The Five Most Popular Questions About Bankruptcy

WILL MY CREDITORS STOP HARASSING ME?

Yes, they will! By law, all actions against a debtor must cease once bankruptcy documents are filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments. Secured creditors such as banks holding, for example, a lien on a car, will get the stay lifted if you cannot make payments.

WILL MY SPOUSE BE AFFECTED?

Your wife or husband will not be affected by your bankruptcy if they are not responsible (did not sign an agreement or contract) for any of your debt. If they have a supplemental credit card they are probably responsible for that debt.

However, In community property states, either spouse can contract for a debt without the other spouse's signature on anything, and still obligate the marital community. There are a few exceptions to that rule, such as the purchase or sale of real estate; those few exceptions do require both spouse's signatures on contracts. But the day to day debts, such as credit cards, do NOT require both spouses to have signed.

Your bankruptcy lawyer will be able to guide you in this regard.

WHO WILL KNOW?

Chapter 7 filings are public records. However, under normal circumstances, no one will know you filed for Chapter 7. The Credit Bureaus will record your filing and it will remain on your credit record for 10 years.

WILL I EVER GET CREDIT AGAIN?

Yes! A number of banks now offer "secured" credit cards where a debtor puts up a certain amount of money (as little as $200) in an account at the bank to guarantee payment. Usually the credit limit is equal to the security given and is increased as the debtor proves his or her ability to pay the debt.

Two years after a discharge, debtors are eligible for mortgage loans on terms as good as those of others, with the same financial profile, who have not filed Chapter 7. The size of your down payment and the stability of your income will be much more important than the fact you filed chapter 7 in the past.

The fact you filed Chapter 7 or 13 stays on your credit report for 10 years. It becomes less significant the further in the past the filing is. The truth is, that you are probably a better credit risk after bankruptcy than before.

WHAT DOES IT COST?

Costs for filing your bankruptcy will vary depending on the type of bankruptcy you are seeking. The rule of thumb is that a consumer bankruptcy will cost approximately $200. This does not include attorney fees that can run between $700 and $1500 depending on the nature and complexity of your case. Many bankruptcy lawyers will give you a free initial consultation. You can keep the fees down by being well organized and well prepared. You may also be able to keep the fees down by not requiring the lawyer to attend the meeting of creditors with you. Check this with your lawyer. In some states such as Massachusetts, attorneys must attend the Section 341 meeting with the debtors otherwise attorneys are deemed to have NOT represented the debtors.

These fee quotes are mere estimates based on nationally reported averages and subject to variation and change. Please consult with your local bankruptcy court and with legal counsel on fees before commencing any action.

For more information, please visit www.mybankruptcycounseling.com

Nathan Dawson writes for http://www.mybankruptcycounseling.com

---

Mandatory Credit Counseling for Those Considering Bankruptcy

Most Americans are aware of the sweeping changes in U.S.... Read More

Do It Yourself Debt Relief

With mounting bills and unforeseen hardships, you may be considering... Read More

What the Mail on Sunday Said

Anyone considering Bankruptcy may have experienced fear after reading an... Read More

Bankruptcy 101

Bankruptcy still remains a mystery in the eyes of many... Read More

Whatever You Do....Dont Save Money!

No, that's not a misprint. Even though falling interest rates... Read More

Ten Ways to Get Out of Debt

1) Use your AssetsIf you have assets with some significant... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a... Read More

UK Debt When Moving Abroad

The idea of moving abroad to escape debt seems to... Read More

Learn How to Get out of Debt

Debt is becoming number one problem in the United States... Read More

Eliminate Your Credit Card Debt, But How?

Can a debt consolidation loan eliminate your credit card debt?... Read More

The ONE Law You Should Be Breaking

There is a law all smart people break.Parkinson's law.Parkinson's law... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through... Read More

Going Bankrupt in the World

It all starts by defaulting on an obligation: Money owed... Read More

Selecting A Credit Counselor; Asking The Right Questions.

When you find yourself thinking about using a credit counseling... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way... Read More

Are You Beating Up On Yourself About Debt?

When you hear the word "debt", whats the first thought... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit... Read More

Life on a Debt Management Program

Signing up for a debt management program is easy; it's... Read More

How to Avoid Bankruptcy

Bankruptcy is a legal way to offer folks with high... Read More

Debt Elimination 3

Planning To Achieve Debt EliminationOnce you have started the process... Read More

Debt Settlement

What is debt settlement?Debt Settlement is a process to settle... Read More

Debt Management - Is It the Right Choice For You?

Debt Management plans offer credit counseling clients a different and... Read More

Personal Debt Reduction Practices

Personal debt reduction practices, the steps people take to relieve... Read More

Utah, the Nation?s Bankruptcy Capital

Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection... Read More

What is Bankruptcy?

Personal bankruptcy is a legal way to give people with... Read More

Bankruptcy - The Easy Option?

Incredibly, since the changes in the bankruptcy law in April... Read More

Debt

We all know about debt. If you don't have too... Read More

New Bankruptcy Law Will Not Protect You from Identity Theft

Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More

Eliminating Credit Card Debt

The overwhelming task of eliminating your debts can often seem... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

Credit Repair? Its All Up to You

Log onto to a search engine such as google.com and... Read More

Repair Bad Credit Yourself

In March 2005, the U.S. financial services industry succeeded in... Read More