Uncover the Secrets to a Fresh Start: The Top 10 Bankruptcy FAQs Answered!
If you're feeling overwhelmed by debt and considering filing for bankruptcy, you're not alone. It's a big decision, and it's natural to have questions about the process. That's why I've put together a list of the top 10 frequently asked questions for a bankruptcy attorney.
These answers will help you get a better understanding of what bankruptcy is, how it works, and what you can expect.
What is bankruptcy and how does it work? Bankruptcy is a legal process designed to provide relief from overwhelming debt. It allows individuals and businesses to either liquidate assets to pay off debts (Chapter 7 bankruptcy) or reorganize finances to repay debts over time through a payment plan (Chapter 13 bankruptcy). The process is managed by the bankruptcy court, and a bankruptcy attorney can help guide you through the process and represent you in court.
What types of bankruptcy are available? The two most common types of bankruptcy are Chapter 7 and Chapter 13. A bankruptcy attorney can advise you on which type is best for your situation based on your financial circumstances and debts.
What happens to my assets in a bankruptcy case? In a Chapter 13, you keep all of your assets. In a Chapter 7 bankruptcy, some of your assets may be liquidated to pay off debts. However, some assets may be exempt from liquidation and protected. A bankruptcy attorney can advise you on what assets may be protected in your specific case.
Can bankruptcy help me get out of debt? Yes! Bankruptcy can provide relief from overwhelming debt by either liquidating assets to pay off debts or reorganizing finances to repay reduced debts over time through a payment plan. A bankruptcy attorney can help you understand your options and choose the best course of action for your specific situation.
Will bankruptcy ruin my credit? In the short term, filing for bankruptcy can have a negative impact on your credit score, but it may also provide relief from overwhelming debt and a fresh start financially. After obtaining the bankruptcy discharge, credit scores tend to improve to even higher numbers than prefiling. A bankruptcy attorney can advise you on the long-term impact of bankruptcy on your credit and help you make an informed decision.
How often can I file for bankruptcy? There are limits on how often you can file for bankruptcy. You can typically file for Chapter 7 bankruptcy every eight years and a Chapter 13 bankruptcy can be filed every two years.
Do I need a bankruptcy attorney? While it is not required to have a bankruptcy attorney, it is recommended. The bankruptcy process can be complex, and an attorney can provide guidance and representation in court.
How does a bankruptcy attorney help in the process? A bankruptcy attorney can advise you on the best type of bankruptcy for your situation, assist you in preparing and filing the necessary paperwork, represent you in court, and handle all necessary court appearances. They can also help you navigate the complex rules and regulations of the bankruptcy process.
Can I keep my home and car in bankruptcy? In Chapter 13, yes, you can keep your home and car. In Chapter 7, the answer depends on the value of your assets and the exemptions available. A bankruptcy attorney can advise you on what assets may be protected in your specific case.
What debts can be discharged in bankruptcy? Not all debts can be discharged in Chapter 7. For example, student loans, child support, and most tax debts are typically not dischargeable. In Chapter 13, most of these debts can be included in the payment plan and repaid before the end of the case. A bankruptcy attorney can advise you on what debts can be discharged in your specific case.
In conclusion, filing for bankruptcy can be a complex process, but with the right guidance, it can provide much-needed relief from overwhelming debt. The answers to these top 10 frequently asked questions will help you get a better understanding of what bankruptcy is, how it works, and what you can expect.
If you're still feeling uncertain about what path to take, the lawyers at Almeida & Davila are here to help. We offer a free legal strategy session, where you can get answers to all of your questions and develop a plan of action. Don't let debt control your life, take control with the help of Almeida & Davila. Contact us today to schedule your free legal strategy session.