What questions should I ask when filing for bankruptcy?
Here are five questions to ask yourself before you start the bankruptcy process.
- Chapter 7 or Chapter 13? There are two types of personal bankruptcy: Chapter 7 and Chapter 13.
- Can you afford it?
- Will it actually help?
- Can you qualify for bankruptcy?
- Will you be able to live with the effects for years to come?
What questions are asked in Chapter 7?
Common Questions Asked About Chapter 7 Bankruptcy
- What is Chapter 7 and how does it work?
- What is a Chapter 7 discharge?
- Who is not eligible for a Chapter 7 discharge?
- Who may file under Chapter 7?
- How much does it cost to file under Chapter 7?
- Where is a Chapter 7 case filed?
What debts does bankruptcy not cover?
10 types of debt that won’t go away with bankruptcy
- Credit card debt.
- Medical bills (Studies show about 62% of bankruptcies are linked to medical debt)
- Overdue bills turned over to collection agencies.
- Personal loans.
- Utility bills.
- Business debts.
- Unpaid/overdue taxes.
How long does it take for creditors to be notified of bankruptcy?
After you file the bankruptcy petition, the court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes about one week or less.
What questions does a trustee ask?
9. A Trustee Might Ask Other Questions.
- How did you value your home?
- How did you value your car?
- Do you have any claims against anyone?
- Are you expecting an inheritance?
- Did you recently sell any property.
- Have you transferred any of your assets?
- Is the Tax Return that you have supplied a correct copy of your tax return?
Can creditors collect after Chapter 7 is filed?
Once you file for bankruptcy, an automatic stay goes into effect. An automatic stay specifically states that creditors cannot contact you to collect debts after you’ve filed for bankruptcy. It protects you from harassing phone calls, emails, and letters.
How much debt should I have to file bankruptcy?
There is no minimum debt to file bankruptcy, so the amount does not matter. Examples of unsecured debts include credit card debt, cash advance (payday) loans, and medical bills. Secured debts: If you are behind on a house or car payment, this may be a very good time to file for bankruptcy.
Do I have to answer yes to bankruptcy question?
Applications for employment or bankruptcy may ask if you have ever filed for bankruptcy. In that case, you should answer yes, even though a bankruptcy 10 years old may no longer appear on your credit report. Failing to disclose bankruptcy when asked about it is the same as lying on the application.
What to ask a bankruptcy attorney?
After determining your primary issue, the lawyer will assess whether you’re qualified to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy , by asking questions about your family size, income and assets, the type of debt you owe, and any recent purchases or property transfers.
Should you consider bankruptcy?
If your debts are non-dischargeable, there is no reason to file for bankruptcy. Bankruptcy may not be the best plan if you will lose property such as your home, car, pension or insurance. These losses, coupled with the other harmful effects of bankruptcy, may make bankruptcy a bad idea in your situation.
What are facts about bankruptcy?
Bankruptcy Facts: Taxes, child support, alimony, and student loans cannot be discharged in bankruptcy. Although bankruptcy provides a fresh start, debtors are required to give all property determined to be non-exempt and requested by the trustee so assets can be liquidated and the proceeds used to pay creditors.