A few months ago we posted 3 Bankruptcy Questions Most People Ask. That post received so much traffic, we decided to do a follow-up article!
We have been practicing bankruptcy law for over 35-years. In all of this time, we have discovered that there are questions that nearly every person asks. We offer a free consultation to anyone (in the Savannah, GA area) who has questions about debt relief options or bankruptcy. Our goal is to ensure our clients have all of their questions answered and understand the bankruptcy process from start to finish.
To help you better understand how filing for bankruptcy protection can help you, we’re here to answer 3 more bankruptcy questions most people ask.
- If there are different chapters of bankruptcy, how do I know which chapter is right for me to file?
Individuals can file either Chapter 7 or Chapter 13 bankruptcy. The “chapters” come from the United States Bankruptcy Code, and the numbers represent the code sections.
Chapter 7 bankruptcy is generally the quickest and simplest chapter. It erases most unsecured debts, without a repayment plan, and typically can be completed in four to six months. Chapter 13 bankruptcy creates a three to five-year repayment plan to pay back some or all of your debts.
When you work with us, we will explain the different chapters of bankruptcy and how filing will affect you and your family. When we meet for a free consultation we will go over the pros and cons of the various chapters and help you determine which chapter is best for you.
To better understand Chapters 7 and 13, read our article The Differences Between Chapter 7 and Chapter 13 Bankruptcy.
- When will my creditors stop harassing me for payment?
As soon as you file for bankruptcy. Once you file, it is illegal for creditors to attempt to collect from you on debts you owe them. This is because of the Automatic Stay, a powerful provision in the U.S. Bankruptcy Code. Bankruptcy stops all collection action immediately.
Further, even before filing for bankruptcy protection, you have the power to stop harassing collection phone calls yourself. Learn how to put an end to harassing creditor calls here.
- Will I ever be able to get a credit card again?
The short answer is yes. After bankruptcy people are able to get credit cards and other loans, including car loans and mortgages.
Filing for bankruptcy does lower your credit score. However, many people are surprised to discover that their credit score begins to rebound shortly after bankruptcy. Prior to filing their credit was being dinged each month with late payments and an increasing debt load. After filing, they have little to no debt, making them a viable candidate for credit.
Moreover, there are actions you can take to help increase your score more quickly.
- Make sure the information reported on your credit report is accurate. Learn more in our article Order a Free Credit Report.
- Make all payments on time – late payments are damaging.
- Installment loans, such as a car loan or mortgage, help increase your score.
- Opening a credit card and paying the bill off in full every month will help increase your score.
Your bankruptcy filing will not stay on your credit report permanently. A Chapter 7 bankruptcy will remain on your credit report for 10-years, and a Chapter 13 bankruptcy for 7-years.
Filing for bankruptcy may temporarily limit your access to credit, or force you to pay higher interest rates for credit you do get. Though many of our clients find that the relief of getting out of debt far outweighs this concern.
Read answers to the following questions in our article 3 Bankruptcy Questions Most People Ask:
- Do I qualify for bankruptcy?
- Will I lose all of my belongings if I file for bankruptcy?
- How long will my credit be ruined?
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Is Bankruptcy the Right Solution for Me?
At the Law Office of Barbara B. Braziel we file hundreds of Chapter 7 and 13 bankruptcy cases every year. But our clients are never just a number. You will not be left in the hands of a paralegal. You will have access to your attorney throughout your bankruptcy case. We are here to give you the fresh start you deserve.
We proudly serve the people of Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Springfield, Pembroke, Brooklet, Garden City, and Ludowici, Georgia.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.