FAQ
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Bankruptcy
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Bankruptcy is a court process by which an individual or business seeks to discharge or re-organize their debt.
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Bankruptcy provides a legal remedy to overwhelming debt. For individual debtors, bankruptcy can protect your assets, save your home from foreclosure, and is most often more affordable than debt settlement or negotiation.
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No. While bankruptcy will be a negative on your credit report, most people are surprised by how quickly their credit rebounds. Bankruptcy is not a bar from obtaining credit in the future, rather it will be one factor your bank uses to determine if they wish to extend you credit. Many debtors are able to get new credit cards and car loans within a month or two of filing for bankruptcy. It will likely take 1-3 years to get a new home mortgage after filing.
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Yes, bankruptcy can stop foreclosure and eliminate second mortgages. If you are facing foreclosure, the longer you wait to address the situation the more difficult it becomes. As soon as you know you are having problems paying your mortgage, call Kovacs Law, P.C. for a free consultation.
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No. As soon as you file bankruptcy your creditors are stayed (legally barred) from contacting you. There will be no more harassing phone calls after your case is filed with the court.
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Chapter 7 bankruptcy will be listed on your credit report for 10 years and Chapter 13 will be listed for 6 years. However, having a bankruptcy listed on your credit report is not a bar from receiving new credit. Most debtors are able to obtain car loans and new credit cards in 1-2 months after filing bankruptcy.
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Most debts are discharged in bankruptcy. There are a few types of debts that do not get discharged, including most taxes, child support, alimony, and student loans.
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No. If you are married, you can either file as an individual or as a married couple. The advantages of filing as a married couple include saving money on legal fees, court filing fees, and counseling fees, as well as eliminating all the debt for your entire household rather than just one spouse. The advantages of filing as an individual include that the non-filing spouse's credit will not be negatively impacted.
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You can keep your car, house, and all your assets in bankruptcy. In fact, many people who file bankruptcy do so to protect their home, car, and other assets from creditors.
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Yes. If you are currently under a wage garnishment, fling bankruptcy will stop the garnishment as soon as the case is filed. If you are being threatened with a wage garnishment, bankruptcy will prevent your creditors from ever attaching your wages.
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You may have legal defenses to the lawsuit, including laches and the statute of limitations. Additionally, you may have counter claims against the Plaintiff that entitle you to collect money damages. Bankruptcy may also be an alternative. Bankruptcy will stay or stop the lawsuit as soon as your bankruptcy case is filed.
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