Bankruptcy FAQ & Answers
Bankruptcy is a multi-dimensional legal option for debt relief. There are distinct differences in personal and business bankruptcy filings, and between how the process works for a chapter 7, 11 or 13 bankruptcy.
A bankruptcy solution is granted after successful completion of a Means Test to qualify for filing.
Here are answers to common questions about bankruptcy:
Can anyone file for bankruptcy?
Theoretically yes; however, you must pass a Means Test to determine which chapter, if any, you may file.
How long does it take for a bankruptcy process to be completed?
It varies depending upon your circumstances and the time taken by the court. A good rule of thumb is about 2 months from filing to discharge of debts.
Can I file for bankruptcy without an attorney?
Yes you can; however it is not recommended. If you misfile, have paperwork errors or miss deadlines you could have your case dismissed and be unable to re-file. Additionally, certain errors could open you up to federal criminal charges. Bankruptcy is a legal process for which you should hire a qualified bankruptcy lawyer who has experience with these legal processes.
Can I keep my personal property?
In most cases, yes, you can keep personal property. You can almost always keep clothing, jewelry, tools and furniture. The court may require the sale of luxury items such as water craft, motorcycles, aircraft, etc.
What is a reaffirmation agreement?
A reaffirmation agreement is a binding legal document which obligates you to repay a specific debt. You do not have to sign this agreement however you may want to do so in certain cases.
Will a bankruptcy always be on my credit history?
A bankruptcy may remain on your credit history report for 7-10 years. After it does drop off you should not lie on any loan application about having had a bankruptcy as this could be considered loan fraud.
After bankruptcy should I hire a Credit Repair company?
NO! You can rebuild your credit without hiring any company. Many credit repair services are scams. You can usually get car loans or certain types of unsecured loans, and prompt payment of these debts will get your credit score moving up.
