Bankruptcy FAQ’s – Citrus Heights Bankruptcy Attorney
1) When will I be discharged from bankruptcy?
The debtor is discharged three to five months after bankruptcy is filed. One of the main reasons for bankruptcy is to relieve and erase your debt and therefore get a fresh financial start. A bankrupt’s debt is erased when he or she is discharged and more than 99% of the bankrupts are discharged.
2) Will I ever get credit again?
Definitely! A lot 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. Two years after bankruptcy discharge, debtors are eligible for mortgage loans on terms as good as those of others, with the same financial profile, who have not filed bankruptcy. The fact you filed bankruptcy stays on your credit report for 10 years but it becomes less significant the further in the past the bankruptcy is.
3) Will the creditors stop harassing me?
Yes! By law, all actions against a debtor must stop once the bankruptcy documents are filed. They cannot initiate or continue any lawsuits, wage garnishees, or even call you demanding payments.
4) Choosing Which Bills to Pay
Although you’ll probably want to make your mortgage payments if you decide to file bankruptcy, it isn’t necessarily a given. Whenever your home is worth less than what you owe on it, you may just want to save the money for a deposit on a new place. However, if you intend to keep your home, be sure to maintain insurance and, if possible, pay real estate taxes. If you don’t, the lender may be able to foreclose even if you’re making payments. The same goes with your car. You’ll have to make your car payments if you tend to keep it but if it is worth less than what you owe on it, get rid of it.
If possible, you need to get current with your alimony and child support obligations. The consequences for neglecting these obligations are serious and many judges have adopted a zero-tolerance approach toward deadbeat parents. You also need to pay current income taxes. Taxing authorities will make your life miserable if you don’t, and penalties for not paying add up to an astonishing rate.
If you are having financial hardship, contact experienced bankruptcy lawyers at our law firm by calling (916) 971-88809. We offer FREE confidential bankruptcy consultation.
“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”