| Bankruptcy |
Do you have questions about filing bankruptcy?Here are some frequently asked questions.What type of bankruptcy should I consider?Generally, there are three types of bankruptcy:
How often can I file bankruptcy?A Chapter 7 bankruptcy case can be filed eight years after the date of the previous filing. A Chapter 13 bankruptcy case can be filed at any time, a discharge is granted only if four years from the previous discharge.Will bankruptcy affect my credit?A bankruptcy can stay on your credit report for ten years. The older a bankruptcy gets, the less impact on your credit. However, often if you are behind on your bills, your credit is already bad, and a bankruptcy filing will improve your credit by improving your debt to income ratio.Can I lose my job for filing bankruptcy?No, federal law prohibits employers from discriminating against you because you filed bankruptcy.Does bankruptcy erase all debts?Yes, with exceptions. Generally a bankruptcy does not discharge student loans, alimony, debts not listed on your bankruptcy petition, mortgages or other liens, unless you surrender the property.What property can I keep?In general terms, an individual can exempt or protect $20,200.00 of equity in real estate, $3,225.00 of equity in an automobile, up to $10,775.00 in household goods or furnishings, and up to $1,350.00 of equity in jewelry. All approved retirement accounts, pensions, and 401Ks.Should I file a Chapter 13 bankruptcy or a Chapter 7 bankruptcy?Under a Chapter 13 bankruptcy a plan is filed showing a payment arrangement for paying of debts in a three to five year period. Individuals generally file a Chapter 13 bankruptcy to save a home from foreclosure or car. Persons generally file a Chapter 13 if they are behind on their house or some other debt but can catch up with payments over time. |