a Chapter 13 would serve your needs better, but if you feel pressuredby your financial situation bankruptcy can be your way out.
5.Is all that paperwork really necessary?
a.All of the paperwork has a purpose, even though it may not seem likeit to you. The information gathered by your attorney, whether viaquestions or documents, is absolutely vital and needs to be attained.Like with most things, there is an easy way and a hard way and withbankruptcy it is best to make things go as smoothly as possible.
6.What is the difference between secured and unsecured debt?
a.The term “secured debt” means that the debt is “secured” by physicalproperty like a house, car, or piece of furniture. Unsecured debts are just the opposite; these are your credit cards, phone bills, and otherthings of that nature. An easy way to tell the difference between thetwo is to ask yourself, “Can this be repossessed?” If yes, then it’s asecured debt.
7.Are co-signers responsible for the loan if the primary files for bankruptcy?
a.Yes, any and all co-signers are responsible for the loan if the primarydefaults on it. The lender can make you make the payments in lieu of the primary, especially if they file for bankruptcy on the debt. Alwaysconsider the financial position of the person you are co-signing forbefore you agree to attach yourself to the loan. Also, be prepared tomake a payment or two if the primary cannot make the payment toprotect your credit.
8.Who tells my creditors that I’ve filed for bankruptcy?
a.The bankruptcy courts will notify the creditors by mail that you havefiled for bankruptcy. The information included in this notification is:i.The case numberii.The automatic stayiii.What type of bankruptcy filediv.The name of the trusteev.The date of the creditors meetingvi.And other information depending on the type of bankruptcyfiled
9.Will I be able to keep anything?
a.Yes, you will be able to keep some things after bankruptcy. These are“exemptions” and are defined by the state and usually include yourcar, your house or the equity in the house, and anything required foryour job i.e. “tools of the trade”.
10.Will I lose my job?
a.No employer can fire you because you have fired for bankruptcy. Thiswill, however, not protect you from being fired for any other reason. In