FAQ's on How to File for Bankruptcy

Do I Need to Hire a Lawyer?
Over the past couple of years, bankruptcy laws have changed, and it is getting harder to declare. Hiring a lawyer is certainly your best option. They know and understand all of your state’s bankruptcy laws and will make the process a lot smoother. You can represent yourself, or hire a paralegal to do the work for you, but hiring a lawyer is highly recommended.

Will I lose my Home?
Chances are great that you will not lose your home, unless it is your choice.

Do I Still Have To Pay My Student Loans?
Yes, student loans will still have to be paid in the majority of bankruptcy cases. There are certainly exceptions to this, but is very rare. Your bankruptcy attorney can help negotiate an easier payment schedule to repay your student loans.

What is the Difference between Chapter 7 and Chapter 13?
Chapter 7 is where all of your assets are sold off and your creditors are paid. With a Chapter 7 the remaining debt that wasn’t paid off by the liquidation of your assets is usually discharged. With a Chapter 13 bankruptcy, the court will order a trustee to work with your creditors and negotiate a repayment plan for your debts. Not all of your debts are dischargeable in Chapter 7 or Chapter 13.

How Long Will I have Bad Credit For?
If you are filing for Chapter 7 bankruptcy, the bankruptcy will remain on your credit report for 10 years. If you are filing Chapter 13, it will remain on your credit report for 7 years. This doesn’t necessarily mean that you will have bad credit for 10 years. You will find creditors who will offer you credit at a higher interest rate.

What is the Difference between Debt Consolidation and Bankruptcy?
With a debt consolidation, you are using a debt consolidation company, or an attorney to reorganize the repayment of your debts. There is usually one payment made to the company and they will dole out the individual payments to your creditor. Bankruptcy is where you are asking the courts to discharge the debts that you can no longer pay.

Will the Harassing Phone Calls Stop When I File for Bankruptcy?
Yes, at the point where you pay your deposit to your attorney, you will be instructed to refer all future calls to your attorney’s office. Indicate to the creditor that you are filing for bankruptcy. Your creditors will no longer be allowed to call you, or proceed with any further attempts at collecting money from you until your bankruptcy hearing.

How Do I Get Started?
If you are going bankrupt, or think you may be, the best thing to do is to get help from a professional.

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