FREQUENTLY ASKED BANKRUPTCY QUESTIONS


This page is only intended to provide basic information about the following subject matters.  This information is not intended to be legal advice, substitute the advice of an attorney, nor create an attorney / client relationship. 


Q: "What happens to my home, vehicles, and other belongings when I file for bankruptcy?"
 
A: The answer to this question is very situation specific, but, most people will go through a bankruptcy and keep everything they own.  Additionally, you can continue to keep a mortgage or a car loan as long as you keep making the required monthly payments.


Q: "Will everyone know I filed for bankruptcy?"
 
A: The odds are, No.  While it is true that bankruptcy proceedings are public record, unless somebody actively seeks out whether you have filed for bankruptcy, the only ones who will know that you have filed for bankruptcy are your creditors.


Q: "What will happen to my Credit Rating?" 

A: What Credit??? Again, the answer to this question is very situation specific, but, most people who file for bankruptcy have more debt than they can afford and are late on their payments.  For these people, their Credit Rating will most likely go up after filing for bankruptcy. The fact you filed bankruptcy stays on your credit report for ten years.  It becomes less significant the further in the past the bankruptcy is.  The truth is,  you are probably a better credit risk after filing bankruptcy than before.


Q: "Will I be able to get Credit again?" 

A: Almost all of my clients are flooded with credit card offers after filing for bankruptcy.  Many of my clients have gotten auto loans right after filing bankruptcy.  In fact, two years after a bankruptcy discharge, debtors are eligible for mortgage loans on terms as good as those of others, who have not filed bankruptcy.  The size of your down payment and the stability of your income will be much more important than the fact you filed bankruptcy in the past.


Q: "Will I have to go to Court?"

A: The answer to this question varies depending upon the facts of the situation, but the odds are, No.  The only thing most people are required to attend is a 341 Meeting which is held by the bankruptcy trustee. 


Q: "How long will it be before my debts are discharged?"

A: The answer to this question varies depending upon the facts of the situation, but for a majority of the situations, we are looking at four to six months in Chapter 7 Bankruptcy cases. 


Q: "Can I file for Bankruptcy only once?"

A: No.  You can be successfully discharged from a Chapter 7 Bankruptcy again eight years after the first.