FAQ'S
Q. How long is a bankruptcy filing be listed on my credit report?
A. Generally 7 to 10 years, it depends on the credit reporting agency
Q. Am I able to get credit after filing a bankruptcy?
A. Yes. It may be difficult to get credit right away, but in about 6 months to 1 year you should be able to find a copy that may extend to you credit. In many cases, filing for bankruptcy actually improves a person’s creditworthiness right away. People contemplating bankruptcy usually already have bad credit. At that stage, bankruptcy may be the fastest practical way to improve credit scores because a bankruptcy discharge relieves you of all liability for your discharged debts. This gives you a fresh start which in many instances makes lenders more willing to extend you credit. In addition, the law generally requires that debtors who file for bankruptcy may not file another one for several years afterward. Prospective lenders are often aware of this, and therefore, when they consider a loan application, they are not afraid of a second bankruptcy.
However, be very careful as you do not want to fall into the same problems that led your bankruptcy. Clients have obtained mortgages and car loans shortly after completing a bankruptcy filing; however, he/she just did not get the best interest rates and had to pay points on the mortgage loans.
Q. Do I have to attend court?
A. For both chapter 7 and chapter 13 you will have to attend at least one court hearing which is called the meeting of creditors. It is a 15-20 hearing in a very informal and non-intimidating setting.
Q. Can I file bankruptcy with another person?
A. Only spouses can file bankruptcy together, not relatives, fiancées, or friends, etc.
Q. Can I choose what credit cards or loans to list on my bankruptcy?
A. No. You must list all of your debt, you cannot pick and choose.
Q. Will filing bankruptcy cause me to lose my home or car?
A. Usually not. You may choose what property you wish to continue to pay for and keep after bankruptcy. In most cases, the equity in a person’s home and car is protected by the bankruptcy court. Therefore, most individuals do not lose these assets unless they voluntarily decide to surrender them because, in certain cases, these assets have no equity and the monthly payments are creating financial hardship for the consumer.
Q. Will a bankruptcy discharge student loans?
A. Generally no. However, there are exceptions to this rule. The main exception is called a hardship. This is where a person would argue that even though they have the student loan debt, they cannot use the degree received because of a disability or other inability to work. The standard to be successful with this argument is high, but if a person is truly disabled or otherwise unable to work, and can legitimately and clearly support that position, the person has a strong chance at having the student loans discharged.
Q. Will a bankruptcy discharge taxes?
A. Generally no. However, in a chapter 7 a person can ask the court to discharge taxes that are 7 or more years old, a tax return was filed, and the person was unable to pay the taxes due to financial inability, not because money was spent on luxury items or carelessly.
Q. Will a bankruptcy discharge past due utility bills?
A. Yes, the filing of the bankruptcy discharges all amounts owed to utility companies prior to the filing. However, the person must pay all bills due and owed after the filing or service can be shut off.
Please call the Law Office of Paul S. Peters III, P.C. with any other questions or concerns you may have. Stop worrying and being harassed, and speak with and employ the services of a competent, understanding, and trustworthy bankruptcy professional such as Paul S. Peters III, Esquire.
Don’t Delay, CALL NOW! 215-291-2944.