Can I Even Afford To File Bankruptcy?

There are legal and filing fees associated with the filing of a bankruptcy petition. Those fees are generally far less than what you would be required to pay back had you not filed bankruptcy, so from a financial point of view, it’s almost always more advantageous to file bankruptcy than not. I offer very reasonable rates as well as different payment plans that my clients can afford.

Can I Transfer Money Or Assets Before I File For Bankruptcy To Friends Or Family?

This depends on the specifics of a particular case but generally, that’s not a good idea. If the trustee finds out about a transfer, they can try to vacate the transfer as a fraudulent conveyance. Any payments made to your family or friends for debts that you owe them could also be considered payments to insiders, which the trustee could also try to rescind as well.

Can I Charge Up A Lot Of Credit Card Debt Before I File?

I would not advise a client to charge up a lot of credit card debt just prior to filing for bankruptcy. These charges could be considered fraudulent if you were intending to file bankruptcy and a US trustee could file criminal charges against a person who violates the bankruptcy laws in that fashion.

What Are The Short And Long Term Negative Effects Of A Bankruptcy?

The short term negative effects in the filing of bankruptcy are generally related to the decreased credit ratings that a person would have. The lowered credit rating would be diminished over time once the bankruptcy case is over and the client has established a new credit history with a new low credit limit credit cards. Of course, it depends on using those cards responsibly. The negative effects of the bankruptcy on the credit report generally get diminished somewhat in the year after the bankruptcy case is over. I don’t think there are many long term negative effects of the bankruptcy other than the credit rating.

How Long Do Bankruptcies Last?

A Chapter 7 bankruptcy case generally lasts about three or four months from beginning to end. Most of that time is statutory waiting periods and there’s not a lot to do during those periods. I do guide my clients through every step of the process and tell them exactly what they need to do and when they need to do it in order to obtain a discharge.

Should I Consolidate Debt Or Explore Other Options Before I File Bankruptcy?

My position is generally unless there is some impediment to filing for bankruptcy, it’s much easier faster and cheaper to file and to not file an attempt to consolidate your debts.

Does The Kind Of Debt I Have Determine Whether Or Not I Should File Bankruptcy?

Yes, most personal debt is dischargeable in bankruptcy. That would be personal loans, credit cards, old phone bills, old car leases, old car loans. Things of that nature are generally dischargeable. There are some types of debt that are not dischargeable, obligations relating to alimony and child support, taxes, school loans, any kind of criminal fines. Those are generally not dischargeable, so the type of debt does have an impact on whether or not a person should file for bankruptcy.

What Will Happen To My Home And Car If I File Bankruptcy?

This depends on the particular case but generally, a person is able to keep their home and their automobile if they file for bankruptcy. There are certain exemptions that apply in a bankruptcy case that prevent a home or an automobile from being affected usually.

What Can Bankruptcy Not Do?

A bankruptcy will not discharge debts that are related to alimony and child support, school loans, criminal fines, tax debt. Most other personal financial obligations are dischargeable in bankruptcy case.

How Much Debt Do I Have To Have Before Filing For Bankruptcy?

This is all relative to the individual and how much income they have coming in versus the amount of monthly personal debt service they are paying.

Can I Keep Any Of The Current Or Old Credit Cards Once I Have Filed?

Generally, all your creditors must be listed on your petition when you file bankruptcy. This prevents one creditor getting preferential treatment over another creditor. Even if you don’t owe a credit card any money, the credit card may still be closed because you filed bankruptcy on some other credit cards. I see this happening in some cases, not all but it is possible that a credit card with a zero balance, that is not listed in the petition gets closed anyway because creditors do periodic checks of credit.

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