Common Questions
What kind of bills can I wipe out in bankruptcy?
Generally, if you go through bankruptcy, your goal is to wipe out your unsecured debts. Your unsecured debts are typically major credit cards, medical bills, or any other money you may owe someone that is not secured.
Can I keep one of my credit cards?
Some of your credit car companies may actually ASK YOU if you want to keep the cards!
Can I keep my house and my car?
Many people filing bankruptcy can keep their homes, their cars, and all of their property.
Can I get rid of taxes in bankruptcy?
You may have heard that you cannot wipe out taxes in bankruptcy. THAT IS NOT ALWAYS TRUE! Under certain conditions you may be able to wipe out taxes in bankruptcy.
Can I get rid of student loans in bankruptcy?
You may have heard that student loans cannot be wiped out in bankruptcy. That is not always true. You may be able to wide out student loans under bankruptcy.
How long does it take and who will be told?
Typically, you can expect your case to take three to four months from the day you file your papers (known as the bankruptcy petition) 'till the day your debt is discharged. For the most part, notices will only be sent to those you owe money.
When will those ruthless bill collectors stop calling?
In most cases, the day you file your bankruptcy, a restraining order goes into effect against your creditors. This restraining order is called the automatic stay. Generally, the automatic stay prohibits any attempt by a creditor to try to collect a debt which you had before you filed your bankruptcy.
Do I have to go to court?
You will need to attend a short hearing about 4-6 weeks after you file.
Do I have to talk to a judge?
Your bankruptcy hearing is typically run by a trustee, not a judge. That means you can be more relaxed since things are less formal. In fact most trustees sit at a table with you, rather than those intimidating court rooms you have seen on T.V.
What will happen at my hearing?
At your hearing the trustee, and any creditors who show up, get the chance to ask you questions regarding your petition.
When will I know when my debts are discharged
Approximately 60 days after your hearing, the court will mail discharge notices to you, your attorney, and all of your creditors. The discharge notice will say that your dischargeable debts have been discharged.
What if I have used my credit cards just before bankruptcy?
If you intentionally run up your credit cards in the hopes of wiping them out in bankruptcy, you have committed fraud. However, if you made purchases for reasonable living expenses it may not be fraud.
Can I go to jail if I can't pay my bills?
Typically, you won't go to jail because you are unable to pay your bills.
What affect will bankruptcy have on my credit?
Bankruptcy may appear on a credit report for up to 10 years. But, that doesn’t mean you can’t obtain new credit during that time.
Can I rebuild my credit after bankruptcy?
Yes. You may have heard about people who have filed bankruptcy two or three times. Maybe they are the best proof that people can actually get credit after bankruptcy. If they weren’t able to get credit after their first bankruptcy, they would not have had to file bankruptcy again!
What is a Chapter 13 reorganization?
A chapter 13 is a type of bankruptcy where you reorganize your finances and repay some, or all, of your debts over time.