Frequently Asked Questions

One of the major factors in how bankruptcy will impact your credit score depends on the score you have when you initiate the filing. If you have a high score, you can expect that score to drop slightly. If you already have a below average score at the time of filing, it actually may rise as a result of some of your debt getting removed from your credit report. Average scores typically see the least amount of impact, with little change up or down. No matter your situation, it should eventually go up after the bankruptcy is compete, as you have reduced debt on accounts. These accounts will no longer be reporting late payments for you every month.

Yes, you could still get approved for car loan. As a matter of fact, many people received an influx of offers from car dealerships and auto lenders post-bankruptcy. You may become a more appealing, lower risk option for some businesses as you now have less accounts to pay on and have more of your income available to spend.

Yes, you could still get approved for an apartment. Some leasing companies will deny your application because you filed bankruptcy. However, it is important to note that this is not a rule that applies to all leasing companies. There will still be companies that either do not require you to disclose your bankruptcy filing, or still approve you application if you answer yes. The further away from your initial filing date you get, the more leasing options you should have.

Yes, most if not all of your credit card accounts will be closed by the issuer, even the ones that are in good standing. You will not have the choice in which credit cards to keep, as you may now be seen as a risk factor. Contrary to popular belief, many credit card companies will actually approve you for a card after a bankruptcy filing. They may offer lower limits, but can increase over time if you use them responsibly.

No, you will not automatically get kicked out simply for filing for bankruptcy. As long as you are current on your rent, most landlords will not terminate a lease due to a bankruptcy filing. However, a landlord can choose not to renew your lease at the end of the term. In many cases, landlords are only made aware of your filing if you list them as a creditor in the bankruptcy as rent owed. If you fall behind on rent, but no eviction judgment has been issued, bankruptcy can offer some protection. Filing Chapter 7 triggers an automatic stay, which temporarily stops many collection actions, including eviction. Note that this protection may only apply if the landlord has not already been awarded a judgement of possession.

Filing bankruptcy does not guarantee that you will lose your home. There are federal exemptions for your home equity up to a certain amount. Depending on where you live, some states provide complete exemptions that actually shield all of the equity in your home. Contact us to discuss your options.

You will not automatically lose your vehicle after filing bankruptcy. Vehicle exemptions apply on both the federal and state level. Contact us now so that we can discuss your options.

Your bankruptcy filing will not affect your kids financially. As long as property is legally theirs, the assets are safe. Beware that transferring property to your kids just before filing can be seen as a fraudulent transfer in the eyes of the trustee.

No, you will not lose your job if you file bankruptcy. There are protections for both government and private sector employees, which prohibit terminating a person’s employment solely because of a bankruptcy filing.

When filing Chapter 7 bankruptcy, the entire process usually takes 3-4 months on average. To prevent delays, submit your documents to the attorney in a timely manner. The clock starts only after all the documents are submitted and the case is filed in court.

A consultation with us is free. Give us a call or contact us through the website today.