Bankruptcy is a form of debt relief that many people could take advantage of, but do not. They have heard many urban legends associated with bankruptcy, or they are just unfamiliar with the benefits. Sadly, this misinformation or lack of information prevents many people from benefiting from bankruptcy protection.
In an effort to help eliminate fear or confusion about bankruptcy, local bankruptcy lawyers have answered some of the most common questions about this process.
Will Bankruptcy Help Stop Harassing Phone Calls And Letters From Bill Collectors?
Yes. When you decide to get personal bankruptcy help, your attorney will notify each of your creditors that you intend to file for bankruptcy protection. At that time, they must stop contacting you about the debt.
Can I Keep My Home If I File Bankruptcy?
In most cases, yes. Chapter 13 bankruptcy protection will allow you to restructure your debts so that you can repay them over time and keep your home. Your attorney will explain to you in detail how this chapter of bankruptcy can protect your home.
Will I Ever Be Able To Purchase A Home If I File For Bankruptcy?
This is one of the most common questions heard in our Concord law firm. The answer is yes. Most lenders will consider giving you a mortgage after about 18 months have passed since you filed bankruptcy. You must maintain good credit during that period. Each lender will differ, so you will need to shop around.
Can I Claim My Student Loan Debt On My Bankruptcy?
No. Some types of debts do not qualify for bankruptcy. These include:
• Student loans
• Tax debts
• Child support
• Court ordered payments
• Some lawsuit settlements
Your local bankruptcy lawyers will discuss with you which debts will qualify for bankruptcy protection.
Can I Force My Spouse To File Bankruptcy?
No. You can file bankruptcy on your personal debts without including your spouse. However, any debts that have both of your names on them cannot be included in the bankruptcy action. It is in your best interest to try to work these issues out prior to filing so that you receive the most benefits from the bankruptcy.
Is Chapter 7 Bankruptcy The Worst Thing That Can Happen To My Credit?
No. Your credit score will be affected. However, as you continue to establish good credit habits after the bankruptcy has been discharged, your credit score will improve. You must also consider that countless bill collection actions on your credit report will have the same impact. At least if you file for protection, these debts and harassing phone calls will be gone.
Where Do I Go For Personal Bankruptcy Help?
If you find that you need to file for bankruptcy protection, you are encouraged to schedule an appointment with our Concord NC law firm to discuss your options.