| Bankruptcy FAQ's |
|
| How Fast is Chapter 7 Bankruptcy? |
The short answer is that Chapter 7 bankruptcy cases can take as little as four months to six months. |
| |
How Long Will Chapter 7 Bankruptcy Be On My Credit? |
Chapter 7 bankruptcy can stay on your credit for a total of 10 years after filing. However, most often it will not show up on a general credit check after 5 years. |
| |
| How Can I File Chapter 7 Bankruptcy? |
To file for Chapter 7 bankruptcy, you must meet a few qualifications. One qualification includes comparing your income to the median income in Texas. If your income is lower than the median income in your state, you can file for Chapter 7 bankruptcy. However, if your income is greater than the median income in your state, other calculations regarding your income and allowable expenses are required to determine whether or not you can file for Chapter 7 bankruptcy, this is called the Means Test. |
| |
Who Can File Chapter 13 Bankruptcy? |
Most anyone can file a Chapter 13 bankruptcy. In one sense, it's easier to qualify for Chapter 13 bankruptcy than for Chapter 7 bankruptcy. There's no means test for Chapter 13 bankruptcy, and some debtors who cannot qualify for Chapter 7 bankruptcy choose to file under Chapter 13 bankruptcy instead. However, Chapter 13 bankruptcy requires a regular income that will allow you to create a budget and make predictable and reliable payments to the trustee. Further, if you are facing a pending Foreclosure, this Chapter will provide you more protection than a Chapter 7. |
| |
Is Chapter 7 or Chapter 13 Bankruptcy Better?
|
The answer to this question depends on your specific circumstances. Generally speaking, Chapter 7 bankruptcy is better for people who have a lot of unsecured debts, like credit card debt and medical bills. If you don't have much property, your income is low, and most of your debts are unsecured, you might want to consider Chapter 7 bankruptcy. Chapter 13 bankruptcy, on the other hand, tends to be a better option for those who have regular income and non-exempt property they'd like to keep. A local bankruptcy attorney can review your specific financial circumstances and advise you as to which type of bankruptcy protection might be best for you. |
| |
How Can I Rebuild My Credit After Bankruptcy? |
It is easier than ever to rebuild your credit post-bankrupcty. Here are some helpful tips to successfully rebuild your credit:
1. Open a checking or saving account. Lenders look at this as a way to determine your responsibility with money.
2. Open accounts with stores or gas companies. These are items that you are going to purchase anyway, so you might as well use them to rebuild your credit.
3. Take out a loan with a family member or friend as a co-signer, and pay this loan on time.
4. Try to stay away from “Payday Loans” as they are high interest and a credit trap.
5. Purchase a used car from a dealership that advertises that they are friendly towards people that have filed bankruptcy.
There are many other tips for improving your credit post-bankruptcy. By following a few of these suggestions, it can help to rebuild your credit before you know it. |
| |
| FREE Evaluation! |
