- December 30, 2023
- Thomas Adam
- Bankruptcy
The decision to file bankruptcy is deeply personal and one that comes with many questions. It is best to learn as much as you can about bankruptcy so you have a full understanding of it before you make a decision. An experienced bankruptcy attorney will help guide you through the process.
What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
Chapter 7 and Chapter 13 are two types of individual bankruptcy filings. Chapter 7 requires a liquidation of non-exempt assets for repayment of debts. Once the Chapter 7 bankruptcy is complete, your old debts are done, and you will no longer owe them. Chapter 13 bankruptcy allows you to consolidate your debts and get on a repayment plan that will repay your debts over the next three to five years. If you are unemployed, you will likely need to file Chapter 7. If you have a job, you may qualify for Chapter 13.
Will Bankruptcy Help Me?
If you are in serious debt, it is likely that bankruptcy will help you resolve it. Unless you are able to get out of debt on your own, you may benefit from filing bankruptcy. If you lose your job or don’t have enough income to pay your bills, bankruptcy may be an option. When you file bankruptcy, you will feel immediate financial relief and will be able to get a fresh start. As soon as you go through bankruptcy, you will be able to start slowly rebuilding your credit.
Will I Lose My House in Bankruptcy?
You may be able to keep your home even if you file for bankruptcy. A bankruptcy could stop the foreclosure process. With Chapter 13, you may be able to get lower mortgage payments, which will help you as you move forward after filing for bankruptcy. If you file Chapter 7, you may still be allowed to keep your home depending on how far behind you are in payments and how much equity you have in your home, among other factors.
Will My Creditors Stop Calling Me When I File Bankruptcy?
One of the most stressful parts of being in debt is getting regular calls from creditors and harassing you for payments. As soon as you file bankruptcy, the calls will stop. Creditors must stop contacting you for payment once you file bankruptcy. According to the law, creditors cannot call you or contact you by email or by regular mail. They must contact you only through your attorney from this point forward.
Can I Include Student Loans in Bankruptcy?
Student loans are generally excluded from Chapter 7 bankruptcy. That means that even if you file bankruptcy for your other debts, you still must pay your student loan debt. There may be some other options available outside of bankruptcy to handle student loan debt. You can consolidate student loans in Chapter 13 bankruptcy.
How Long Will Bankruptcy Stay On My Credit Report?
The length of time bankruptcy remains on your credit report depends on the type of bankruptcy you filed. Chapter 7 will stay on your credit report for ten years. Chapter 13 stays on your credit report for seven years. The time starts at the time you file. While the action is part of your report, it may have a positive impact as well. New creditors will see that you took action to resolve your financial situation, and as you rebuild your credit, they will see that you are more financially responsible.
You probably have many additional questions about bankruptcy, and our knowledgeable legal team is here to help. Call us at Adam Law Group at ((904) 351-0743 to schedule an initial consultation to discuss bankruptcy.