What You Need To Know About Claiming Bankruptcy

Although claiming bankruptcy is never an easy decision, doing so is one of the few ways that you can wipe the slate clean when it comes to your financial mishaps. Every day, thousands of people just like you receive dozens of calls from aggressive creditors that are looking to get their money back. Of course, none of these calls are enjoyable, and each adds up to produce a general feeling of anxiety and worry that plagues the lives of the indebted. If you think a bankruptcy claim might be the best option for debt reduction, it’s important to consider the many intricacies involved in the filing process so that you can know where to start. It’s important to ask as many questions as possible before making the decision to claim bankruptcy, since doing so will be one of the most significant decisions you’re ever likely to face. One of the best ways to find out whether or not the personal bankruptcy process is right for you is to take our free bankruptcy evaluation. The following list represents some of the most common questions people have when claiming bankruptcy.

1.     Will a Bankruptcy Claim Affect my Credit? Unfortunately, the simple answer is yes, your credit will be affected with any bankruptcy filing, though there are some things you can begin doing right away to begin the repair process. You should have a personal recovery plan that includes a gradual rebuilding of credit after the bankruptcy has been processed, which can take from 7-10 years depending on whether you file Chapter 7 or Chapter 13. The type of bankruptcy protection you seek can be determined through a consultation with a licensed professional.

2.    Will Claiming Bankruptcy Affect my Current Employment? No, filing bankruptcy should not affect your employment, nor should it affect future employment unless the potential employer searches through your credit history. This is great news for many people that wish to keep their personal financial information private.

3.    Can an Employer Discriminate Against you for Filing? As mentioned previously, the answer is no. An employer cannot legally discriminate against you for filing bankruptcy.

4.    What Happens to Student Loan Debt when Bankruptcy is Filed? Most likely, you will not be able to get away from student loan debt repayment unless the debt creates an “undue hardship” on you. Before going down this road, however, it’s important to understand that this form of debt relief is extremely difficult to acquire. In the end, you will be at the mercy of the bankruptcy court.

5.    Am I in Danger of Losing my Car? The answer to this question depends on the state you reside in, since some states have an exemption in place that will allow you to keep your vehicle during the bankruptcy process. In general, you will have a much better chance of holding onto your car if you don’t owe much on the loan. A licensed bankruptcy attorney can provide the insight you need to answer this and other bankruptcy questions.

6.    How Might my Home be Affected? Houses generally fall under somewhat different regulations, so it’s critical that you consult an attorney before making any assumptions. An attorney can also help you determine the type of filing to choose which will have an effect on how your home is handled during the process.

7. How Much Does It Cost To File? The amount you pay will depend on whether you choose to file alone or through an attorney or Bankruptcy Petition Preparer (BPP). Without an attorney you should expect to pay a few hundred dollars, though hiring an attorney can add $1,000 to $2,000 on top of this amount. There are also opportunities for cheap bankruptcy filing if you know where to look.

Deciding how to claim bankruptcy is not an easy decision, particularly since there are so many different stipulations depending upon the state you live in and the individual circumstances you find yourself in. The best thing you can do for yourself is to find a certified professional or bankruptcy service company that can assist you in the filing process and that can help you decide how to go bankrupt. You want someone with a solid track record, and someone that you can trust to handle this delicate situation in your life. Although you will be required to pay bankruptcy attorney fees to secure any type of legal representation, doing so will make the entire process easier. For more bankruptcy information, please feel free to browse our comprehensive site.

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  • How to Claim Bankruptcy