Can I keep my property if I file for bankruptcy?
Filing for Chapter 13 bankruptcy enables you to keep all of your property. What happens is, a plan for the repayment of your debts is devised which fits within your budget. Over the course of 3 years, payments are made by you to the trustee assigned to your bankruptcy case. The trustee then disburses the funds to each creditor each month. The whole chapter 13 process is a lot like a debt consolidation plan with a modification of the loan terms.
Can debt collectors contact me if I file for bankruptcy?
If you file for bankruptcy, each creditor that you list in your petition will not be legally permitted to contact you during the pendency of the bankruptcy. Contacting you will be a violation of the automatic stay the court immediately issues when you file for bankruptcy and could result in fines and sanctions against the creditor who contacts you. There is an alternative for creditors, however, if they request relief from the stay. If the court grants the creditor relief from a bankruptcy stay, that means that the creditor can begin collection efforts again. This usually only happens when a mortgage lender requests relief from the stay during a mortgage foreclosure.
What will bankruptcy do to my credit score?
Filing for bankruptcy can be a real life saver for some people. But questions always arise as to how the bankruptcy will affect their credit score after all is said and done. The answer depends on how your credit score was before you filed for the bankruptcy. Obviously, if you have a low credit score to begin with, filing for bankruptcy will not affect your score very much at all. If however, you had a pretty high credit score previous to filing for bankruptcy, the score will drop much more significantly.
We offer low-cost, flat fee representation in Chapter 7 bankruptcy cases. For more information about filing for bankruptcy, please contact us at The Wood Law Firm, LLC.