Q. What is the automatic stay?
The automatic stay is a statutory injunction that takes effect when a bankruptcy petition is filed. The stay restrains or "stops" creditors from taking action to collect a debt. It is designed to protect the debtor and "property of the estate" that is the bankruptcy clients property, from reach of the clients creditors under non-bankruptcy laws.

How will bankruptcy affect my credit?
If you're considering filing bankruptcy, the chances are you have financial problems that aren't going to go away and that can't be dealt with without professional help. Bankruptcy attorneys can't make the fact that you once had these debt problems disappear, but they can cure the underlying problem of too much debt. Bankruptcy generally improves the credit of someone who is overwhelmed by debt by clearing the slate and making room for more credit

Q. How do I decide which chapter to file
There are a variety of legal and equitable factors that should be considered in choosing a chapter. Personal choice may also play a role in deciding what chapter to file. An experienced bankruptcy lawyer can take a look at your situation and explain how the chapters apply to the specifics of your situation.

Q. Can you be fired or denied employment because you filed for bankruptcy?
The office of Charles Andersen protects your rights. In the extensive number of the cases that we have handled no client has ever been discriminated against in employment or job advancement because of a bankruptcy. Federal Bankruptcy Code has an anti-discrimination provision that is set forth in Section 525 of the Bankruptcy Code which prevents any discriminatory employment practices against those who have filed.

Q. Will bankruptcy stop a lawsuit?
Bankruptcy is Federal Law. Federal law supersedes state law. Even though the lawsuit against you has most probably been instituted in a court in and for the State of New York, the filing of bankruptcy stays the state court lawsuit or judgment from enforcement. When you receive a bankruptcy discharge, the underlying debt is extinguished.

Q. How do I decide when to file for bankruptcy?
Early warning signs of financial problems include, late payments, in house creditor harassment, one or more accounts in collection and others. With professional assistance someone can take a look at your situation and see whether there is any realistic way for you to get back on track with your creditors. This is a question that you should consider early because the path to bankruptcy may be inevitable. Waiting to file what is inevitable or the best solution can result in wasting ten's of thousands of dollars on interest and late fee's and can cause years of delay in your financial rehabilitation.

Q. Can I choose which creditors to file in my bankruptcy?
You may not do so. Bankruptcy Law requires that you treat all creditors evenly and in accordance with certain rules and priorities. You do however have the option to pay any debt you choose after the bankruptcy, and you may even wish to enter into a formal written agreement with the creditor and the bankruptcy court to reaffirm some debts and legal bind you to pay. Reaffirmation is common practice with home and car loans.

Q. Is there a right or wrong attorney for my bankruptcy?
A good bankruptcy lawyer should have five or more years of experience in the field and be dedicated to helping people with financial problems. Being a bankruptcy lawyer can be as much about understanding debt as it is about understanding bankruptcy law. Be wary of debt relief companies charging unrealistically low fees for chapter 7 cases as you may be receiving bankruptcy petition preparation service only.

Q. Will bankruptcy stop a foreclosure?
Chapter 7 or Chapter 13 will halt a foreclosure. Chapter 13 is the appropriate Chapter for someone who is seeking the help of the bankruptcy court in curing the underlying problem of arrears or lien stripping multiple mortgages. Anyone facing foreclosure is well advised to talk to a bankruptcy attorney now as recent changes in the bankruptcy laws make eave of foreclosure filings problematical.