Chapter 7 Bankruptcy Questions Answered
Have you recently gone through a chapter 7 bankruptcy? Are you considering filing for bankruptcy? If so, you likely have a lot of questions and concerns. This is completely normal, and in fact it is a sign that you are approaching your bankruptcy in a smart and responsible manner. You should speak to your bankruptcy attorney to find out all of the details and rules that apply to your particular case, but what follows is a brief look at some of the most common questions people filing for chapter 7 bankruptcy may have.
Will Bankruptcy Wipe Out Everything?
As your bankruptcy attorney will tell you, chapter 7 can discharge most personal debts, but there are some that cannot be forgiven. Non-dischargeable debts include child support, alimony, taxes, student loans, and debts stemming from illegal activity. The good news is that chapter 7 can essentially wipe out everything else. That means any secured debt can be discharged in most states.
Will Chapter 7 Stop Foreclosure?
This is another popular question clients usually ask their bankruptcy attorney. The short answer is yes. Chapter 7 has what is known as "the automatic stay," which prevents the creditor from foreclosing on your property during the bankruptcy process. The only catch is that the lender can actually apply for relief from the automatic stay and continue the foreclosure process if approved by the court. Your bankruptcy attorney will work with you to reach a settlement with your creditor if this is the case.
Can I Get Credit After Chapter 7?
You can receive credit after going through chapter 7, but your bankruptcy attorney will warn you that you are likely to receive poor rates and fees. Credit companies will likely start you off on a secured credit card before allowing you to pursue other options.
Will Bill Collectors Stop Calling?
By law, your bill collectors and creditors are required to stop calling and soliciting you while you are in the bankruptcy process. Your bankruptcy attorney and trustee will be the ones dealing directly with your creditors. By filing for chapter 7 bankruptcy, you are essentially setting up a temporary safeguard around yourself.
What if I Forget Something?
One fear many people have is forgetting to list a creditor on the chapter 7 bankruptcy papers. You will have the chance to file a timely amendment if you omit a creditor, but work carefully with your bankruptcy attorney to not forget anything the first time around. It is advisable to list all creditors, even if you don't think you owe them anything at all.
Will Bankruptcy Wipe Out Everything?
As your bankruptcy attorney will tell you, chapter 7 can discharge most personal debts, but there are some that cannot be forgiven. Non-dischargeable debts include child support, alimony, taxes, student loans, and debts stemming from illegal activity. The good news is that chapter 7 can essentially wipe out everything else. That means any secured debt can be discharged in most states.
Will Chapter 7 Stop Foreclosure?
This is another popular question clients usually ask their bankruptcy attorney. The short answer is yes. Chapter 7 has what is known as "the automatic stay," which prevents the creditor from foreclosing on your property during the bankruptcy process. The only catch is that the lender can actually apply for relief from the automatic stay and continue the foreclosure process if approved by the court. Your bankruptcy attorney will work with you to reach a settlement with your creditor if this is the case.
Can I Get Credit After Chapter 7?
You can receive credit after going through chapter 7, but your bankruptcy attorney will warn you that you are likely to receive poor rates and fees. Credit companies will likely start you off on a secured credit card before allowing you to pursue other options.
Will Bill Collectors Stop Calling?
By law, your bill collectors and creditors are required to stop calling and soliciting you while you are in the bankruptcy process. Your bankruptcy attorney and trustee will be the ones dealing directly with your creditors. By filing for chapter 7 bankruptcy, you are essentially setting up a temporary safeguard around yourself.
What if I Forget Something?
One fear many people have is forgetting to list a creditor on the chapter 7 bankruptcy papers. You will have the chance to file a timely amendment if you omit a creditor, but work carefully with your bankruptcy attorney to not forget anything the first time around. It is advisable to list all creditors, even if you don't think you owe them anything at all.
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