Commonly Asked Questions Regarding Chapter 7 Bankruptcy 1. How much does it cost to file bankruptcy? The court-filing fee for a Chapter 7 case is $200. Legal fees will depend on the complexity of the case, the type of bankruptcy filed and whether the case is contested or uncontested. We will generally quote a fee after meeting with the client and determining what must be done from a legal standpoint. You will find that our fee schedule is very competitive with other attorneys experienced in bankruptcy law. 2. What happens when I file Bankruptcy? As soon as a bankruptcy petition is filed, creditors are automatically stopped from any collection efforts including lawsuits, garnishments and harassment. A few days after the bankruptcy case is filed, the court will send a notice to all creditors, advising them of the bankruptcy filing, and setting a time for the First Meeting of Creditors. In a Chapter 7 Bankruptcy case there is a sixty-day waiting period after the First Meeting of Creditors within which creditors can object to your case. Not long after the sixty-day period elapses, the final order of Bankruptcy Court will be entered officially discharging the debts. A discharge means that the debts are permanently unenforceable and uncollectible. 3. What debts cannot be discharged in bankruptcy? Generally, the following debts are not discharged in bankruptcy, although there are some exceptions: Certain Taxes Debts for fraud, embezzlement or theft Intentional injury to someone Child support or alimony Fines and restitution Student loans Personal injury caused while operating a       motor vehicle while intoxicated. 4. Will I lose my property if I file bankruptcy? Generally, a debtor will not lose any property by filing bankruptcy. There are some exceptions, of course. Certain property, under South Dakota and federal law, is declared exempt and unreachable by creditors, including: $30,000 equity in a homestead $20,000 cash value in life insurance 100% of wearing apparel $6,000 of equity in personal property of any type       if the head of a household and $4,000 if not the head of a        household. Most retirement plans and IRA's Social Security and Workers Compensation benefits One of the attorney’s functions is to help ensure that all or most property is exempt. There are few methods to convert non-exempt property to exempt property and thereby preventing loss of property in bankruptcy. It should be noted that if one becomes entitled to inherit property within six months after filing bankruptcy , the inheritance is potentially subject to the claims of creditors. [Home] [Personal Injury] [Bankruptcy Law] [Bankruptcy FAQs] [Contact Us] 505 West 9th Street Sioux Falls, SD 57104-3603 (605) 336-8980 randy.blakelaw@midconetwork.com