Bankruptcy Questions

It’s important to know the answers to any and all questions you may have about bankruptcy before deciding to proceed with filing. You want to make sure that you have a solid grasp of exactly what you’re getting into, or you may end up regretting the decision a few years down the line. While some answers depend on your specific financial situation, there are some universal answers to bankruptcy questions that apply to all cases.

Q. How long with filing bankruptcy stay on my credit report?
A. Bankruptcy will remain on your credit report for 10 years as of the date you filed.

Q. What personal property is liquidated when I file bankruptcy?
A. Real estate and motor vehicles are commonly liquidated to pay your creditors. The trustee will then posses the rights to your property until your debt can be paid.

Q. How can I remove bankruptcy from my credit score?
A. You can’t. There is no way around having it on your credit report for 10 years if you follow through with filing.

Q. Do I have to make a court appearance?
A. While you can have a bankruptcy attorney sit in for you during any of the later phases of the court proceedings, you must attend the 341 Bankruptcy Meeting (a meeting between you and representatives from your creditors). If you do not attend this meeting, no further action can be taken, and they are very strict about maintaining this rule. Do not miss your 341 meeting.

Q. Is filing bankruptcy free?
A. No. There is a charge of about $300 to file, which does not include lawyer fees, which can generally range anywhere from $1,000 to $2,000. If there is any dispute from your creditors, this amount can increase as the process drags on. Most consultations however, are generally free.

Q. Are there limits to how many times I can file bankruptcy?
A. Yes. In regards to Chapter 7 bankruptcy, an individual can file only once every 8 years. While a debtor can file again after that time limit has expired, it generally becomes more difficult to file again.

Q. Is it difficult locating efficient bankruptcy attorneys?
A. No. Fill out the free evaluation above and one will contact you promptly.

Q. What properties are exempt from bankruptcy liquidation?
A. This generally varies from state to state, different exemptions being made for different kinds of property. For example, up to $40,000 of equity in your home is protected from liquidation in the state of Wisconsin. In the state of Georgia though, bankruptcy law only protects $10,000.

Q. Will creditors stop harassing me after I file?
A. Yes. By law creditors must cease all contact with you after you have filed for bankruptcy. However, it must be noted that bankruptcy is not the only way to halt creditors from continuously calling.

Q. What are some of the alternatives to bankruptcy?
A. There are several alternatives to filing bankruptcy. These include:
• Debt Consolidation Loans
• Debt Counseling
• Debt Settlements

Q. How do I know which path away from debt is right for me?
A. The only way to answer this question for sure is to have an experienced professional evaluate your specific situation and give you their educated opinion. Fill out the free evaluation form above, and one of our legal professionals will contact you promptly with the answers you’re looking for. Bankruptcy might NOT be your best option. Avoid worsening your financial situation and start the debt elimination process right now!