3. What Different
Types of Bankruptcy Should I Consider?
4. Chapter 7 (Straight Bankruptcy)?
5. Chapter 13 (Reorganization)?
6. What Does It Cost to File for Bankruptcy?
It
now costs $200 to file for bankruptcy under chapter 7 and $185
to file for bankruptcy under chapter 13, whether for one person
or a married couple. If you hire an attorney you
will also have to pay the attorney's fees you agree to.
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7. What Property Can I Keep?
In a
chapter 7 case, you can keep all property which the law says is
"exempt" from the claims of creditors.
8. What Will Happen to My
Home and Car If I File Bankruptcy?
9. Can I Own Anything After Bankruptcy?
Yes! Many people believe they cannot own anything for a period
of time after filing for bankruptcy. This is not true. You can
keep your exempt property and anything you obtain after the bankruptcy
is filed. However, if you receive an inheritance, a property settlement,
or life insurance benefits within 180 days after filing for bankruptcy,
that money or property may have to be paid to your creditors if
the property or money is not exempt.
10. Will Bankruptcy Wipe
Out All My Debts?
11. Will I Have to Go to Court?
In
most bankruptcy cases, you only have to go to a proceeding called
the "meeting of creditors" to meet with the bankruptcy
trustee and any creditor who chooses to come. Most of the time,
this meeting will be a short and simple procedure where you are
asked a few questions about your bankruptcy forms and your financial
situation.
Occasionally, if complications arise, or if you choose to dispute
a
debt, you may have to appear before a judge at a hearing. If you
need to go to court, you will receive notice of the court date
and time from the court and/or from your attorney.
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12. Will Bankruptcy Affect My Credit?
There
is no clear answer to this question. Unfortunately, if you are
behind on your bills, your credit may already be bad. Bankruptcy
will
probably not make things any worse.
The fact that you've filed a bankruptcy can appear on your credit
record for ten years. But since bankruptcy wipes out your old
debts,
you are likely to be in a better position to pay your current
bills, and
you may be able to get new credit.
13. Can I Be Discriminated Against For Filing
Bankruptcy?
An employer or government agency cannot discriminate against you
because you have filed for bankruptcy.
14. What About Co-signers?
If someone
has co-signed a loan with you and you file for bankruptcy, the
co-signer may have to pay your debt.
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