What Is A Secured And Unsecured Debt?
A secured debt is one that your creditor can claim because it has been secured by a lien on your property. In the event of bankruptcy, the secured debt is paid first. Unsecured debt, on the other hand, is not secured against any property. Credit card bills, utility bills and many other bills are generally referred to as unsecured debts.
Can I Change From One Chapter To Another?
Yes you can, but you have to watch out for certain things. For example, if you thinking about changing your Chapter 13 petition to Chapter 7, you have to take into consideration that your property and assets can be liquidated. So it is important that you go over everything with your lawyer before you file for a change.
Can I File For Chapter 7 Bankruptcy Again After Two Years Of Getting A Discharge?
No. a Chapter 7 bankruptcy can only be filed after a gap of 8 years from the previous Chapter 7 filing. In case of Chapter 13, you can file for another Chapter 13 bankruptcy after a gap of two years. If you have been discharged under Chapter 7, then you can file for Chapter 13 after four years.
Will My Credit Be Ruined If I File For Bankruptcy?
Yes. Bankruptcy has a negative effect on your credit scores. Furthermore, it is reported on your credit record and stays there for 10 years. A bankruptcy on your credit record will make it hard for you to get a loan or insurance coverage. It will even make it difficult for you to rent a place.
Do Married Couples Have To File For Bankruptcy Together?
Yes. It is a good idea for married couples to file a joint petition. If only one spouse files for it, then the other spouse can be held responsible for the debts. Therefore, it makes sense to file a joint petition.
Which Chapter Should I File Under?
Deciding on which chapter you should file under basically depends on the kind of debts that you have. You need to consider whether you are behind on your secured debts or unsecured ones, or even both. You also must keep your monthly income in mind. If your income is above your state’s average income, you cannot file for Chapter 7 bankruptcy.
Can I Save My Assets By Transferring Them In Someone Else Name?
No. furthermore, doing so might lead to a denial of your petition. Usually a trustee recovers all the property that was transferred within one year of the bankruptcy filing. So it does not make sense to transfer the property. If it is found that the transfer was done with the intent to defraud the creditors, it would lead to a denial of your discharge.
Can My Bankruptcy Discharge Include My Student Loan?
No. Earlier a student loan that had been in pay status for 7 years could be discharged. However, today, student loans cannot be discharged. The only exception is if you could prove that repaying the loan would create undue hardship on you or your family.
Is It A Good Idea To File Bankruptcy Without The Help Of A Lawyer?
Bankruptcy is a complex process and it is not sensible to do it without the help of a lawyer. Remember that if you make a single mistake, you can lose all your assets.
Can My Creditors Collect From Me After I Have Obtained A Discharge?
If you have obtained a bankruptcy discharge for a particular debt, the creditor cannot collect it from you. After you have obtained a discharge, the trustee appointed in your case sends out notices to your creditors. This notice prohibits creditors from collecting or taking any legal action against you.