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5 Critical Questions Regarding Bankruptcy

considering filing for bankruptcyThe idea of bankruptcy causes a lot of fears, doubts and unknowns. Are you or someone you know considering bankruptcy? Don't wait to seek competent legal advice. We can help. Experienced bankruptcy attorney Jennifer L. Riemer tackles some critical questions regarding bankruptcy.

The credit card company has a judgment against me. Can this be included in bankruptcy?

Yes. You will be forgiven of all of your credit card debt in Chapter 7 bankruptcy. You will also be forgiven of other unsecured debts, such as medical bills, past due rents, old cell phone charges and anything else that does not have collateral pledged as security for the debt. Child support, taxes, and student loans, however, cannot be forgiven in bankruptcy.

If I file bankruptcy, will I be able to keep my home?

Yes. If you are current with your mortgage payments and can afford the payments, you will be able to keep your home. Chapter 7 relieves you of the other debts in your life, so that you are better able to make the mortgage payment each month. If you cannot afford the home, however, you may choose to surrender the home in bankruptcy, and be forgiven of the mortgage debt, too. The same is true of car loans. If you are current with the car payment, and wish to keep the car, you may, as long as you keep making the payments. If you would rather give the car back to the bank, then you can be forgiven of the car loan.

How will filing bankruptcy affect my credit? 

The bankruptcy filing will appear on your credit report for a number of years. However, this shows the reader of your credit report that you are free of debt as of the date you filed bankruptcy. This increases your ability to borrow money in the future. After you file bankruptcy, the creditors can no longer report your payments as delinquent month after month. After bankruptcy, you will want to find ways to build the credit back up, such as paying your mortgage or car payments on time each month, or putting a utility bill in your name, and paying that on time.

I am in foreclosure. Is there any way to stop it?

Yes. Filing bankruptcy stops the foreclosure. You may file Chapter 13 to stop the foreclosure and enter into a payment plan to pay back the mortgage arrears at 0% interest over 5 years. You may file Chapter 7 bankruptcy to temporarily stop the foreclosure and buy some time to work things out with the mortgage company. After filing bankruptcy, you may be able to negotiate a loan modification with the mortgage company, to lower your monthly payment or your interest rate.

I am getting a divorce. Is this a good time to file bankruptcy? 

Yes. Filing bankruptcy can simplify your divorce proceedings. If both of you file bankruptcy, then you will not have to argue over who pays what debts in the future. Also, you will not have to carry the burden of your marital debt into your new life. Bankruptcy is good way to leave the past behind you and start with a clean slate.

Do you have questions about filing for bankruptcy? Don't guess and don't wonder. Call Attorney Riemer at (262) 740-1971 now or click here to contact us!