General FAQ

General FAQ's


How do I know if I should file for bankruptcy?

There are many situations where bankruptcy may be best option available to save your assets or prevent you from being in debt for many years. A few of the more common situations where bankruptcy is an appropriate option are listed below. Of course, each person, and his or her specific situation, is unique. You should consult with an attorney at The Carmichael Firm to discuss all of your options and alternatives. 

Will bankruptcy stop a lawsuit against me? 

If you are being sued, bankruptcy may be a better and cheaper way to deal with the lawsuit. In fact, you may have options before the lawsuit is finished that will not exist after the lawsuit goes to judgment. We strongly urge you to speak with an attorney at The Carmichael Firm about filing a bankruptcy before any judgment is entered against you. In most cases, a bankruptcy filing will stop a lawsuit immediately and will prevent your creditors from placing a lien against your house or garnishing your wages. 

Will bankruptcy stop foreclosure on my home and/or my stop the repossession of my car? 

Bankruptcy can stop foreclosure on your house or a repossession of your car. In most cases, an "automatic stay" arises by law the instant a bankruptcy is filed. The "automatic stay" stops the foreclosure process and prevents any collection actions, such as repossessions or garnishments. Bankruptcy may also allow you to consolidate your mortgage arrears or automobile balance and make payments on those debts over time. In a Chapter 13, the attorneys at The Carmichael Firm will design a repayment plan for you, with your help. 

I can only afford the minimum monthly payment on my credit cards and my balance keeps increasing. 
Can bankruptcy help me? 

If you are only paying the minimum required payment on your credit card bills each month (generally about 2% of the outstanding balance), and the interest rate is 20%, it will take you 15-20 years to pay off a $10,000 debt. Do you really want to be in this same financial situation in 20 years? Filing a bankruptcy with The Carmichael Firm will discharge these debts and allow you to get a fresh start and get on with living your life. 
Bankruptcy FAQ's
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