Answers To Common Bankruptcy Questions
Bankruptcy is a complex situation and something you really don’t want to experience on your own. At The Carlson Law Firm, we make sure you’re protected and guided through the process from the beginning to the end. Our firm is available to review your situation and we can create a plan to ensure that your bankruptcy is effectively executed and works for all involved.
Should I file Chapter 7 or Chapter 13 bankruptcy?
You may qualify for Chapter 7 if your monthly expenses exceed your monthly income, your income is less than the median family income in your state, or you do not have a lot of assets that you wish to keep. You may qualify for Chapter 13 bankruptcy relief if your monthly income exceeds your monthly expenses. Under Chapter 13, you make a “plan” to repay your debts over a maximum of 60 months.
Who notifies the creditors and bill collectors?
After the bankruptcy petition is filed, the court mails a notice to all the creditors you’ve listed.
Will the bankruptcy stop bill collectors from calling?
Yes. The bankruptcy will temporarily stop all actions that a creditor can take against you, your property, and assets.
Can I use bankruptcy to stop foreclosure on my home or to stop other actions by creditors?
Yes, actions against your assets or property will stop immediately (although it may be temporary).
Can my employer fire me for filing bankruptcy?
No. The Bankruptcy Code prohibits private employers from discriminating against you because you filed a bankruptcy petition.
Will I have to go to court?
You will be asked to attend a meeting of creditors with your attorney. The purpose of this meeting is to give the bankruptcy trustee and the creditors an opportunity to appear and ask you questions about the bankruptcy schedules that list the financial facts relevant to your bankruptcy petition. An experienced bankruptcy attorney from The Carlson Law Firm will be there with you and can do most of the talking.
Does the spouse of a married person also have to file bankruptcy?
No. In some cases where only one spouse has debts, it may make sense for only one spouse to file. Both spouses are responsible for the debts acquired together while they are married. If you file for a bankruptcy on these joint debts, your creditors can pursue your spouse for payment. If you are living together, it may be wise for you to jointly file for bankruptcy. If the debt belongs to you alone, the creditor cannot pursue your spouse for the debt after you file for bankruptcy. Before you make a decision on whether the debt is a joint debt or yours alone, you may want to ask an experienced bankruptcy attorneys at The Carlson Law Firm.
How long does a bankruptcy stay on my credit record?
For a period of 7 to 10 years. However you can begin rebuilding your credit immediately after receiving a bankruptcy discharge.