FAQ
How do I get credit card companies to stop calling me?
Hire a bankruptcy attorney! Once creditors are made aware that you are represented by an attorney, they are not allowed to contact you!
When you file for a consumer bankruptcy protection under Chapter 7 or 13, a provision called “automatic stay” kicks in and halts the progress of all attempts to collect all debts, including existing lawsuits, car repossession, and wage garnishment. The automatic stay is a rule that prevents creditors such as credit card companies from doing anything at all to enforce a claim against you during your bankruptcy case. The automatic stay remains in effect until the case is closed, except in certain instances.
Will filing bankruptcy stop a home foreclosure already in process?
Most people who file for bankruptcy are already several payments behind and are not able to make up the amount of late payments right away. Individuals who wish to keep their home and are willing and able to make up missed payments over a period of time should consider Chapter 13 bankruptcy since Chapter 7 stalls, but does not permanently stop a foreclosure.
Can my utilities be shut off when I file for bankruptcy?
A utility company may not shut off service solely because you file bankruptcy or because you owe them money at the time you file. However, if you don’t give them an adequate deposit or other assurance of payment, the Bankruptcy Code allows them to shut off service. However, state utility regulations frequently have provisions that restrict utility shutoffs.
What property will I be allowed to keep if I file bankruptcy?
The property or assets you are allowed to keep after filing bankruptcy depend, in part, on which type of bankruptcy you file. For example, in a Chapter 7 case, the amount of property you are allowed to keep depends in part on whether you are using a homestead exemption. In a Chapter 13 case, you can keep all of your property as long as your repayment plan meets the requirements of bankruptcy law. In most cases, in order to keep property or assets, you will have to pay the mortgages or liens as you would if you didn’t file bankruptcy; bankruptcy may simply provides you more time to do so.
What happen to my home and car if I file bankruptcy?
In most cases, you will not lose your home or car during bankruptcy as long as you are able to make the payments. If your car is paid for, the value of the car becomes the issue.
How will filing bankruptcy affect my credit score?
If you are behind on your bills, your credit may already be damaged. Most times, bankruptcy will not make things any worse. The fact that you’ve filed a bankruptcy can appear on your credit record for ten years. However, because bankruptcy wipes out your old debts, you are likely to be in a better position to pay your current bills, and you will be able to get new credit over time.
What does it mean when debt is ‘discharged’?
A “discharge” in bankruptcy means that you are legally free and clear of any obligation to repay certain debts; they are literally erased. The creditor no longer has any right to collect a discharged debt and you no longer have an obligation to repay it. The timing of the discharge varies depending on the chapter under which you file. In a Chapter 7 bankruptcy, you may receive a discharge within months of filing a petition. In a Chapter 13 bankruptcy, the discharge occurs after you have successfully finished the payments you agree to make under your plan.
Will bankruptcy discharge my past-due income taxes?
The discharging of taxes is very complicated and generally requires the guidance of an experienced bankruptcy attorney. Whether or not past-due taxes can be discharged depends on the type of bankruptcy you file. For example, a Chapter 7 debtor can wipe out federal income taxes if all of several criteria are met.
In a Chapter 13 case, you’ll pay the IRS as part of your repayment plan. Not staying current on post-petition taxes, however, will put your plan at risk.
What types of debt cannot be discharged?
With some exceptions such as proof of undue hardship for student loans (extremely difficult to prove), debts that cannot be discharged include:
- Domestic support obligations such as alimony, child support, or property settlements
- Student loans, including: privately funded loans, loans guaranteed by a governmental agency, and loans made or funded by a governmental agency or nonprofit institution
- Certain credit-card transactions on the eve of bankruptcy are presumed fraudulent and, therefore, can be non-dischargeable. This includes luxury goods and services totaling more than $550 within the past 90 days and cash advances of $825 or more received within the past 70 days.
- A debt incurred to pay a non-dischargeable tax to any governmental unit (not just the US government). Debts to pay fines or penalties imposed under federal election laws
- Debts to qualified retirement plans