facebook-squarelinkedin-squaremenumobiletwitter-squareyoutube-square

Bankruptcy FAQ

Bankruptcy FAQ

How long does the bankruptcy process take?

Each case has its own unique details so it is difficult to give an exact time frame. However, the typical chapter 7 bankruptcy takes roughly 90-100 days (from beginning to end), for example.

How quickly can I rebuild credit after bankruptcy?

After filing for bankruptcy, many people are under the impression that it takes years to rebuild credit. While it does take a few years to rebuild your credit score, you could still be approved for a low-balance credit card. If you stay current on monthly bills, rent/mortgage payments, you should be able to qualify in the months following bankruptcy.

What can I keep after bankruptcy?

This depends on whether you file Chapter 7 or Chapter 13 and each individual situation varies. Many worry about losing their home, their car or personal possessions when declaring bankruptcy. However, the reality is that you may be able to keep most of these items, depending on the kind of bankruptcy you file for.

Should I cancel my credit cards to improve my credit score?

If you are trying to protect or rebuild your credit score, cancelling your credit cards may be counterproductive.

How does divorce play into bankruptcy?

Divorce does impact bankruptcy when it comes to the division of marital property and debt. In Washington State, any assets or property acquired over the course of a marriage must be equally divided; this includes retirement funds, equity in a home, bank accounts and other assets. However, in the matter of debt, the terms of a divorce settlement do not affect the agreement you and your spouse have with creditors. A bankruptcy lawyer will work closely with CPAs, forensic accountants and business evaluators, as needed to assist you.

What about the bankruptcy reform legislation (passed by the federal government in 2005)?

In October, 2005, the federal government did pass new bankruptcy reform laws. There has been a common misconception that it is “hard” to or they cannot file for bankruptcy anymore. However, most studies have indicated the new law affects less than 15{02b93d141c77197c0449b6ae8094cea34516f3b9f119afe0d973b93baf87a4bf} of individuals who could have filed previously. It is highly possible you would fall into the 85{02b93d141c77197c0449b6ae8094cea34516f3b9f119afe0d973b93baf87a4bf} of people who are indeed eligible to file. You won’t know until you look into it further, so don’t delay in contacting a bankruptcy lawyer.

Will I lose everything that is important to me if I file bankruptcy?

A majority of people are concerned about filing bankruptcy because they are afraid they will lose all of their property and possessions. However, most people who file for protection do not lose any property at all!

Can my creditors keep contacting me?

Once you have filed for bankruptcy (the process does not have to be competed), your creditors must stop contacting you and only communicate with you through your attorney.

Advantage Legal Group is your source for helping you file bankruptcy and then recouping and planning for the future. Call us for Mortgage Mediation and all questions regarding foreclosures and bankruptcy.

Recent Posts

  • Is Mortgage Forbearance a Good Idea?

    Is Mortgage Forbearance a Good Idea?

    Because of all the unemployment right now an estimated 4.1 million Americans have explored forbearance for their mortgage. Many experts perceive more homeowners will seek this protection unless the pandemic and current issues start to normalize. So what is forbearance? Forbearance is the act of “pausing” your mortgage payments. This is a basic economic rescue […]Read More »
  • Filing for Bankruptcy

    Filing for Bankruptcy

    Filing for Bankruptcy – When, How, & Why Determining if you Qualify for Bankruptcy Individuals file personal bankruptcy because there is financial relief needed and they seek a second start.  If you feel there is no way out of your debt troubles and these debt troubles are regular occurrences, filing bankruptcy maybe your best option. […]Read More »
  • Bankruptcy or Foreclosure Looming?

    Bankruptcy or Foreclosure Looming?

    Bankruptcy or Foreclosure Looming? Let The Washington Foreclosure Fairness Act Help you! New Mortgage Foreclosure Program for the State of Washington. A little known Mortgage foreclosure program went into effect in Washington State in 2011.  It is called the Washington foreclosure fairness act (FFA).  This program is for you if you need help paying your […]Read More »
  • Should I Use My Stimulus Check for Bills?

    Should I Use My Stimulus Check for Bills?

    Like millions of Americans, most of us will be getting some sort of a stimulus check in the next couple of weeks. When we hear the word stimulus we understand that it is to stimulate the economy but that doesn’t mean going out and buying the latest television or blowing it on something nonessential. Stimulating […]Read More »