11/10/2020 — FAQ for individuals considering bankruptcy

Filing for bankruptcy brings financial relief and clarity for those who would benefit from it. Our clients come to Flores Law with many questions about how bankruptcy can benefit them and how to best tailor bankruptcy relief to their particular financial situation. These are brief answers to a few of the most frequently asked questions our clients have:

How will filing for bankruptcy affect my credit?

A common view of filing for bankruptcy is that it will have drastic, negative consequences for people’s credit. While it is true that a bankruptcy filing will be reported on your credit report, we frequently see that bankruptcy relief can actually help your creditworthiness by getting rid of high balances and negative reports on your credit.

Can I file for bankruptcy and keep my vehicle?

While each situation is different, for the vast majority of Flores Law clients, the answer to this question is yes. We work with each client individually to tailor their bankruptcy to their needs, and for many people one of those needs is to keep their car.

Will I lose any of my property?

For most types of personal property — such as furniture, vehicles, and other everyday items of property — Flores Law will make sure your case takes advantage of available exemptions under the law so you can protect and keep your property. If you have significantly valuable property, we will tailor your case so you get financial relief without losing your property.

I own a home. Is bankruptcy still right for me?

Flores Law has helped many homeowners obtain relief from difficult financial circumstances. If you are current on your mortgage, you can continue to pay and keep your home. If you are behind on your mortgage payments and your lender is threatening or has started foreclosure proceedings, Flores Law can stop those actions through bankruptcy relief. Bankruptcy can help you catch up on your mortgage payments over time and rest easier knowing that you won’t lose your home. 

Which type of bankruptcy should I file for?

Chapter 7 is sometimes referred to as a “liquidation” or a “straight” bankruptcy because the filer will ask for a discharge a short time after filing. Most Chapter 7 filers are “no asset” cases in which no property is distributed. Chapter 7 also has income requirements based on the number of persons in a particular household.


Chapter 13 bankruptcy is sometimes referred to as a “repayment” or a “wage earner” bankruptcy. For individuals that earn over the Chapter 7 income requirements or have unexempt property that they don’t want to lose, a Chapter 13 bankruptcy will reorganize your debts into simple payments for distribution to your creditors. Depending on your property and your income, you can still get a discharge from some or even all of your debts in a Chapter 13.