Yes, they will! By law, all actions against
a debtor must cease
once bankruptcy documents are filed. Creditors cannot initiate or
continue any lawsuits, wage
garnishees, or even telephone
calls demanding payments. Secured
creditors such as banks holding, for
example, a lien on a car, will get the stay lifted
if you cannot make payments.
.
WILL MY SPOUSE BE AFFECTED?
Your wife or
husband will not be affected by your bankruptcy if they are not responsible
(did not sign an agreement or contract) for any of your debt. If they
have a supplemental credit card they are probably responsible for
that debt.
However,
In community property states, either spouse can contract for a debt
without the other spouse's signature on anything, and still obligate
the marital community. There are a few exceptions to that rule, such
as the purchase or sale of real estate; those few exceptions do require
both spouse's signatures on contracts. But the day to day debts, such
as credit cards, do NOT require both spouses to have signed.
Your bankruptcy lawyer will be able
to guide you in this regard.
WHO WILL KNOW?
Chapter 7 filings are public records. However, under normal circumstances, no one will know you filed for
Chapter 7. The Credit Bureaus will record your filing and it will
remain on your credit record for 10 years.
WILL I EVER GET CREDIT AGAIN?
Yes! A number of banks now offer "secured"
credit cards where a debtor puts up a certain amount of money
(as little as $200) in an account at the bank to guarantee payment. Usually the credit limit is equal to the security given and is increased
as the debtor proves his or her ability to pay the debt.
Two years after a
discharge, debtors are eligible for mortgage loans on terms as good
as those of others, with the same financial profile, who have not
filed Chapter 7. The size of your down payment and the stability
of your income will be much more important than the fact you filed
chapter 7 in the past.
The fact you filed
Chapter 7 or 13 stays on your credit report for 10 years. It
becomes less significant the further in the past the filing is. The truth is, that you are probably a better credit risk after bankruptcy
than before.
WHAT DOES IT COST?
It costs about $ 300 to file a Chapter 7 bankruptcy. A bankruptcy lawyer's fees vary but should be in the range of $ 1,000 to $ 2,000 . Many bankruptcy lawyers will give you a free initial consultation. You can keep the
fees down by being well organized and well prepared. You may
also be able to keep the fees down by not requiring the lawyer to
attend the meeting of creditors with you. Check this with your lawyer.
In some states such as Massachusetts, attorneys must attend the Section
341 meeting with the debtors otherwise attorneys are deemed to have
NOT represented the debtors. (The 341 Meeting).
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