How hard is it to re-establish credit after filing bankruptcy?

If you carefully work to rebuild your credit after your Chapter 7, Chapter 11 or Chapter 13 bankruptcy, you could qualify for almost-normal rates, even a mortgage, in a year after your discharge from your bankruptcy! More…

How long will a bankruptcy stay on my credit report?

Usually 7 to 10 years, but bad credit stays on too. With bankruptcy you have wiped your slate clean and get to start again. With bad credit you have to wait for it to drop off your credit report. We have found that almost all of our clients see a higher credit score (sometimes dramatically higher) 1 year after filing their bankruptcy.

How does bankruptcy affect my credit?

It hurts your credit, but if you are at the point of considering bankruptcy, chances are your credit is already affected. Bankruptcy allows you to start to rebuild your credit. We have found that most of our client credit scores go up (sometimes dramatically) 1 year after discharge.

Will filing for bankruptcy stop the creditors from calling and harassing me?

Yes. When your bankruptcy is filed the “automatic stay” goes into effect. This stay prohibits creditors from trying to contact you to collect on debts. Think of it as all your creditors and debts going into limbo. More…

Do I have to list all the accounts I owe, in my bankruptcy filing, or can I keep some?

By law, you must include all the debts you owe in your bankruptcy petition and schedules but you can reaffirm on some if you wish. Usually clients reaffirm on cars and houses, rarely on credit cards. We have found that all the credit card companies immediately close the credit accounts as soon as they are informed of the bankruptcy so it is not usually in your best interest to reaffirm these debts.

Will I lose my house or car when I file bankruptcy?

In a Chapter 7 as long as you are current in your house and car payments they will not take those items. In a Chapter 13 the arrearages (the amount you are behind) is calculated into the plan payment so that when you successfully complete your Chapter 13 all debts are either paid off or current.

How long does the bankruptcy process take before debts are discharged?

In an uncomplicated, non asset Chapter 7 bankruptcy proceeding debts can be discharged in a little as 3-4 months from your date of filing. Chapter 13 bankruptcies involve repayment plans that can run from three to five years before the debts are discharged.

Will filing for bankruptcy allow me to modify my child support payments?

Possibly. You might be eligible for a modification of support if your income has drastically changed due to layoff or illness, etc.

Is child support dischargeable in bankruptcy?

No. You cannot avoid your child support obligation by filing bankruptcy. Also, any debts resulting from ‘in the nature of support’, ie debts resulting from care of the child, including medical bills, are also ineligible for discharge.

Will bankruptcy stop my foreclosure?

Facing foreclosure is one of the most heart wrenching events that a homeowner will face in their lifetime. Just the idea of losing the very home that has a lifetime of memories contained in its walls is enough to break down even the strongest among us. More…