If you are thinking about filing for bankruptcy, there are many things that you should know before filing. At The Law Offices of Daniel W. Mitnick & Associates, P.C., we provide the best possible solution for your financial issues. We will guide you throughout the entirety of your case and help you obtain stability.
To help you get a general understanding of bankruptcy, we have answered questions that are commonly asked by our clients. Please take a minute to review them and ask our bankruptcy attorneys if you have any further questions.
How can bankruptcy help me?
Bankruptcy allows people to get rid of their debt burden and get a fresh start on life. It puts an automatic stay on creditors so that they aren’t able to collect your debts from the point you file.
Are there any alternatives to bankruptcy?
In some cases, debtors can negotiate with creditors to extend their loan, modify it, or negotiate a compromise. A bankruptcy attorney should be able to do this on your behalf.
Are there different types of bankruptcy?
There are six different types of bankruptcy:
- Chapter 7: liquidation bankruptcy for low-income debtors
- Chapter 9: bankruptcy for cities
- Chapter 11: reorganization bankruptcy for businesses or high-asset individuals
- Chapter 12: bankruptcy for farmers and fisherman
- Chapter 13: reorganization bankruptcy
- Chapter 15: bankruptcy for international cases
Most people use Chapter 7 or Chapter 13 when filing for bankruptcy.
Will I lose my house if I file for bankruptcy?
It depends. If you file for Chapter 13 bankruptcy, then you will not lose your house because of bankruptcy. Chapter 13 allows debtors to reorganize debts and pay them off, not requiring anything to be sold. With Chapter 7, on the other hand, debtors may be in danger of losing their home. Much of the time, however, a bankruptcy attorney can help you save your home.
How long will bankruptcy stay on my credit report?
Bankruptcy normally stays on your credit report for up to 10 years.
What types of loans cannot be discharged in bankruptcy?
There are a number of loans that the government will not allow debtors to discharge after filing for bankruptcy:
- Alimony and child support
- Student loans
- Tax debts
- Debts to government agencies or court fines and penalties
- Personal injury debts related to DUI
- Housing association fees
- Attorney fees for child custody and support cases
Have more questions?
Contact The Law Offices of Daniel W. Mitnick & Associates, P.C. for your complimentary consultation as soon as you can! We are highly knowledgeable and have more than 25 years of collective experience. You can trust us to resolve your financial issues as quickly and effectively as possible! Call now or fill out a free case evaluation to schedule your appointment.