Personal Bankruptcy FAQs
Expert Insights & Realistic Solutions.
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What is personal bankruptcy, and how does it work?
Personal bankruptcy is a legal process designed to help individuals eliminate or restructure their debt. It can stop creditor harassment and give you a fresh start. You, through your attorney, must complete a bankruptcy petition and file it with the court to begin the process.
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What types of personal bankruptcy are available?
The two main types are Chapter 7 and Chapter 13 bankruptcy. Chapter 7 involves liquidating non-exempt assets, while Chapter 13 creates a repayment plan. Your attorney will help you decide which chapter is appropriate for you.
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Can I keep my home if I file for personal bankruptcy?
Yes, under Chapter 13 bankruptcy, you can keep your home as long as you follow the repayment plan. Each case is different so please set up a consultation to discuss your situation.
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Will bankruptcy stop creditor harassment?
Yes, filing for bankruptcy provides an automatic stay, which immediately stops creditors from calling or suing you.
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How long does the personal bankruptcy process take?
Chapter 7 typically takes about 3-6 months, while Chapter 13 can last 3-5 years due to the repayment plan.
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Will bankruptcy wipe out all my debts?
Bankruptcy discharges most unsecured debts, but certain debts like student loans and IRS debt may not be dischargeable.
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How will bankruptcy affect my credit score?
Bankruptcy will impact your credit score, but many clients find it easier to rebuild credit afterward without the burden of overwhelming debt.
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What should I do if I’m considering personal bankruptcy?
Contact us to discuss your financial situation. We'll help you decide if bankruptcy is the right option and guide you through every step.
