Bankruptcy Fq Essay

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Bankruptcy FAQ
Since most people have questions about bankruptcy, which is understandable, I have put together a list of the most common questions I get.
What is bankruptcy?
Bankruptcy is a legal proceeding in which allows a person who cannot pay his or her bills to get a fresh financial start. The right to file for bankruptcy is a federal law and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops your creditors from soliciting to collect debts from you, at least until your debts are sorted out according to law.
What can bankruptcy do for me?
Bankruptcy can cancel the legal obligation to pay most or all of your unsecured debts. Bankruptcy can also do the following:
• Stop wage garnishment, debt collection
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Please verify the current exemption limits with an attorney).
In a Chapter 13 case, you can keep all of your property if your plan meets the requirements of the U.S. Bankruptcy Code. In most cases you will have to pay the mortgages or liens as you would if you didn’t file bankruptcy.
Can I own anything after bankruptcy?
Of course you can! Many people believe they will not be able to own anything for a long period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you acquire 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 considered
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Your attorney can provide you with a list of organizations that provide these approved courses. You can also check out the website for the United States Trustee Program office at This course takes approximately two hours to complete. In a Chapter 7 case, you should sign up for the course soon after your case is filed. If you file a Chapter 13 case, you should ask your attorney when you should take the course.
Will bankruptcy affect my credit?
There is no plain answer to this question. Unfortunately if you are behind on your bills, your credit may already have been affected. Bankruptcy in this case will most likely not make things worse.
A bankruptcy can appear on your credit record for up to 10 years after the fact. But do keep in mind that because bankruptcy discharges your old debts, you are likely to be in a better position to pay your current bills, and you might be able to get new credit as a result.
What is my credit rating?
The credit industry has conditioned consumers to equate the contents of credit reports with their credit worthiness. It is important to know that the two are not actually the same. A credit report may show that you have faithfully made every payment on time yet are still not worthy of more credit because you can’t possibly pay off the credit you
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