5 Most Common Questions about Bankruptcy

Brooklyn Bankruptcy – Common Questions

 5 most commonly asked bankruptcy questions provided by Ursulova Law Offices.

  1. What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy, also known as a ‘liquidation’ is designed for those persons who will have no way to repay their debts in the future.

Chapter 13 bankruptcy, termed a ‘reorganization’, is for those persons who will have the ability to repay some of the date at a later time. The current debt is reorganized into a payment plan and schedule.

  1. What does filing bankruptcy actually do?

 Once bankruptcy is filed the courts issue an ‘Automatic Stay’ order. This order blocks debt collectors and creditors from pursuing collection actions against you or your property. You are protected against repossessions or foreclosures. The stay is usually in force until the bankruptcy is completed, but some may only be for a period of 30 days or so. Be sure to know the length of the stay for your state.

  1. Can I keep my house if I file Bankruptcy?

Laws will vary from state to state but generally you may be able to keep your home, car, retirement funds and household items. Some states place a value limit on what you can retain so be sure to understand your states rules.

  1. Will filing bankruptcy ruin my Credit?

When you are in debt and cannot make your monthly payments, your credit score is impacted. The filing will stay on your credit report for up to ten years. However, once you file for bankruptcy the damage to your credit stops. So in effect, filing for bankruptcy actually will protect your credit score, not damage it. Creditors know that once filed, you cannot file bankruptcy again for 8 years so in many cases you will begin to receive offers of new credit cards. Accepting these offers responsibly can help you begin to rebuild your credit rating.

  1. How do I go about filing and what does it cost?

Although not required, it is best to hire a bankruptcy lawyer in Brooklyn when filing either a Chapter 7 or Chapter 13 bankruptcy. A Brooklyn bankruptcy can run about $330 for a Chapter 7 filing and around $275 for a Chapter 13.


As mentioned, there are differences in bankruptcy law between states, so it is important to have a Brooklyn bankruptcy attorney represent you. Call Ursulova Law Offices to have them give you the representation you deserve.



Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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