Questions & Answers about Bankruptcy

How will Chapter 7 Bankruptcy help me?


Chapter 7 is referred to as a “ fresh start” or “clean slate” because it allows you to discharge or wipe-out unsecured debts, such as medical bills, credit cards and some older tax obligations. However, some debts are not dischargeable. These debts include things such as student loans, child support, and recent tax obligations. Read more here


My creditors are calling me. Will bankruptcy stop them?


Yes, immediately upon filing your bankruptcy petition with the courts, creditors are prohibited from contacting you. They may only contact us. In addition, bankruptcy halts repossessions and foreclosures and puts an end to lawsuits and wage garnishments


Can you save my home from a foreclosure sale?

Yes. A foreclosure sale can be stopped at any time before the sale has taken place.

Am I able to keep my assets in Chapter 7 Bankruptcy?


Am I able to keep my assets in Chapter 7 Bankruptcy? Yes. Most clients of Pratt & Maegli Law Firm keep all of their assets. Also, if you have a debt that is secured by an asset, such as a home or car, you may be able to “reaffirm” this debt and retain ownership of the asset. Alternatively, you may choose to surrender the asset. If you surrender it, then you wipe out the debt associated with that asset.


Can I keep my car, home and other possessions after filing Bankruptcy?

Can I keep my car, home and other possessions after filing Bankruptcy? Yes, we design a plan that allows most of our clients keep all of their property in both Chapter 7 and Chapter 13 bankruptcy. If your home has a mortgage against it then you must begin paying your regular monthly payments in order to keep the house. In a Chapter 13 bankruptcy your past due balances will be part of your repayment plan which is spread out over a three to five year period.

Will bankruptcy help me get my car back after it has been repossessed?


Yes. After your car has been repossessed you have 10 days to file bankruptcy. We can get your car back during this 10 day period.


What is a Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy is for people who have some sort of income which will allow them to pay off debt. It consolidates your debts and gives you one monthly payment to make each month over a three to five year period. Your Chapter 13 payment amount is determined by your income and expenses.

Do new Bankruptcy laws make it tougher to file Bankruptcy?

The new laws are designed to diminish the number of people who are eligible for Chapter 7 Bankruptcy. Qualifying for Chapter 7 Bankruptcy depends on a complex series of calculations that examines your expenses and your income. However, the new bankruptcy laws are open to interpretation. If someone has told you that you do not qualify, please call us for a second opinion. Remember, your initial consultation is free!

Will my credit score improve after bankruptcy?

Generally speaking, YES. At the time you file bankruptcy, your credit score is usually as low as it will go. A discharge under Chapter 7 or Chapter 13 is the first step to re-establish a good credit score. Your credit score will begin to improve sooner than you think. Many people qualify for car loans, home loans, and credit cards soon after filing.

How is child support handled in Bankruptcy?

Child support is considered a “priority debt” and is not dischargeable in bankruptcy. However, in a Chapter 13 bankruptcy past due child support can be included in the payment plan and consolidated with your debts.

Can I buy or sell my home or other things during Bankruptcy?

Yes. However, we may need to obtain court approval depending on what is involved.

How will my IRS debt be handled in Bankruptcy? Will Bankruptcy help me?


Yes. Bankruptcy helps you with money that you owe the IRS. It may even be dischargeable depending on the circumstances. You should speak with an attorney from the Pratt & Maegli Law Firm so that we may give you a more precise answer based upon your particular tax situation.


Do I need credit counseling prior to filing bankruptcy?

Yes. We can easily help you get this done.

What is a bankruptcy mill?

What is a bankruptcy mill? A bankruptcy “mill” is a large law firm that files a lot of cases. These mills are notorious for charging additional fees and delivering poor service. They are similar to factories and you are little more than a file number. At a bankruptcy mill, people often do not receive the personal attention that they need and deserve. The Pratt & Maegli Law Firm is definitely NOT a bankruptcy mill. We treat you with respect and dignity because we take it personally. Our standards are very high and we demand that every member of our staff adhere to these standards.

Do I need to go to court?

Most cases require only 1 appearance. Before your court date, we will talk you about what will happen in court. Also, your attorney from the Pratt & Maegli Law Firm will always be with you at any court appearances.

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5411 E. State Street, Suite 202
Rockford, IL 61108

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The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Disclaimer: The Pratt & Maegli Law Firm, P.C. is a Debt Relief law firm as defined by 11 U.S.C. 528. We help people file for Bankruptcy Relief under the Bankruptcy Code. We do not guarantee any result and prior results do not guarantee a similar outcome. This is an attorney advertisement and this website is for informational purposes only.