Louisiana Bankruptcy Attorney

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BANKRUPTCY QUESTIONS AND ANSWERS

Bankruptcy Resources

COMMON QUESTIONS

Bankruptcy
FAQ

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.

Creditors are actively seeking repayment of debt, so they can contact you, but there are limits to the types of actions they can take. The Fair Debt Collection Practices Act (FDCPA) states that creditors must not call you at all hours with harassing messages, exaggerate or lie about your debt, or fail to give you a letter describing your debt in detail. We can help if your creditors have crossed the line. Upon filing for bankruptcy, creditors are no longer allowed to contact you.

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.

Wage garnishment is a way for creditors to get back the money you owe and some financial institutions may implement this if they feel it necessary. Once your bankruptcy petition is filed, creditors can no longer garnish wages.

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.