Your credit rating can improve significantly within 2 years after filing, especially if you take the right steps to do so. Many factors impact your credit score. Someone with a very low score could see an increase in their score almost immediately after filing, while someone with excellent credit may see a decrease. Regardless, as long as the correct steps are taken after filing, you could have a great score within a couple of years. Even though your credit report will show (for 7 to 10 years) that you filed a bankruptcy, your credit score is what lenders generally look at when determining loan eligibility.

Yes. It will depend on the lender, but we frequently have clients get approved for loans while in bankruptcy. However, if your score has not yet increased, you will likely have to pay a high interest rate. A down payment is always helpful. You will need to obtain permission from the bankruptcy trustee, which is usually granted as long as the loan is reasonable and necessary and affordable.

Individual (or married) consumers need Chapter 7 and Chapter 13. Your attorney will ask specific questions to determine which chapter is right for you. There are some kinds of debt that are not dischargeable. In some situations, a Chapter 13 payment plan is needed in order to set up a manageable way to pay those debts. There are other additional factors to consider, however, which your attorney should explain. For farmers, Chapter 12 is sometimes the best option and Chapter 11 for businesses.

Individual (or married) consumers need Chapter 7 and Chapter 13.  Your attorney will ask specific questions to determine which chapter is right for you.  There are some kinds of debt that are not dischargeable.  In some situations, a Chapter 13 payment plan is needed in order to set up a manageable way to pay those debts.  There are other additional factors to consider, however, which your attorney should explain. For farmers, Chapter 12 is sometimes the best option and Chapter 11 for businesses.

Yes, the bankruptcy code requires that all creditors be listed. Your attorney can explain how each creditor can or will be treated.

Yes. It is a federal crime, a felony, to intentionally fail to disclose to the Court, property or any other required information. It never pays to hide something from your attorney or from the Court.

Yes. When you file bankruptcy an automatic stay is immediately in place, which precludes your creditors from taking any action to collect debts, regardless of what that action may be.  A violation of this stay can result in that creditor being held in contempt. Examples of common collection practices that the stay will terminate include: garnishment, repossession, foreclosure, and court proceedings. The creditors are also stayed from making any form of contact with you once your case is filed.

For a typical Chapter 7 case, the discharge of your debts usually takes approximately 3 to 6 months. A Chapter 13 takes anywhere from 3 to 5 years.

The process to actually get the bankruptcy on file varies.  If you quickly provide all required information to your attorney, our firm can get a case on file within a very short period of time.  However, your attorney will discuss whether filing within a certain time period might be beneficial or detrimental to you, based on your specific situation.

Even if you are behind on these payments, Chapter 13 provides options to bring them current and resume with a manageable payment plan. If you want to keep the property, the creditor must be paid. However, sometimes, you can pay less than the amount owed or get a lower interest rate, but not always. Your attorney will discuss whether this is an option for you.

If you file Chapter 7, you will need to be current on the loan payments (unless you are wanting to surrender the property), and will likely need to sign a reaffirmation agreement with that creditor in order to reaffirm and continue the terms of the original contract.

No. It is against federal law for an employer to discriminate against someone for filing bankruptcy.

No. Intentionally running up your credit cards just before filing bankruptcy may cause that debt to be non-dischargeable on the grounds of fraud. You could also, ultimately, be fined. Even if you have unintentionally charged large amounts of credit card debt, especially for luxury goods, right before your bankruptcy, you should make your attorney aware so that steps can be taken to protect you from fraud allegations.