We understand filing for bankruptcy can be a stressful decision to make. We want you to know that we are here to help guide you through the bankruptcy process and answer all of your questions. These are a few of the most common questions we hear in our practice.
After filing for bankruptcy, you will be able to rebuild your credit, and may be able to have a stronger financial profile than before filing. Many credit card companies offer low limit cards that can help you rebuild credit, and it may take as little as two years for your credit score to reach above 700.
If you file for Chapter 7 Bankruptcy, which is the faster option, you may have to sell some of your assets or property to repay creditors. Exemptions may allow you to keep some of your property. Filing for Chapter 13 Bankruptcy allows you to keep all your property and assets, instead incorporating a multi-year payment plan to repay creditors.
If you are married, you do not have to file jointly for bankruptcy. You may have to provide information on your spouse’s income, but bankruptcy does not affect your spouse in any way, including their credit.
Although that is possible in some cases, losing one’s home may be preventable and is not always the result from a bankruptcy filing.
A consumer credit report may include Chapter 7 and Chapter 13 Bankruptcy information for ten years from the time the case is filed. Most other credit information can be included in a consumer credit report for seven years.
Education loans guaranteed by the United States government are generally not discharged by a Chapter 7 or Chapter 13 Bankruptcy. They may be dischargeable however, if the court finds that paying off the loan will impose an undue hardship on the debtor.