• While only an attorney can give you legal advice, filing bankruptcy is designed to give honest people in financial distress a much-needed "fresh start."
• Not all debts are eliminated in chapter 7 bankruptcy, but you will not have to pay anything for those which are eliminated (discharged).
  
  
• Chapter 7 generally stops all creditor actions against you, but some creditors are only stopped temporarily, for a short period of time.
  
• The typical Chapter 7 case only takes about 4 months from beginning to end.
• Some individuals in financial trouble experience stress that affects mental, emotional and physical health. Financial stress may also affect personal relationships and work performance. Bankruptcy can often provide relief from this stress.
• Many people can get a mortgage or other credit within a year or two of bankruptcy.

• If you are behind on a secured debt such as a mortgage or car loan, Chapter 7 does not provide a sure way for you to "catch up" on these payments to keep the property.
• You may or may not be able to keep all of your property in Chapter 7.
• If you are not completely honest with your attorney or fail to understand all the information you are required to disclose, then Chapter 7 bankruptcy can create more problems rather than solving the ones that you have.
  
  
• Chapter 7 Bankruptcy will stay on your credit report for up to 10 years.
• You will be required to disclose a great deal of financial information, supply documents, and fill out paperwork.
• If you find that bankruptcy is the best choice for you, be aware that it may not be the solution to all your problems.
• There are certain debts that cannot be discharged in Chapter 7 bankruptcy, including child support, certain taxes and most student loans.

• Avoid methods of filing Chapter 7 bankruptcy in which you do not received legal advice from a lawyer. Bankruptcy is a legal proceeding and only an attorney can tell you the law about important issues such as whether your property will be protected. Failure to get advice from an attorney may cause result in you losing property or other unintended results.

• Be cautious of "do-it-yourself" bankruptcy methods such as Internet bankruptcy preparation and "kits" or books that claim to teach you how to file your own bankruptcy.
  
  
• Bankruptcy laws changed in October of 2005, and laws about protecting property often vary from state to state.
• Without proper legal advice, you might lose property unnecessarily or have other unexpected complications.
• Avoid assumptions. Many times the rumors about bankruptcy that you have "heard" are not the truth.

• Look for an attorney that is experienced in bankruptcy.

• Don’t assume that you cannot afford legal advice; many bankruptcy lawyers have methods to assist you in paying their legal fees.

• Be sure you fully understand what is required of you and what you can expect.

Chapter 7 Bankruptcy will be listed on your credit reports for up to 10 years. Hummingbird's Learning Center has free information about rebuilding credit after bankruptcy.

• In chapter 13 bankruptcy, it is possible to stop foreclosures and catch up on delinquent mortgage payments.
• In chapter 13 bankruptcy, it is possible to deal with back taxes that you owe.
• Most of your legal fees will be included in your monthly chapter 13 plan payment so you generally don’t need to come up with large legal fees to file a chapter 13.
  
  
• Chapter 13 is similar to debt consolidation, but because it is under federal law, all of your creditors are required to participate and your unsecured creditors are usually paid less than in a non-bankruptcy debt management plan.

• Chapter 13 bankruptcy stops all creditor actions against you, with some exceptions.
• In chapter 13, you generally get to pay what you can afford to your creditors over time in satisfaction of your debts.
• Some individuals in financial trouble experience stress that affects their mental, emotional and physical health. It may also affect their personal relationships and their work. Bankruptcy can provide relief from this stress in some circumstances.
• Under certain circumstances, it is possible to get a mortgage or other credit while you are in chapter 13.

• In most cases, Chapter 13 requires you to make monthly payments for 3 to 5 years.
  
  
• Your monthly payments will usually include fees to your Chapter 13 attorney and the Chapter 13 Trustee, for the administration of your case.
• You will be required to disclose a great deal of financial information, supply documents, and fill out paperwork.
• If you are not completely honest with your attorney or fail to understand all the information you are required to disclose, then bankruptcy can create more problems rather than solving the ones that you have.
• Chapter 13 bankruptcy can stay on your credit report for 7 to 10 years.
• Chapter 13 bankruptcy normally does not change your payments under mortgage loans. Usually it merely gives you a chance to catch up delinquent payments.
• If you lose your job or your income drops, you may not be able to maintain your chapter 13 payments. If this happens, and your case can be dismissed or, if appropriate, you can change your case to a chapter 7.
• There are certain debts that cannot be eliminated in bankruptcy.

• Avoid methods of filing bankruptcy in which you do not received legal advice from a lawyer. Bankruptcy is a legal filing and only an attorney can tell you the law about important issues such as whether your property will be protected. Failure to get advice from an attorney may cause unpleasant surprises and unintended results.

• Be cautious of "do-it-yourself" bankruptcy methods such as Internet bankruptcy preparation and "kits" or books that claim to teach you how to file your own bankruptcy. Chapter 13 is complicated, bankruptcy laws changed in October of 2005, and laws about protecting property can vary from state to state.
• Without proper legal advice, you might lose property unnecessarily or have other unexpected complications.
  
• Avoid assumptions. Many times what you have "heard" is not the truth.

• Look for an attorney that is experienced in bankruptcy.

• Don’t assume that you cannot afford legal advice. Chapter 13 attorneys usually receive most of their payment over time, though your monthly plan payments.

• Be sure you fully understand what is required of you and what you can expect.

Chapter 13 bankruptcy will be listed on your credit reports for 7 to 10 years. Hummingbird's Learning Center has free information about rebuilding credit after bankruptcy.