I am a co-signeri for a debti, how does bankruptcyi affect my obligation?
If the debt is a dischargeable debt then you will not have to pay it. However, the cosigner will become primarily responsible for the debt. Be sure to list the co-signer as a creditori in your schedules as they have a contingent claim against you.
Can I keep my house after bankruptcy?
Depending upon which exemption scheme is selected and your circumstances, you may exempt up to $100,000 in equityi. When calculating your equity you should use a value that is based upon a forced liquidation as opposed to the best selling conditions to arrive at a value for your home. Once you know the value, subtract the amount owed plus selling and transfer costs from the value to calculate the equity. In a depressed market, liquidated properties are often valued less than what we like to think the property is worth.
Can I keep my crediti cards after bankruptcy?
Under some circumstances you may keep your credit cards. There are many factors which must be considered. Some of those include the credit card balance at the time of the bankruptcy, what the credit card company is willing to do and your ability to pay the present and future credit card debt.
Will I lose my job?
No. Bankruptcy laws prohibits discrimination based upon a debtor filing for protection under the bankruptcy laws.
Can I go to jail if I file bankruptcy?
No. There are no debtor's prisons in the United States.
Will my employer find out about my bankruptcy?
Under normal circumstances, unless your employer is a creditor, your employer will not know. However, bankruptcy cases are public information and are usually printed by the newspapers.
Will bankruptcy stop a wage attachment?
Yes, assuming the creditor that placed the wage attachment was included in the bankruptcy.
Will bankruptcy stop a judgmenti?
Yes. Most civil judgments are stopped by bankruptcy.
Will a bankruptcy remove a lieni?
Under some circumstances once the bankruptcy proceedings have started, special motion can be filed to remove certain liens. It will take a bankruptcy court order to remove them. This is a complicated area of the bankruptcy law and an attorney should be consulted.
Will bankruptcy stop an evictioni action?
Perhaps. However, this will only delay the inevitable. The owner is entitled to possession of his property and at best you will be able to remain in the property until you have received your discharge from bankruptcy or the landlord obtains an order from the bankruptcy court. I must caution you that if the only reason you filed the bankruptcy is to stop an eviction then this might be considered an abuse of Chapter 7. If the bankruptcy court finds that this is true then the court can immediately dismiss the bankruptcy and impose other legal and monetary sanctions on you.
Will bankruptcy stop a foreclosurei?
Yes. However, a home is an asseti usually secured by a deedi of trusti. The mortgagei company is entitled apply to the court for relief from the automatic stay, the order preventing creditor action by virtue of the bankruptcy. Depending upon several factors, you may be able to prolong a foreclosure until you have received your discharge from bankruptcy. Usually, to keep a home that is in foreclosure you will have to make a deal with the notei holder.
I am divorced, will bankruptcy wipe-out my obligation to pay community debts?
In general, you will be discharged from all dischargeable community debts. However, you should discuss this with your family law attorney to understand the other implications of the filing of a bankruptcy during the pendency of a dissolution action (divorce case). Also, remember that if you are discharged from community debts, your spouse is responsible for the entire balance owing on the debt. Put another way, they shift the responsibility on to you.
Are there any debts that I can't wipe out in bankruptcy?
See Bankruptcy and My Bills
Are there alternatives to Bankruptcy?
The decision to file bankruptcy is a tough one to make. In many situations, it's the right decision though. However, there are times when there are better options.
If the biggest reason you're thinking about bankruptcy is because of harassing phone calls from creditors, then there are easier ways to handle the problem. The first option is to simply ask them to quit calling you. If that doesn't work (and it probably won't), simply block their number so that they can't call you. There are also federal and state laws regarding debt collectioni, so if you feel that your creditors are violating those laws you should take action. For more information, see What to Do If a Bill Collector Crosses the Line.
Another option to bankruptcy is debt consolidationi. Again, this option isn't for everyone but it is an option that you should at least investigate. Mortgage Knowledgebase offers a referral service for debt consolidation to help you find an honest ethical company to deal with. To get started on this route, just complete our debt consolidation form.
