What Can’t Bankruptcy Accomplish For Me?

Bankruptcy cannot get rid of student loans, except in very rare circumstances. It also cannot get rid of most tax debts, child support, or spousal support.

How Much Debt Do I Have To Have Before I File For Bankruptcy?

Everyone’s circumstance is different. There are people who file bankruptcy with $5,000 of debt. There are other people who file bankruptcy with $100,000 of debt. It’s really specific to your individual needs. Someone who has a part-time job and very little means to pay the debt back may want to file on just $5,000. If you have expenses that exceed your income, even if it’s a higher level of income, then small amounts of debt are still something you would consider filing bankruptcy for.

Can I Own Anything After Bankruptcy?

Most people who file bankruptcy own the same things they owned before filing for bankruptcy. They don’t typically lose any of their assets. Also, for people who are looking to purchase something, such as a car, most can purchase a car right after filing bankruptcy. For people who want to get a house after bankruptcy, a lot of lenders would like to see two years post-bankruptcy with you re-establishing your credit by paying your bills in a timely manner. When filing a bankruptcy, if you want to keep the assets you have or you want to obtain assets, it usually puts you in a better position, from a credit score standpoint, to be able to accomplish that.

I Am Getting Divorced. What Should I Do About My Bankruptcy?

It is important that you are in contact with your bankruptcy attorney to discuss when is the best time to file bankruptcy and the best time to file a divorce, how to properly plan, and what each means to the other. Divorce and bankruptcy kind merge together and one can negatively impact the other or positively impact the other. It’s important that you have someone there to guide you through that.

Can I Apply For A New Credit Card Once I Have Filed For Bankruptcy?

Most of my clients get offers in the mail within a week or two of filing bankruptcy, asking them to apply for credit cards. It’s just a matter of being careful to make sure you don’t overextend yourself because it’s important, after the bankruptcy, that you position yourself to have a better financial future and not to get back into those habits that caused bankruptcy.

Will I Have To Go To Court If I File Bankruptcy?

There is a hearing in bankruptcy but not in a courtroom. It’s a court building but it’s in a separate room and is not with a judge; it’s with a trustee. It’s a much more informal process. The hearing is 10 minutes long, or less, and nothing to be worried about. Your attorney will be there with you, walking you through it.

Can I Keep Any Of My Old Or Current Credit Cards Once I File Bankruptcy?

Most credit card companies will close the credit account once you file bankruptcy. If it’s really important to try to keep a specific credit card, you do have the ability to contact that company to see whether or not they are willing to work something out with you. If there is a large balance on it, I would never recommend doing that because then, you are paying that amount, plus interest, just to keep the card open. If you have a small credit card balance or if you have a credit card that has no balance, sometimes the creditor is willing to allow the credit account to remain open.

How Can Filing A Bankruptcy Help With The Creditors?

The first thing a bankruptcy does is notify creditors that you are protected by the bankruptcy code. That means they are forbidden from contacting you in any way. They are not allowed to call you, send you a letter, text you, or anything else. Also, if there are any proceedings in court, they have to stop immediately, whether it’s a garnishment, an attempt to put a lien on your home, or any other process. It’s very protective of you, to make sure that you do not have to deal with the stress of creditors any longer.

For more information on Debts Unaffected By 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.