If you are financially strapped and overwhelmed with calls from creditors and late bills, you might be considering filing for bankruptcy. Although almost everyone knows what bankruptcy is, most people don’t know what it actually entails. You will no doubt have countless questions about the filing process and the impact of filing bankruptcy on your future. While it is best to consult directly with an experienced Central Valley bankruptcy attorney, below are answers to some of the top 5 bankruptcy questions.
#1. Will Filing for Bankruptcy Eliminate Credit Card Debt?
Yes, filing for bankruptcy can eliminate most types of debt, including unsecured credit card. Unsecured credit card debt is any debt that is not tied to an asset, like a home or motor vehicle. This most commonly means credit card debt, but can also refer to items like personal loans and medical debt.
#2. Can I Still Get a Credit Card If I File for Bankruptcy?
Yes, you can still get a credit card after filing for bankruptcy. However, you should note that you may only get approved for specific types of credit cards and for a limited amount, such as a secured credit cards that require refundable deposits and subprime credit cards that are designed for people with poor credit.
#3. What Is the Difference Between Chapter 13 and Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is generally designed for individuals who have no ability or very little ability to pay back their debts. In most cases, if you file Chapter 7, you may lose your non-exempt assets in exchange for having most of your debt erased. Chapter 13 on the other hand is designed to reduce your debt burden and payment schedules. In this type of bankruptcy, the court will allow you to make smaller payments to your creditors while keeping most of your assets.
#4. Will Filing for Bankruptcy Help Save My House From Foreclosure?
Filing Chapter 13 bankruptcy can save your house from foreclosure by allowing you to pay off the late, unpaid payments over a repayment period. In order to file Chapter 13, you will need to have enough income to meet your current mortgage payment while paying off late payments.
#5. Do I Need to Hire a Bankruptcy Attorney?
Although you are permitted to file bankruptcy on your own without an attorney, you are strongly advised not to. The bankruptcy process can be very complicated. Making even the smallest mistakes in the process can impact your overall outcome.
Call an Experienced Central Valley Bankruptcy Attorney
If you are planning to file or in the midst of a bankruptcy proceeding, it is in your best interest to consult with an experienced bankruptcy attorney to help you learn your legal rights and options, especially with respect to Chapter 7 bankruptcy.
For more information or to schedule a complimentary consultation with Central Valley bankruptcy attorney Gurjit Srai, please call 209-323-5558, or complete our online form.