How Often Am I In Contact With You Throughout My Bankruptcy Case?
I meet with people three times before their case is filed. Some don’t have any other need to talk to me during the process until we have a meeting of creditors. Others have questions that pop up and they are in contact more frequently. Sometimes something comes up that wasn’t expected, like a car accident or a change in jobs. In those instances, you should contact me as soon as possible.
How Soon After The Bankruptcy is Complete Must I Complete The Post-Bankruptcy Course?
We prefer that you take the post-bankruptcy course prior to the hearing. If you do not, you have 45 days from the first date that the meeting of creditors is scheduled to complete it. If the meeting of creditors gets postponed for any reason, you still have to use the original date.
What Are Differences Between Credit Counseling, Consolidation And Bankruptcy?
The bankruptcy process has much more advantages than other types of debt relief processes. Oftentimes, those programs don’t tell you all the different aspects of what is happening. They will tell you that if there are any court proceedings they are going to handle it. At the end of the day, they are not able to handle it and you can be garnished. In a bankruptcy, the garnishment has to stop. Federal law prevents any garnishment from continuing. If you are able to get your bankruptcy filed prior to the garnishment starting, it will never start.
It is the same situation with foreclosure. The credit counseling or debt consolidation program may tell you that they are working with your bank and not to worry about it. Then, you end up losing your house. There is nothing requiring creditors to cooperate with credit counseling or debt consolidation. In a bankruptcy they don’t have any choice. Creditors must cooperate and follow the bankruptcy code. One of the biggest advantages of bankruptcy is that in most instances unsecured debts, such as credit cards and medical bills, do not charge interest. In a debt consolidation or credit counseling program, you almost always have some level of interest owed. Another consideration is tax consequences. If a debt program is able to settle a debt for you at a cheaper amount than you originally owed, you have to pay taxes on the amount that it was reduced by and you will receive a 10-99 for miscellaneous income. That does not happen in a bankruptcy.
How Long Does It Generally Take Someone To Get Their Life Back On Track Following A Bankruptcy?
Part of our closing process is to give our client information that explains the things you should be doing to re-establish your credit. You should definitely be taking out some type of loan, otherwise your credit score just sits dormant. Most people can get a car loan right after a bankruptcy and sometimes, even while in a bankruptcy. Other people get very small credit cards and then pay them off each month. As long as you are paying on the debt that you establish, it’s going to be beneficial to re-establishing your credit score. Most of the time, one year after a bankruptcy, your credit score is actually around 80 points higher than it was prior. Once all the negative is cleaned up, re-establishing your credit score is a lot easier.
If you miss a payment, however, it has a negative effect. You don’t want to do that. You also don’t want to get too much credit, because that is what led to the bankruptcy in the first place. Make sure that you keep it to a reasonable amount, then pay it off when the bill comes in. As far as how long it takes for people who are trying to get a mortgage, most lenders want two years from bankruptcy, along with established income. The VA or FHA oftentimes will want three years.
What Should People Be Aware Of When They Are Involved In The Bankruptcy Process?
It is imperative to hire a bankruptcy attorney. When someone comes in, I’m going to go through the information they need to start the process and complete it successfully.
For more information on Contact With Attorney During Bankruptcy Case, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (937) 247-6447 today.
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