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BANKRUPTCY
Q. What's the difference between a Chapter 7 and Chapter 13 bankruptcy? A. A Chapter 7 bankruptcy is (if you have no or minimal assets) essentially where you discharge all your debts other than ones that you're not allowed to discharge. For example, you can discharge credit card and medical bills but not a tax bill owed to the I.R.S. A Chapter 13 bankruptcy is where you pay some portion or all of your debts over time out of your wages. Q. Why would I pick Chapter 7 over Chapter 13, or vice versa? A. Chapter 7 is more common, but Chapter 13 may be right for you if the amount of assets you have is greater than you would be allowed to keep under Chapter 7, or if you have an excess of disposable income. Q. Is it always true that I get to keep my assets if I file under Chapter 7? A. No. So be careful. Make sure you tell your attorney about all your assets before you file. Q. Can I bankrupt my child support arrears? A. No. Q. What's the difference in the amount of filing fee between an individual bankruptcy petition and a joint (husband & wife) bankruptcy petition? A. None. Q. Will filing bankruptcy ruin my credit rating? A. Not as a rule, but only because by the time you file your credit rating is almost always already bad. Potential creditors will see the bankruptcy on your credit report after the bankruptcy. Q. Can I get a mortgage right after I go bankrupt? A. Sometimes. Usually those people who get mortgages after they go bankrupt get private mortgages, usually from home sellers. |
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