Who will know I’ve declared bankruptcy?
Can I eliminate all my debts?
Will I lose everything if I declare bankruptcy?
Will bankruptcy improve my credit rating?
Will I ever be able to get credit again?
Must my spouse be included in my bankruptcy filing?
May I file for bankruptcy without an attorney?
Why do people file for personal bankruptcy?
Q. Who will know I’ve declared bankruptcy?
A. Your creditors, your attorney, and a co-filer, if you have one (e.g., a spouse).
The only other people who will know will be those whom you choose
to tell.
Q. Can I eliminate all my debts?
A. You can discharge much of your personal debt, such as credit card
debt. Certain debts, however, cannot be eliminated, such as child support,
alimony, debt incurred through fraud, or student loan debt (although rehabilitation
programs exists for defaulted school loans).
Q. Will I lose everything if I declare bankruptcy?
A. Absolutely not. In bankruptcy, your home, vehicle, personal possessions, and qualified
retirement accounts are almost always protected from confiscation. For most people, this
means they can retain all of their assets.
Q. Will bankruptcy improve my credit rating?
A. No. Bankruptcy will remain on your credit history for 10 years. There is no way
around this. Bankruptcy will, however, stop the harassing calls and letters from
creditors, increase your peace of mind, and give you a chance to improve your future
credit rating.
Q. Will I ever be able to get credit again?
A. Yes, absolutely, although a bankruptcy will affect your credit rating
and score for 10 years, during which time you should not expect to receive the best
quality offers of credit.
Q. Must my spouse be included in my bankruptcy filing?
A. Not necessarily, but it is an issue your attorney can help you decide.
Q. May I file for bankruptcy without an attorney?
A. Legally, yes. However, most individuals find a lawyer to be indispensable during
a personal bankruptcy process. Not only is a bankruptcy attorney skilled at this
area of law, but for most laypeople, having legal representation also alleviates much
mental and emotional stress.
Q. Why do people file for personal bankruptcy?
A. Most people who file for bankruptcy do so after struggling at length to keep up
with their bills. Often they have experienced, or are experiencing, a difficult and
unforeseen situation, such as divorce, major illness, death of spouse, or loss of job.