Bankruptcy FAQ

Did you know?

You do not have to be behind on any of your payments to file a bankruptcy case.

Past due taxes can be paid though the bankruptcy court.

Some past due taxes can be discharged in bankruptcy.

I filed a bankruptcy before, can I file again?

If you filed a Chapter 7 bankruptcy, you are not eligible to file another Chapter 7 bankruptcy and receive another Chapter 7 discharge for eight years. You can almost always file a Chapter 13 bankruptcy regardless of whether you had previous cases.

I have been sued, have a judgment against me, or am being garnished. Can I still file a bankruptcy?

You can file bankruptcy at any stage of proceedings against you.

My house is in foreclosure. What can I do?
If you want to keep the house and you can afford to resume making the regular payments and can pay extra toward the missed payments, you can keep your house by filing a Chapter 13 bankruptcy. You will need to catch up the arrearage in five years or less. Your bankruptcy will also have to provide for all of your other creditors but sometimes they don’t all have to be paid in full.

I have not filed all of my tax returns can I still file for bankruptcy?
To be eligible for bankruptcy, you have to have filed you income tax returns for the previous four years. Also, any old taxes for which the returns were not filed will not be discharged in bankruptcy.

I owe old taxes. Can they be discharged in bankruptcy.
That depends on the type of taxes. Sales taxes and withholding taxes can never be discharged. Income taxes can generally be discharged if the tax period was over three years ago, the returns were filed over two years ago, and the taxes were assessed over eight months before filing.

I owe taxes that are not dischargable, what can I do?

You can file a Chapter 13 bankruptcy and get five years to pay the taxes.

I owe student loans. Can they be discharged in bankruptcy.

No. The student loans can be paid in a Chapter 13, but they can’t be discharged in Chapter 7 unless you are so disabled that it is irrelevant whether or not they are discharged.

Is it moral to file for bankruptcy?

The Bible says not to sue the brethren. It also says to pay your debts. The Bible says all have sinned and fall short of the glory of God. The Bible talks about God forgiving our debts as we forgive our debtors. Bankruptcy should always be a last resort. After a Chapter 7 bankruptcy case is over, you can pay any debts that you are able to pay. Chapter 13 is a good device to pay debts over time that you cannot pay when they become due.

I owe back due child support. Can it be discharged in bankruptcy?
No. It can be paid in a Chapter 13, but usually you can work out payment terms with the support enforcement authority so that this is not necessary.

I have pay day loans. Can they be discharged in bankruptcy?

Yes.You may need to stop payment on the checks.

I wrote bad checks and am being prosecuted. Can I file bankruptcy?

Filing for bankruptcy will not stop the D.A. from prosecuting you for writing bad checks.

What will filing bankruptcy do to my credit rating?

The bankruptcy will be on your credit report for ten years. Eventually your credit will get better.

If you have any more questions or would like to setup an appointment to speak with Mr. Williams, please call us at 337-494-1023 or send an E-mail to

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