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Bankruptcy Faq

Bankruptcy Faq

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Published by Joseph Githuku

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Published by: Joseph Githuku on Jun 07, 2011
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05/12/2014

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BANKRUPTCY FAQs

1.

Is there more than one type of bankruptcy? Yes. For individuals there are two types of bankruptcies to consider. A Chapter 7 bankruptcy, often called “straight” bankruptcy will eliminate most of your debts. Chapter 13 bankruptcy is basically a repayment plan that allows you as an individual to keep property and pay all or part of your debts over a 3-to-5 year period. The repayment plan gives you relief from the pressure of creditors.

2.

Who can file for bankruptcy? Both Chapter 7 and Chapter 13 bankruptcies have very specific requirements in terms of income and amount of debts. You should talk to a knowledgeable bankruptcy lawyer to find out if you qualify.

3.

Is there a filing fee involved? Yes. Chapter 7 filing fee is currently $299.00. Chapter 13 bankruptcy filing fee is $274.00.

4.

Can I keep my home or Car? Whether you can keep your car or home depends on the specifics of your financial situation. Most people are able to keep their vehicle by reaffirming the debt. Some people have been able to keep their homes by getting a loan modification along with the bankruptcy filing.

5.

Will bankruptcy get rid of Child Support and/or Alimony? These payments are not affected by bankruptcy and must continue as ordered.

6.

What about my student loans? Student loans are generally not dischargeable unless to you can prove undue hardship.

7.

What about taxes and government penalties? Taxes are generally not dischargeable unless they are from generally speaking 2 years prior to your bankruptcy filing and you properly filed your taxes for each of the year involved.

8.

How long do I have to wait between one filing of bankruptcy and the next?

Can I change from one bankruptcy to another? Yes. How long does bankruptcy stay on my credit report? Bankruptcies generally stay on your credit report for anywhere between 7 and 10 years. Can I keep my credit cards? In practice. 9. 12.gov/ust/eo/bapcpa/ccde/cc_approved. Please be very mindful of this fact. 16. When will the harassing phone calls stop? As soon as your creditors (the people you owe money get notice of your bankruptcy filing attempts to collect the debt should stop. 10. most credit card companies will close your account even if you have been a model customer and your balance is zero. What do I need to need to begin the bankruptcy process? Collect all your debts and a list of all your assets. For a list of approved credit counseling providers go to the US Trustees Office website at: http://www. you can move from a chapter 13 to a 7. If someone else co-signed one of your loans the lender may go after that person even if you file for bankruptcy. The reaffirmation agreement is often used when someone wants to keep a vehicle. You can convert your case one time to another chapter that you are eligible for. For example.You need to wait 8 years between Chapter 7 filings.justice. 17. What is a reaffirmation agreement? It’s an agreement that once you sign on requires you to pay your debts even if those debts would have been dischargeable in bankruptcy. 14. 11. 13. It is against the law for your creditors to engage in any collection activity against your debts.htm 15. Can my co-signor be held responsible even if I file bankruptcy? Yes. Will my boss find out and how will that affect my job? .

but you find out that you are no longer able to do so. Can I switch from one chapter to another? Yes. Will I lose my retirement savings or Social Security Payments? Generally. For example. Should I stop using my credit cards and other lines of credit? It is advisable to stop using all credit as soon as it becomes clear you are going to file bankruptcy because such use so close to a filing may be challenged by your creditors as fraudulent. if eligible. You should know that employers are prohibited from discriminating against you solely based on the fact that you have filed for bankruptcy. however. posses an issue for those in the job market. What if I suddenly inherit money after filing for bankruptcy? Whether the inheritance is part of the bankruptcy depends on how many days it has been since the filing of your bankruptcy? Anything occurring with 180 days of filing is considered part of the bankruptcy estate. 19. It is now commonly known that employers will look at the credit history of prospective candidates. 21. . in Maryland your retirement accounts that are ERISA-qualified are protected from your creditors in bankruptcy. In that instance. you can file chapter 13 trying to save your home.If you are already employed it is unlikely your boss will find out unless he/she has a habit of checking Federal Court records or you accidentally have bankruptcy court mail sent to your office. 20. 18. This. iif you meet the income requirements and are able to pass the means test than you file a chapter 7 bankruptcy.

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