The Five Most Popular Questions About Bankruptcy - Answering Service Resources

Home
>
Debt Relief
>
The Five Most Popular Questions About Bankruptcy

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

In The News:

Boston Globe
Wave of attacks kill 16 in Iraq
Seattle Times, United States - 8 hours ago
The Abu Dhabi government announced the debt relief and the naming of a new ambassador to Baghdad shortly after al-Maliki began a visit to the wealthy Gulf ...
$7bn debt relief Gulf Daily News
Report: United Arab Emirates cancels Iraqi debt The Associated Press
UAE Vows To Forgive $7B In Iraqi Debt Evening Bulletin
Hot Air - CNN Internationalall 497 news articles

To Washington Legislators: Unconditional Debt Relief is Not
Modern Ghana, Ghana - Jul 6, 2008
Unconditional debt relief, as called for in the Jubilee Act perpetuates poverty rather than alleviating it. In fact, it rewards past reckless behavior. ...

Union Bank completes farm-loan waiver, relief programme
Hindu Business Line, India - Jun 30, 2008
MUMBAI: State-run, Union Bank of India, said on Monday that it has completed the implementation of farm loan debt waiver and relief scheme announced in the ...

NDTV.com
Debt relief Waiving, not drowning
Economist, UK - Jul 3, 2008
In Sikandrabad one farmer could not quite believe that the pink slip he had been given released him from 25000 rupees of debt. But others did not get the ...
Banks in JK identify 34000 beneficiaries for debt relief GreaterKashmir.com (press release)
Himachal government urges to Centre to look into debt relief ... myHimachal
SyndBank to waive Rs 1063 cr farm loan Business Standard
Navhind Times - NDTV.comall 81 news articles

The Associated Press
UAE cancels Iraq debt, names new ambassador
The Associated Press - 14 hours ago
The Abu Dhabi government announced the debt relief and the naming of a new ambassador to Baghdad shortly after Iraqi Prime Minister Nouri al-Maliki began a ...

Dhumal writes to FinMin for debt relief anomalies
Business Standard, India - Jul 3, 2008
... has sought removal of numerous anomalies in the Union government's debt relief scheme so that majority of farmers of the hill state could be benefitted. ...

Syndicate bank extends debt waiver relief to 3.93-lakh farmers
Hindu, India - Jul 2, 2008
The bank said it is confident of completing the total process of handing over debt waiver and debt relief certificates to the eligible farmers latest by ...
Kerala banks display debt waiver lists Business Standard
all 5 news articles

CARICOM advised on strategy for debt relief requests
Caribbean360.com, Barbados - Jul 4, 2008
They do not have the instruments available to them to give debt-relief to middle-income countries," he said at the 29th Heads of Government Summit in ...

99 Thousand Himachal Farmers To Get Rs 260 Cr Debt Relief Under ...
myHimachal, India - Jul 3, 2008
He added that 3789 other farmers had been provided a debt relief of Rs 16.83 Crores. Murgai said that all banks in the state had completed the ...

Washington Post
Spotlight on African aid at G8 summit; Canada singled out for ...
The Canadian Press, Japan - 14 minutes ago
The Organization for Economic Co-operation and Development reported in April that foreign aid by major donor countries slumped in 2007 as debt-relief plans ...
Mbeki to press G8 leaders on Africa Independent Online
G-8 Must Not Backtrack on Aid for Poor Countries, Charities Say Bloomberg
Broken promises sound off-note between G8 and Africa as meeting nears Gulf Times
Reuters - Toronto Starall 596 news articles

debt relief - Google News

Answering Service ResourceAnswering Service Resource