1. Will my credit be affected by filing bankruptcy?
Our bankruptcy lawyer has found that some people's scores increase after they file for bankruptcy. People whose scores are between 450 and 550 may see an immediate increase of up to 100 points. People who have scores between 600 and 700 generally do not see an effect while those with high scores above 700 may expect a drop of 40-80 points.2. Are wage and bank account garnishments stopped by bankruptcy?
When the automatic stay is issued, garnishments stop. Your bankruptcy attorney will file a petition with the court and then send your case number to the garnishing creditor.3. Are repossessions stopped by bankruptcy?
Chapter 7 will temporarily halt repossessions while your bankruptcy case is pending. Chapter 13 is typically the only chapter that can provide you with the ability to save your car permanently.4. Will I lose everything?
No, you will not lose everything. There are multiple exemptions for different types of property.5. Will I be able to buy a car or house after bankruptcy?
You are more likely to be able to purchase a car after a Chapter 7 bankruptcy. A mortgage lender will normally want to wait at least 2 years after your bankruptcy discharge.6. What is a "buy back"?
A "buy back" is an option within a Chapter 7 bankruptcy that allows the debtor to make an offer to purchase their unencumbered, non-exempt assets back from the Trustee. 7. Do I have to file bankruptcy with my spouse?
No, you may file as an individual without the spouse or their approval. However, to determine if the individual qualifies, you must include your spouse's income as well as all income and expenses from the individual's household.8. If I have a co-signer/co-debtor will they be affected by my bankruptcy?
As long as the debt is paid on time, a co-signer/co-debtor's credit should not be affected. Although, they are still liable for the debt.9. Is there a set amount of time I may stay in my house after surrendering it in bankruptcy?
No there is not a set amount of time. The time you may remain can be as long as a few months, or as short as 20 days. This time is determined on how far along the state court's foreclosure proceeding is at the time you file.
10. Are there pitfalls to filing a Chapter 7 bankruptcy?
Of course, but that is why you need a great bankruptcy attorney. We will work diligently to assure that you will not lose assets and money that you could've certainly otherwise retained.11. Should I try to move my assets around to be in my friend's or children's name so that they don't get taken away?
Absolutely not, trustees will be able to pull bank and payment statements, and will be able to connect accounts and assets to you. It is always a good policy to be honest during court proceedings.
If you have additional questions, schedule your free consultation with our Sarasota firm by calling (941) 906-1416.