Bankruptcy FAQ
Facing overwhelming debt is a heavy burden, but one you do not have to carry alone. Grech Legal is here to help. Attorney Matthew Grech frequently receives the following questions from Bay Area residents who want to understand how bankruptcy can help restore their financial stability and peace of mind.
Are There Different Types Of Bankruptcy?
Yes, bankruptcies are categorized by chapter, and individuals primarily file under Chapter 7 or Chapter 13. A Chapter 7 bankruptcy allows individuals to discharge unsecured debts, such as credit cards and medical bills, in about four to six months.
Chapter 13 is a three- to five-year repayment plan that helps borrowers catch up on missed mortgage payments and keep their homes. While Chapter 7 typically involves no repayment to creditors, Chapter 13 requires repayment of at least some of the debt based on the person’s ability to pay.
What Are The Qualifications To File For Bankruptcy?
Each chapter has specific requirements that a lawyer must evaluate based on your unique situation. To qualify for Chapter 7, a person must pass the “means test,” which assesses whether their income is low enough to qualify for debt discharge. Chapter 13 is often the right choice for those with a steady income who do not pass the means test but still need a structured way to handle debt and prevent foreclosure.
What Can Bankruptcy Do For Me?
Bankruptcy is a powerful tool that can immediately stop creditor harassment, lawsuits and bank levies. It provides a way to eliminate credit card debt and medical bills while preventing home foreclosures and vehicle repossessions. By filing, a person can protect their wages from debt-collection garnishment and end harassment by collection agencies.
How Long Does The Bankruptcy Process Last?
The timeline depends on the path a person chooses. A Chapter 7 case moves quickly and is typically completed within four to six months of the filing date. A Chapter 13 case is a longer commitment, lasting between three and five years as the person completes their court-approved repayment plan.
How Much Will It Cost Me To File Bankruptcy?
Filing costs are split between court and attorney fees. As of the end of 2025, the current federal court filing fees are $338 for Chapter 7 and $313 for Chapter 13. Fees for an attorney depend on the complexity of the case and the amount of debt involved. Attorney Matthew Grech provides clear information on these costs during the free initial meeting.
Will Bankruptcy Ruin My Credit?
Many people considering bankruptcy already have low credit scores because of missed payments and high debt. Filing for bankruptcy does not ruin credit; instead, it often serves as the first step toward fixing a credit score by providing a fresh start. Once old debts are paid off, a person can begin rebuilding their financial profile on a clean slate.
Who Will Know That I Filed For Bankruptcy?
While a bankruptcy petition is a public record, most people will only know about the filing if the person tells them. Creditors are notified so they can stop collection efforts, but the process is generally private for the average individual. Neighbors and friends typically have no reason to search public court records.
Will My Employer Be Notified That I Filed For Bankruptcy?
In most cases, an employer is not notified when a person files for bankruptcy, unless the employer is also a creditor or must be notified by the court to stop a wage garnishment.
Additionally, if a person files for Chapter 13, the court might issue a wage order instructing the employer to deduct the monthly plan payment from the employee’s paycheck and remit it to the trustee. Outside of this specific scenario, the filing usually remains separate from a person’s professional life.
What Is A Bankruptcy Trustee?
A bankruptcy trustee is an impartial person appointed to oversee the case and ensure that the process complies with the law. The trustee reviews the petition and supporting documents to verify the accuracy of the information. They also hold a meeting in which they ask the person questions under oath about their financial situation.
Will I Have To Turn Over My Property To The Trustee?
Most people can keep their homes, cars and personal belongings provided they are within California’s exemption limits. An experienced lawyer leverages legal exemptions to protect assets from sale. Through careful pre-bankruptcy planning, the firm identifies which exemptions apply, allowing the individual to keep their property while still receiving debt relief.
Get A Free Consultation For Debt Relief
If you are struggling with debt or creditor pressure, Grech Legal can help you find a path forward. Contact the firm to schedule a free initial consultation to discuss your specific story and financial goals. Residents in San Jose and across the Bay Area can reach the firm at 408-214-0385 or by using the online contact form.
This is a debt relief agency. Attorney Matthew Grech helps people file for bankruptcy relief under the Bankruptcy Code.