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Bankruptcy FAQ Online - Personal Bankruptcy F.A.Q

Bankruptcy FAQ Online - Personal Bankruptcy F.A.Q

The answers to all your bankruptcy questions

Q: How do I file bankruptcy?

A: Simply acquire the correct paperwork and submit it to your local bankruptcy court along with a fee.

Q: How do I avoid bankruptcy?

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A: Financial awareness and planning help avoid bankruptcy. Adhere to a monthly budget, investigate credit counseling and education, prepare with bankruptcy FAQ's.

Q: Are there any bankruptcy alternatives?

A: Communicate with your creditors, formulate a better payment plan, seek professional advice through a non-profit credit counseling service, consider debt consolidation and refinancing.

Q: How does personal bankruptcy differ from business bankruptcy?

A: Individuals can file Chapter 7 or Chapter 13 bankruptcy, which focus on personal debt. Businesses file Chapter 11 bankruptcy, designed for complex organizations.

Q: What does it mean to file Chapter 7 bankruptcy?

A. Chapter 7 bankruptcy sells, or liquidates, the debtor's assets to pay off creditors. Filing Chapter 7 clears most debt, allowing the debtor to just walk away.

Q: What is Chapter 11 bankruptcy?

A: Chapter 11 is a reorganization plan designed for businesses. The business is allowed to function while court-appointed trustees reorganize the company, discovering and remedying financial problems.

Q: What is Chapter 13 bankruptcy?

A: Chapter 13 allows the debtor to repay creditors over time via court-regulated payments.

Q: What are the basic bankruptcy laws?

A: Bankruptcy in the United States is governed by federal law called the Bankruptcy Code but each state is entitled to assert some local laws, such as state exemptions.

Q: Do I need a bankruptcy attorney?

A: Due to the complexity of bankruptcy proceedings, it is recommended that you hire a bankruptcy attorney.

Q: How do I find reliable bankruptcy lawyers?

A: Via word of mouth, search through your local American Bar Association, check credentials with the American Board of Certification.

Q: Is there a general timeline for bankruptcy court?

A: Depends on the size and complexity of the case: Chapter 7 can take as little at four months, while Chapter 13 repayment plans take up to a maximum of five years.

Q: Where do I get the basic bankruptcy forms?

A: Although some services charge for the forms, all the paperwork is free from the U.S government on www.uscourts.gov.

Q: Is it expensive to file bankruptcy?

A: Court filing fees cost between $299 and $1039. Lawyer fees vary and Chapter 7 can cost around $500-$1000, while a Chapter 11 can cost thousands.

Q: How is my credit after bankruptcy affected?

A: Your credit score is lowered - bankruptcy shows you escaped financial responsibility, making it costly to build up credit again.

Q: What are bankruptcy loans?

A: Bankruptcy loans (bad credit loans or B, C, D loans) are available, with high interest rates, to people with poor credit ratings.

Q: Is it possible to apply for credit cards after bankruptcy?

A: Credit cards are available for those with a history of bankruptcy. Secured credit cards are recommended.

Q: Can I get a Mortgage after Bankruptcy
?

A: It usually takes two years after your bankruptcy case has cleared to be approved for a mortgage, after you have improved your credit score.

Q: How do I improve my post bankruptcy credit score?

A: Open a bank account, make regular payments, take out a loan, and maintain a credit card. Anything to prove you are financially responsible again.

www.uscourts.gov