Can I Even Afford To File A Bankruptcy?

For most people, affording a bankruptcy isn’t difficult. There are two types of bankruptcy. Even the one that’s more expensive upfront can be paid over a period of time and based on the individual’s abilities. Usually, people can’t afford to file bankruptcy because of the overwhelming debt that they are burdened with.

Can I Transfer Money Or Assets Before I File Bankruptcy To My Family Or Friends?

Transferring assets before bankruptcy would be considered a fraudulent transfer and create all sorts of problems within the bankruptcy, and could even lead to criminal charges. It’s very important that, if you are considering filing bankruptcy, you contact an attorney who can walk you through what is and what isn’t acceptable.

Can I Charge Up A Lot Of Credit Card Debt Before I File Bankruptcy?

If you charge up a lot of credit card debt right before you file bankruptcy, that would be considered a fraudulent transaction and may either jeopardize your bankruptcy or lead to criminal charges.

What Are The Long and Short Term Negative Impact Of Filing A Bankruptcy?

The short term effect of filing bankruptcy is that you are going to have a negative impact on your credit score. If you are attempting to get credit, although it will be available, it is usually available at a higher interest rate. As far as long term effects, there are typically no long term negative consequences. Usually, the long term consequences are actually positive.

How Long Do Bankruptcies Typically Last?

Chapter 7, which is known as the fresh start or complete bankruptcy, usually takes between three and four months. Chapter 13, which is a reorganization of the debt, takes anywhere from three years to five years.

Should I Consolidate Debt Or Explore Other Options Before I File Bankruptcy?

It’s always important to explore all options available before making a decision that’s as important as a bankruptcy. However, usually, you will find that the consolidation of debt or debt settlement ends up being not as good of an option as the bankruptcy. If you do debt consolidation and you are thinking about filing bankruptcy, then they are going to look at that consolidation as a transaction which is adverse to that particular creditor. That can present problems for you in the bankruptcy and if you then decide not to file bankruptcy, you’ll end up paying back that debt with interest. Generally, you could have wiped them out in bankruptcy and not have had to make those payments.

Does The Kind Of Debt I Have Determine Whether Or Not I Should File a Bankruptcy?

The type of debt, as well as the amount of debt, are factors that go into whether or not to file a bankruptcy. There are certain times when someone’s debt is all student loans, so bankruptcy isn’t going to be beneficial. At other times, they have a variety of debts, like a mortgage, car loans, credit cards, and medical debt, so bankruptcy may be more helpful.

What Will Happen To My Home And Car If I File For Bankruptcy?

Most people are going to need to pay for their car and their home, just as they were doing prior to filing bankruptcy. Then, they would keep their home and car. There are certain circumstances where people are behind on their car or behind on their house and they want to be able to catch it up, and that would be possible by filing a Chapter 13. Then, you’d be able to save your home, save your car, and have the payments made through the reorganization, so that those assets are still yours. If you don’t want to keep the house because there is more money owed on it than it’s worth, you have the option to allow the creditor to take it back and get rid of that debt in the bankruptcy.

For more information on Common Reasons For Filing Bankruptcy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling Eric A. Stamps, Attorney at law, Stamps & Stamps Law Offices at (937) 247-6447 today.