Frequently asked questions

Faqs on bankruptcy, foreclosure, debt, credit, repossession, wage garnishment, and other financial difficulties.

Does your office offer a free consultation with an attorney?

Yes. Your first consultation is completely free. If you are experiencing financial difficulty and would like to find out about your options, contact our San Antonio, Texas law office.

If I file for bankruptcy will I be forced to wait 7–10 years before I can obtain credit again?

This is a very common question. Bankruptcy will remain on your credit report for seven to ten years. However, this does not mean that you must wait 7-10 years after filing bankruptcy to obtain credit. Depending on your employment, your income, and your ability to repay, you may be offered credit by some auto loan companies and credit card companies shortly after your bankruptcy is discharged (typically 3-5 months after filing bankruptcy). In addition, many people are able to obtain mortgages 2-3 years after their bankruptcy discharge.

Will I have a better credit rating if I work with a debt consolidation company or a credit counselor instead of filing for bankruptcy?

You will probably find that debt consolidation will do very little to improve your credit. Many people try for years to repay their debt through debt consolidation and end up making little or no progress in reducing their debt or repairing their credit. In addition, during the time (usually over a period of several years) that you are making payments to a debt consolidation company, your credit report will still reflect that you owe money to your creditors.

I am behind on my car payments and I'm afraid that my car will get repossessed. Will filing bankruptcy help me keep my car?

Filing for bankruptcy automatically protects your vehicle. Many individuals file for bankruptcy to avoid losing their vehicle. Many are surprised to learn they may also be able to re-write their car loan by filing bankruptcy. Re-writing the car loan reduces the principal balance, interest rate, and monthly payment. Contact our office for more information about this.

Most of my debts are medical bills. I feel like there is no way I can repay them. Can medical bills be included in a bankruptcy?

Medical bills are dischargeable in a bankruptcy. The inability to repay medical bills is one of the most common reasons that individuals and families file for bankruptcy.

I just received a notice that my wages are going to be garnished. Is it too late for me to file bankruptcy?

No, it is not too late. Filing bankruptcy (Chapter 7 or Chapter 13) immediately stops all collection activity including wage garnishment.

I am behind on my mortgage payments and I have received notice that my home is scheduled for Sheriff's Sale. Is there anything that I can do to stop the foreclosure?

There may be. You should immediately call our San Antonio, Texas office and schedule an appointment for a consultation with an attorney. This appointment will not cost you anything and the attorney will be able to look at your situation and recommend a course of action.

Can I be fired from my job if I file bankruptcy?

Federal law prohibits an employer from discriminating against you because you filed bankruptcy.

What does it cost to file for bankruptcy with Vanlaws?

Without evaluating your individual case, it is difficult to quote an exact fee because the fees vary depending upon the complexity of the case. During your free consultation with a bankruptcy attorney in our San Antonio law office, the attorney will evaluate your case and will then be able to tell you the fees for your bankruptcy case.

How can I stop the constant phone calls and letters from creditors?

When you file for bankruptcy, your creditors will be notified by the court. Under federal bankruptcy law, creditors must stop calling you and sending you collection letters after they are notified of the bankruptcy filing. If you are contacted by a creditor after you have filed for bankruptcy, you should refer the creditor to your bankruptcy attorney. Most people are surprised at how quickly the creditors stop calling.

If I file Bankruptcy, will I have to give up my car or home and/or will my car loan or mortgage be negatively affected?

No. While Bankruptcy law requires that you merely list you all the debts you owe on the date you file, so long as you continue to pay your vehicle/home loan, or make some arrangement to pay a modified payment that better suits your current financial situation, you will be able to keep your car, home or other necessary collateral.

If I file a Chapter 7 liquidation bankruptcy, does that mean that the Chapter 7 Trustee must liquidate my property?

No. Most Texas Chapter 7 filers do not own the type of property that is subject to liquidation—e.g. more homes than the one they live in, more cars than the one they drive, oil, gas or mineral interests worth a substantial amount of money, businesses with substantial equity in them, stock/bonds/brokerage accounts with a substantial value and that are not part of a retirement account. For most Texas residents, their home, cars, furniture, appliances, retirement accounts and even money that they have in their bank accounts will be protected from a Chapter 7 Trustee and/or their unsecured creditors if they file for Chapter 7 protection.

Do I have to pay back all of my unsecured creditors in a Chapter 13 repayment plan, regardless of my ability to pay and the amount I owe?

No. A Chapter 13 repayment plan is not the same as a debt consolidation; and thus, in most Chapter 13 cases debtors are only required to contribute their disposable income (income over and above that which is needed to cover their family's reasonable and necessary living expenses) to their unsecured creditors—credit cards, personal loans, prior repo/foreclosure deficiencies, payday loans, medical bills, etc—for a fixed amount of time that will range between 3 to 5 years. Keep in mind that Chapter 13 is still a bankruptcy and that the part of any dischargeable debts that are not paid off are still discharged just as they would be in a Chapter 7.