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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.

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