If you’re overwhelmed with debt, calls from creditors, and late bills, you might be considering filing for bankruptcy. You probably have countless questions about the bankruptcy filing process and how it will affect you in the future. Thankfully, our Southern California bankruptcy attorneys have put together a list of the top six bankruptcy questions that our clients ask us.
#1: Can Bankruptcy Eliminate Credit Card Debt?
Yes, bankruptcy can eliminate many types of debt, including unsecured credit card debt. Unsecured credit card debt is if you didn’t promise to give back the purchased property if you didn’t pay the bill. If you have a secured credit card, you may need to give the purchased items back.
#2: Will I Still Be Able to Get a Credit Card After Filing for Bankruptcy?
You can still get a credit card after filing for bankruptcy but might only get approved for specific types of cards. These include 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 7 and Chapter 13 Bankruptcy?
Chapter 7 bankruptcy is designed for people who have little to no ability to repay their debts. In most cases, people who file for bankruptcy may lose their non-exempt assets in exchange for having most of their debt erased. Chapter 13 on the other hand, is designed to lessen debt burdens and payment schedules. The court will allow you to make payments that are easy while keeping most of your assets.
#4: Can Bankruptcy Save My House from Foreclosure?
Yes, bankruptcy can save your house from foreclosure with Chapter 13 bankruptcy. Chapter 13 lets you pay off the late, unpaid payments over a repayment period. This means that you’ll need enough income to meet your current mortgage payment while paying off late payments.
#5: How Will Bankruptcy Affect My Spouse?
If you file for bankruptcy without your spouse, it can still affect them if you have joint property or debts. However, it won’t affect your spouse’s separate property or assets. If you file together, it will affect you both equally.
#6: Can I File for Bankruptcy on My Own?
You can file for bankruptcy without an attorney; however, it is strongly advised not to. Misunderstanding legal issues or making mistakes in the process can affect the overall outcome of your bankruptcy. Having an experienced attorney on your side will ensure that your process goes smoothly.
Need help filing for bankruptcy? Call our Southern California bankruptcy attorneys today at (800) 996-9932!