Bankruptcy FAQs
We offer assistance with the following:
Q. If I file bankruptcy, will my creditors continue with their collection efforts?
A. Upon filing a bankruptcy petition, the Court will issue an automatic stay. The stay prevents creditors from attempting to collect any pre-bankruptcy claim or from enforcing any pre-bankruptcy judgment.
Q. Can all debt be discharged?
A. No. It is the general policy of the courts to exclude certain categories of debt from discharge. Those categories include, but are not limited to, child support, alimony, certain unpaid educational loans and taxes as well as liabilities incurred as the result of fraud.
Q. Will bankruptcy affect my credit?
A. The Credit Bureaus will record your bankruptcy and it will remain on your credit record for 10 years.
Q. How long is the process?
A. Generally, debt is discharged 3-5 months after the bankruptcy petition is filed.
Q. If I filed bankruptcy in the past, can I file again?
A. Effective October 2005, the legislature increased wait periods between bankruptcy filings. If you have previously filed Chapter 7, you must wait 8 years before you can file again. If you have previously filed Chapter 13, the standard wait period for another Chapter 13 filing is 2 years. If you have previously filed a Chapter 7 and are now looking to file Chapter 13, the wait period is four years in between filings.
Q. Will filing for bankruptcy give me a new start with credit?
A. Not necessarily. A bankruptcy filing will serve as a negative mark on your credit report resulting in a negative impact to your credit score.
Q. If only my spouse file bankruptcy, will it affect my credit?
A. It will if you have one or more joint accounts.
Q. Can I max out all my credit cards and the file for bankruptcy?
A. Such conduct can constitute fraud and serve as a basis for rejection of your bankruptcy petition.