The Ten Most Frequently Asked Questions About Bankruptcy

Most major life decisions are only made after careful thought and consideration. In order to find out the information you need to make a big decision it is okay to ask questions and do a little bit of research. Only after you have gathered all of the data you can and have consulted a trained professional can you make an educated choice about what is best for you. The answers you need depend on the issue you are facing, and if that issue is how to get out from too much debt you need to partner with a qualified debt management and bankruptcy attorney. An experienced bankruptcy attorney will be able to help you identify areas of concern and put those concerns to rest.

The ten most frequently asked questions about what happens when you file for the protection of bankruptcy are:

•         Will I have to give back my stuff or can I keep it? The answer to this question depends on whether you are willing and able to continue making payment for certain things. Most everyone needs a car and a house and you are able to stay in your home and keep driving your car when you file bankruptcy, but you do have to make the payments on the loan to do so.

•         If I can’t pay my house or car payment now, how will I be able to do so after I file bankruptcy? The benefit of filing bankruptcy is that it allows you to focus on the debts that matter, like your car and house payment. Other debts are either significantly reduced or eliminated altogether. When you no longer have to pay your unsecured credit card debts you have more money to put towards your house or car payment and sticking to your budget suddenly becomes something that is doable.

•         Will my creditors still call me for payment? Filing bankruptcy puts an automatic stop to all collection calls, so from the instant you file your lenders are no longer allowed to contact you about their debt.

•         What is a reaffirmation agreement? A reaffirmation agreement is like a new loan, it is your agreement to continue to pay for a debt even after the bankruptcy case is over.

•         How long will my case take? This depends on what type of case you file, with a Chapter 7 the case is over in about 120 days and a Chapter 13 can last as long as 5 years.

•         Will my credit be ruined forever? While filing bankruptcy is a mark on your credit you will be surprised at how quickly you can start rebuilding your credit simply by paying things on time. Now that you owe less because the bankruptcy has eliminated some of your debt you will be in a better position to pay all of your bills each month and this will help to improve your credit score.

•         Can I still get a loan if I file bankruptcy? You would be surprised at how quickly lenders are willing to approach you and offer loans or extensions of credit after bankruptcy. But be careful, you do not want to fall into the trap of predatory lending and take on too much debt again.

•         Who is the Trustee? The Trustee is an impartial person appointed to oversee the administration of your case.

•         How often can I file a case? This depends on the type of case you previously filed and how that case ended.

•         What are the social consequences of filing bankruptcy? The stigma once associated with filing bankruptcy is long gone and hardly anyone looks at filing bankruptcy as a failure, nor is it frowned upon. The choice is personal and if it works for you then it is a step worth taking.

We understand it is hard to make a decision about whether filing bankruptcy is the right thing to do for your family, and are here to help you decide. For answers to all of your bankruptcy related questions, call us today.

If you have more questions about bankruptcy or need help deciding what to do about overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.