Living with debt can be difficult. If you are falling behind on your bills and are in debt, you may be considering bankruptcy. This can be a way for you to start fresh and put your past financial mistakes aside. It is important that you understand the process of bankruptcy and the rules associated with it as well as its consequences.
Below are some answers to common bankruptcy questions.
Who can file for bankruptcy?
Most individuals and businesses are able to file for bankruptcy. Each chapter of bankruptcy has different laws and requirements that must be followed in order to qualify.
Will all of my debts be cancelled?
No. With Chapter 7 bankruptcy, most of your debt are forgiven. Student loans, some tax debts, criminal fines, and child support cannot be cancelled. With Chapter 13 bankruptcy, a repayment plan will allow you to pay off your debts. Debts are not cancelled, but are paid, in whole or in part, through a plan.
Am I able to keep my property?
This depends on which chapter of bankruptcy that you file and the value of your assets.
With Chapter 7 bankruptcy, most of your debts are erased. In exchange for this, your non-exempt property can be taken so that it can be sold to pay creditors. Certain property is exempt from collection. This often includes cars, retirement accounts, clothing and furniture.
With Chapter 13 bankruptcy, you follow a payment plan in order to pay back your debts. As long as you keep up with your payments, you are able to keep your property.
Will bankruptcy stop creditors from harassing me and my family?
Yes. The filing of your bankruptcy petition puts an automatic stay in place, which requires creditors to stop their collecting efforts until the bankruptcy is over.
You can also stop debt collectors from contacting you. The Fair Debt Collection Practices Act allows you to request that creditors stop contacting you. All you have to do is send a letter requesting no communication or tell them you are represented by a bankruptcy attorney.
How long does bankruptcy stay on my record?
Bankruptcies remain on credit reports for 7 to 10 years.
If you are looking for an experienced law firm to guide you throughout a bankruptcy case, contact Geygan & Geygan.
Call (513) 793-6555, or email firstname.lastname@example.org. Our office is located in the Kenwood area of Cincinnati. CALL NOW!