankruptcy attorney, not a paralegal or secretary.  In short, we will provide you with the type of service you deserve.  But don't just take our word for it, click here to see what actual clients have to say about us.

             Click here for more reasons to choose us for your bankruptcy needs. 

Are you the best bankruptcy attorney for my situation?

             We are by no means the only competent bankruptcy law firm in town.  We do, however, believe that we deliver something extra to our clients.  We do not just focus on the legal aspects of your case, but we also understand that this is a difficult time for you emotionally and we do all we can to make your experience as painless as possible.  You are not just a number to us, but a human being that deserves respect, compassion, and understanding. 

I think bankruptcy may be right for me.  What do I do next?

             Call us at (817) 881-4529.  We will ask you a series of questions designed to determine if bankruptcy might be a good option for you.  We will then set up an appointment with an attorney so that you can get the bankruptcy process started and get on your way to your new financial life.  To make your appointment go smoothly we ask that you use our Bankruptcy Toolkit and bring the items listed with you.