If you’re consider filing for bankruptcy, you probably have many bankruptcy questions. The following briefly addresses some of the most common bankruptcy questions. To explore how bankruptcy can help you get out of debt, contact our firm to set up a free consultation with one of our experienced and compassionate bankruptcy attorneys.

What is bankruptcy?

Bankruptcy is a legal proceeding that allows a person who cannot pay back his or her debts to erase certain debts and get a fresh financial start. Filing for bankruptcy is a legal right under federal law.

Will my creditors stop coming after me to collect on debts?

Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you. Bankruptcy stops wage garnishments, bank levies, lawsuits for unpaid debts, and collection phone calls. Collection activity will stop at least until your debts are sorted out according to bankruptcy laws. Debts that are discharged (erased) in bankruptcy are gone forever, and collection activity must stop forever.

Do I qualify for bankruptcy?

The answer to this questions is complex and requires an analysis of your income and expenses. Even high-income earners can qualify for Chapter 7 bankruptcy, which is the quickest and simplest form of bankruptcy. For people who do not qualify for Chapter 7, or who would otherwise benefit from additional protections, filing for Chapter 13 bankruptcy may be an option. Chapter 13 bankruptcy requires a three to five year repayment plan but offers additional benefits that Chapter 7 does not, such as the opportunity to lien strip an underwater second mortgage, pay mortgage arrears, and make up missed car payments.

Read our article You Can Qualify For Bankruptcy Even If You’re Over the Median Income.

Will someone come to my house and take my belongings if I file for bankruptcy?

No. The majority of bankruptcy filers get to keep most or all of their personal belongings, property, and other assets, including their car. Your belongings and assets are protected through bankruptcy exemptions. In the event that you own something that cannot be protected, we will discuss that before filing your bankruptcy case.

What debts will be erased?

Your dischargeable debts will be erased in a successful bankruptcy case. Dischargeable debts include credit cards, medical bills, personal loans, old tax debts that meet certain criteria, and other types of unsecured debts.

Can I get rid of my student loans by filing for bankruptcy?

No, student loans are generally nondischargeable and cannot be erased through bankruptcy.

Will bankruptcy ruin my credit?

Filing for bankruptcy will decrease your credit score in the short term and will report on your credit report for seven to ten years from the date you file, depending on which chapter you file. However, bankruptcy will not ruin your credit significantly more than carrying a massive debt load and missing monthly payments ruins your credit.

Do you offer free consultations?

Yes! We offer a free consultation to anyone living in or near Savannah, GA. Call us at (912) 351-9000 or fill out this free consultation form.

The above are only cursory answers to common bankruptcy questions. When we meet for our free consultation we will thoroughly answer all of your questions, and take the time to explain how bankruptcy operates and how filing will affect you specifically.

Call us today at (912) 351-9000 or contact us here to schedule a free consultation.

 

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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