Our new Bankruptcy FAQ’s has the answers. We picked the most asked bankruptcy questions we received in 2014. Read on. We are giving you fast, on the money answers. We have not sugar coated anything. If you want in depth reading, try our Human Guide to Bankruptcy.
Do you have a question we didn’t cover? If so, you can email me personally. I’m glad to tackle any question not covered here. My personal email is firstname.lastname@example.org.
These bankruptcy FAQ’s cover who gets to file bankruptcy; new credit after bankruptcy; should I file bankruptcy; can I file bankruptcy without a lawyer; can I keep any credit cards when I file bankruptcy; will the bankruptcy court take anything away from me; will my creditors fight my bankruptcy; what happens at my bankruptcy hearing; what kind of bankruptcy is best for me.
The bankruptcy FAQ’s on who gets to file.
Many people think you can’t file bankruptcy unless you are poor. Or dead broke. Or unemployed. None of that is true. Most people who file bankruptcy are working. They just don’t make enough money to meet their basic living expenses AND pay for their installment debts. In fact, people with above average income usually qualify. And, people with primarily business debts always qualify.
Bankruptcy FAQ’s on how to get new credit afterwards.
Don’t plan a credit card binge. Most people do reestablish some credit. Often quickly. But don’t expect to have anything like the old credit you used to have. In fact, filing bankruptcy and keeping a good credit score is possible. But yes. There’s a trick. You need a great credit score until you file bankruptcy. Most folks file bankruptcy late in the game. After their credit is already ruined. Still, it is legitimate to ask how you can get credit after bankruptcy. This article will help point the way to getting new credit after bankruptcy.
Can I file bankruptcy without a lawyer.
Sure you can. You can also cut your own hair, but you won’t win any fashion awards. If you handle your own bankruptcy, just expect a mess. What are the odds of doing your own bankruptcy correctly? Read this.
Can I keep certain credit cards when I file bankruptcy.
You must list all debts. Even debts you want to keep. If you owe money to your mom, you have to list her, too. Even if you don’t list certain credit cards, they will still find out. Those credit cards will be cancelled. These days, all banks get automated bankruptcy filing data. That data is matched up with the customer list of every bank. If you owe them money, your card will be cancelled. Even if you didn’t list them. And there is other trouble in store for you. You bankruptcy hearing will probably be continued until you get all debts listed correctly. That means you have to prepare, file, and serve bankruptcy amendments. You will have to pay more court filing fees. And, take more time off from work for extra needless hearings.
Will the bankruptcy court take anything away from me.
The law is quite generous. Generally speaking, most people can keep assets that are necessary and important to them. For example, retirement plan monies enjoy special protections. The actual designation of what you can keep varies from state to state. This is what are called “exemptions”. To see the list of exemptions, click here. Keep in mind the law applies a reasonableness standard. You probably need a car to get to work. But that doesn’t mean you can keep a Rolls Royce. You need a bed. But you don’t get to keep a bed that was once owned by Marilyn Monroe.
Will my creditors fight my bankruptcy.
Most bankruptcy cases go through courts without a fight. However, creditors can object if you have done things that are bad or unfair. For example, using lies to trick creditors into loaning money. The biggest obstacle in the past year has not been from creditors. Rather, it is from the bankruptcy court administrators. They are called the Office of the United States Trustee. They examine your paperwork. They may object if your papers were done wrong. When that happens, your case may be dismissed or converted to a different chapter of bankruptcy than what you wanted.
The bankruptcy faq’s about your court hearing.
You are required to appear for a hearing conducted by the bankruptcy trustee. Most hearings are fast. Usually just a couple of minutes, and then you’re out of there. The trustee is concerned with making sure that your paperwork was done correctly. The trustee also investigates to see if you have assets that are not exempt. Also, to see if you have made fraudulent transfers. Or made payments on debts that can be recovered and shared among all creditors.
What kind of bankruptcy is best for me.
The different chapters of bankruptcy were created as remedies to fix different specific problems. If you are in foreclosure and want to save your house, consider Chapter 13. Chapter 13 may stop the sale, and give you as much as 5 years to catch up. For simple, standard credit relief, consider Chapter 7. But it gets very complicated. Chapter 13 can even be a hybrid. Sometimes you can use Chapter 13 in ways similar to Chapter 7. While at the same time preserving the unique features of Chapter 13. Doing that might result in a case where you cure your mortgage. Then wipe out credit card debts. And, maybe even lien strip a second mortgage. Do yourself a favor. See a bankruptcy specialist.