Nelson & Schwab FAQ Page

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Use the index below to find answers to Frequently Asked Questions.

Do I need to hire an attorney to file for Bankruptcy Protection?Yes and No.
Yes, businesses, corporations and partnerships are required to hire an attorney to file their bankruptcy case.
No, Individuals are not required to hire an attorney, and DO have the right to represent themselves in bankruptcy court. To do so is to file "pro se." Please remember that filing for bankruptcy protection is a very technical process.
Due to the long-term legal consequences on your financial life, it is important that all documents and processes are filed and followed precisely. One seemingly small misstep could result in a delay of your case, or worse yet, the loss of your right to file another case.
Nelson & Schwab highly recommends that you seek the services of a competent attorney to guide you this complex process and uncertain time. For further explanation, click here for an overview provided by the United States Federal Bankruptcy Courts.TOP

Which chapter should I consider when filing
for individual bankruptcy protection? Chapter 7 and Chapter 13 are the most common forms of individual protection. In certain cases like sole proprietorships, Chapter 11 protection may be more appropriate. Contact Nelson & Schwab today for a thorough discussion of the relief best suited for your situation.TOP Which chapter is best suited for business bankruptcy relief?Chapter 11 is reserved for businesses in most cases. And, depending on several factors pertaining to how your business is run and owned, Chapter 7 may be a viable option. Chapter 12 is reserved for family farmers and fishing operations. Nelson & Schwab are well versed in all chapters of relief, we’re ready to discuss and recommend the type of relief most appropriate for your circumstances.TOP Will filing for bankruptcy stop creditor’s phone calls and letters? Yes. This is the most positive aspect of filing for bankruptcy relief. Once you file for protection, the federal district court issues a “stay order” to your creditors. This order immediately stops creditors from attempting to collect. The harassing telephone calls and letters you’ve been receiving stop within a few days. Once you’re represented by Nelson & Schwab, all creditors must contact us from that point forward.TOP If I file bankruptcy, will my debts all be erased? No. Rather than simply erasing your debts, Bankruptcy protection prohibits your creditors from attempting to collect your outstanding debts. Nelson & Schwab reminds you that a bankruptcy discharge stays on your credit record for up to 10 years. This fact may seriously affect your ability to borrow in the future.TOP If I file for Bankruptcy, can I keep valuables like my home or car? Maybe. Without a thorough examination of your specific situation and the type of bankruptcy filed, it is not possible to qualify with certainty. However, in many cases, individuals are able to keep their home,vehicles, personal property and retirement accounts. Call Nelson & Schwab for an in-depth discussion of your personal situation; we’ll cover and discuss all of your options
in complete detail.TOP Do I need to list all of my debts when I file? Yes. Bankruptcy law requires 100% disclosure of ALL debts, not just the debts you wish to have discharged. Failure to do so may be perceived as bankruptcy fraud, which is a federal crime.TOP How are debts categorized? There are 3 broad classes of debt: priority debts, secured debts and unsecured debts. The description of these is much too lengthy and technical for this forum. For an in-depth discussion, call Nelson & Schwab for your free consultation. Or, click here for a thorough explanation by the US Bankruptcy Courts. Keep in mind, when you partner with Nelson & Schwab, one of the first we do is list and categorize your debts into the proper classes.TOP What is the 90-Day Rule? The 90-day rule states that one cannot engage in unusual financial activity within 90 days of filing for bankruptcy. Basically, this prevents people from going on a buying spree before filing and having the debt eliminated.
Nelson & Schwab reminds you that making significant purchases, giving loans or paying off debts during this 90-day period may be considered fraud. Bankruptcy fraud is a serious crime that can result in your case’s dismissal and even criminal prosecution.TOP Click here for free consultation >>