Frequently Asked Questions . . . About Bankruptcy

We know you have questions about bankruptcy. Many of those questions may be answered right here. But if not, please call 1-800-BANKRUPT. We're ready to help.

• Who can file?
  You must reside or have a residence, place of business or property in the United States. As of October 17, 2005, the new time limit for filing a Chapter 7 is now eight (8) years from the discharge date of a previous "7" filing. The time limit for a Chapter 13 is four (4) years from the discharge date of a previous "7" and two(2) years from the discharge date of a previous "13". To find out if you qualify, call our attorneys at 1-800-BANKRUPT.
• What are the most common reasons people file?
  Unemployment (loss of income), large medical expenses or credit card bills, the cost of divorce and other unexpected financial expenses are the most common reasons.
• Can I stop the bill collectors from calling?
  One of the major benefits of filing for protection under Chapter 7 is that many creditor actions are stopped. This means that debt collection efforts and foreclosure are halted.
• Does my spouse have to file?
  Not necessarily. In some cases where only one spouse has debts, or one spouse has debts that are not dischargeable, it might be advisable to have only one spouse file. An attorney at 1-800-BANKRUPT can provide more details.
• Will my employer know if I file? Can I lose my job?
  Under normal circumstances, unless your employer is a creditor, your employer will not know. You cannot lose your job just because you filed. Bankruptcy laws prohibit discrimination based on a debtor filing for protection under the bankruptcy laws.
• What happens after filing for bankruptcy?
  Our clients say they feel relief after filing bankruptcy. Without stressful phone calls from creditors and foreclosure threats, a sense of relief is understandable. For others, bankruptcy is the fresh start that lets you take control of your life. With finances and debt under control, many people are able to live within a budget, curtail spending, stay out of debt, start a savings plan and rebuild credit - and their lives.
• Is bankruptcy a better option than credit counseling or debt consolidation?
  At 1-800-BANKRUPT, we believe bankruptcy is the more proactive choice for taking control, getting your financial life stabilized and starting fresh.
• Credit counseling means negotiating with creditors and setting up a debt management plan. But unlike bankruptcy, creditors don't have to accept it and if you miss payments under the plan, you're back in the same situation as when you started.
• Debt consolidation means taking out one big loan to cover all your smaller ones. It can be an expensive process that may not solve your financial problems and because it's usually a home equity loan; could put you in a worse situation if you don't make the payments. An attorney at 1-800-BANKRUPT can advise you.

Have we answered your questions? If not, or if you want more information, set up a free, no-obligation consultation with a 1-800-BANKRUPT attorney today.