If you are facing personal bankruptcy, you probably have a long list of questions. The process can seem daunting, but educating yourself and equipping yourself with experienced legal counsel can make it more manageable. Here are ten common concerns debtors have about bankruptcy:
1. How long does bankruptcy take?
Bankruptcy can usually be completed in a period of a few months, but if you have a debt repayment plan, as with Chapter 13, your bankruptcy may not be finalized until you make the last payment.
2. What debts can be discharged?
Unsecured debts can be discharged, such as credit card or medical bills.
3. Will bankruptcy stop creditors from calling?
Yes, bankruptcy causes a stop to be put on creditor actions until your case is resolved, so once you file, the calls will stop.
4. How long will the bankruptcy remain on my credit?
It depends on what type of bankruptcy you file. Your bankruptcy can be on your credit for eight to ten years.
5. How much does it cost?
A bankruptcy attorney will advise you of fees at the outset. Most cases can be handled for a set fee of a few thousand dollars or more depending on your location and the complexity of your case.
6. Will I ever get credit again?
Eventually you can rebuild your credit if you are tactical in your approach and remain patient.
7. Can I keep my vehicle?
It depends. The value of your vehicle will have to be assessed to determine whether you can keep it. Many debtors retain their vehicle through bankruptcy. Talk to an attorney about your specific case.
8. Can I keep my house?
It depends. Many debtors keep a house through bankruptcy. This can be available to debtors who file a Chapter 13 restructure program bankruptcy, depending on the value of your home and the law of your state.
9. Can I file more than once?
Yes, you can file for bankruptcy multiple times, but you will have to wait between filings. The amount of time depends on the type of bankruptcy filed in each instance and can be from two to eight years.
10. How do I repair my credit after bankruptcy?
You will need to obtain your credit reports, pay your bills timely and use credit to rebuild your credit after bankruptcy.
Getting Legal Help
If you have questions about bankruptcy, call a personal bankruptcy attorney today to get your questions answered and find out if bankruptcy is a good option for you.
