When you are stuck in an endless cycle of incurring debt and getting calls from creditors, you may be overwhelmed and stressed. At Thompson Law Group, P.C., we want to help alleviate that stress and help you move on to the next part of your life. We focus on you and your case, and we will take the time to fully understand your circumstances. We understand how the system works and will do what we can to help you. We know bankruptcy can be complicated, so we compiled a bankruptcy FAQ to help you.
What is bankruptcy?
Bankruptcy is a way for people who are struggling to pay their debts to get a second chance with their finances. When you file bankruptcy, it stops creditors from harassing you and gives you a chance to breathe.
Is filing for bankruptcy expensive?
Court filing fees for bankruptcy costs vary depending on the chapter:
You may be able to break this onetime payment into smaller ones over time.
Will bankruptcy destroy my credit?
Filing for bankruptcy may not tank your credit a ton, because your score may already be low due to missed payment and high credit amounts. A bankruptcy will appear on your credit report for up to ten years, but because you have less debt, you can start building it back up over time.
Will bankruptcy get rid of my student loans?
Subject to some exceptions (including exceptions regarding private loans, trade schools and other unaccredited colleges), student loans are usually not allowed to be forgiven in bankruptcy, unless it is not insured or guaranteed by the government or the student loan puts you or your dependents under extreme financial duress.
Will I lose my home if I file bankruptcy?
In most cases, you get to keep your home after you file for bankruptcy as long as it is fully exempt. However, if you gave a creditor a mortgage on your home, you may still be on the hook for those payments, and if they are not made, you may lose your home.
Will bankruptcy get rid of my alimony and child support debt?
No. If you file for bankruptcy, you will still be required to pay child support, alimony, or any fines or taxes that are associated with them.
What other debts will I still have to keep after bankruptcy?
When you file for bankruptcy, you will be able to get rid of most of your debt. However, you will not be able to get rid of:
- Alimony or child support
- Debts you did not list
- Loans you got under false pretenses
- Debts acquired from illegal activity
- Debts to a college or government
How long after I file for bankruptcy can I get a credit card?
You will be able to get a credit card fairly soon after, but it will most likely not be a traditional credit card. You may get a bank or debit card that operates as a credit card, or you may be able to keep your old card if the holder allows it.
Will my co-signers be off the hook if I file for bankruptcy?
If you file for bankruptcy, your co-signer may still have to pay back your debts.
If I am married, do I have to file bankruptcy with my spouse?
No, but if you file just by yourself, your spouse may be on the hook for the debt. If you file together, you will be able to double your exceptions. Each situation is unique.
Will bankruptcy stop creditor harassment?
Yes. Once you file bankruptcy, debt collectors have to stop calling. Once the creditor is notified of your bankruptcy, they are required by law to stop calling.
Struggling Under Debt? Give Us A Call Today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.