What is bankruptcy?
Bankruptcy is a term for a procedure in federal court that helps consumers and businesses eliminate debt and/or repay creditors.
Why should I file for bankruptcy?
If your debt has become unmanageable, it’s time to consider filing for bankruptcy. However, you should consult with a bankruptcy attorney before making this decision. Attorneys can provide legal expertise regarding if and how you should file.
Why do I need a bankruptcy attorney?
You are not legally required to have a bankruptcy attorney, but allowing us to help you navigate the complex requirements of the bankruptcy law results in more complete relief.
What do I need to begin the bankruptcy filing process?
At our first consultation, we will provide you with a detailed list of documents and information needed for the preparation of your bankruptcy filing.
What is the difference between filing for Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 is a liquidation bankruptcy and Chapter 13 is a reorganization plan. Chapter 7 will eliminate all of your eligible debt, but not everyone is qualified for Chapter 7. In contrast, Chapter 13 bankruptcy requires the repayment of some of your debt over time in accordance with a court-approved plan. In both chapters, you are protected by law from creditors’ collection efforts.
If I’m married, does my spouse have to file for bankruptcy too?
Technically, no. However, the decision between filing alone or jointly is complicated. We will help you determine which option is more advantageous for your situation.
Will filing for bankruptcy eliminate all of my debts?
Filing for bankruptcy will eliminate most but not all of your debts. Exceptions include student loans, alimony, maintenance, child support, and some income taxes. This will be discussed in detail at your consultation.
How will bankruptcy affect my credit?
Chances are, by the time you have considered filing bankruptcy, your credit score has been negatively impacted. Filing Chapter 7 bankruptcy often has the effect of improving your credit score within the first year as a result of debt being erased.
How can you improve your credit score after filing for bankruptcy?
You can rebuild your credit score with a positive payment history. After filing for bankruptcy, it is crucial that you continue to make existing mortgage payments and car payments on time. You may also obtain a secured credit card. With regular and responsible use of the secured credit card, you can help improve your credit score.
How long does bankruptcy stay on my record?
In Chapter 7 bankruptcy, it will remain on your record for seven to ten years. Chapter 13 bankruptcy will remain on your record for less than seven years.
What are my alternatives to filing for bankruptcy?
Beware of for-profit credit counseling or debt consolidation companies. The fees are often high and must be paid before any debts are paid. Be sure you understand what such companies can and cannot do for you. Specifically, you will have no legal protection from your creditors who may continue to sue you or take other collection actions against you. Give us a call today to explore your options.
