Bankruptcy's Frequently Asked Questions
Which type of bankruptcy should I file?
- This depends on many factors, such as your income and if you have a lot of assets that you want to protect. If you have little income and not much assets, you may qualify and file for Chapter 7. Not everyone can qualify for Chapter 7 as that is restricted for lower income filers. If you have a steady income and have significant assets that you want to protect, Chapter 13 may be an option. We recommend that you have a bankruptcy lawyer review your situation to help you determine the type of bankruptcy most suitable for you.
Can I keep my home and car if I file for bankruptcy?
- Most bankruptcy filers are able to keep their primary residence and vehicle when they file for Chapter 7 or Chapter 13 as long as they are able to keep up with the payments. There are also bankruptcy exemptions that can protect the equity in your property, which saves them from being liquidated in a Chapter 7 bankruptcy. If you are interested in protecting your car and home, contact an attorney to learn more about your options.
Will my credit score go down after bankruptcy?
- While it is true that your credit score can take a hit after filing for bankruptcy, you can take steps to rebuild your credit after bankruptcy. By making your payments on time, staying out of debt, and developing good credit habits, you can find that over time, your credit score will start to improve.
Do I need a lawyer to file for bankruptcy?
- You are not required to have an attorney to file for bankruptcy, but it is recommended that you hire one to handle your case for you. Bankruptcy laws and paperwork can be complex, and you want to make sure that your petition is within legal guidelines, such as asset disclosures. Your attorney can negotiate with creditors for you, and resolve any disputes that may arise.