1.
Can I get collectors off my back through bankruptcy?
The Bankruptcy Law offers an automatic stay that temporarily halts all collection actions, including garnishments, lawsuits, and calls from collectors, giving you breathing room to reorganize your finances.
2.
How long will my credit be affected after filing for bankruptcy?
Under Chapter 7, the bankruptcy filing remains on your credit report for ten (10) years. Under Chapter 13, the bankruptcy filing remains on your credit report for seven (7) years.
However, this does not mean you cannot access a loan during that time, nor that you have to wait that term to restore your credit. What it means is that each time you apply for credit, your credit report will show that you filed for bankruptcy.
The impact of both types of bankruptcy on your credit report will diminish over time. If you practice good credit habits, you will see your credit score recover more quickly.
3.
What happens after completing my bankruptcy process, whether Chapter 7 or Chapter 13?
After you complete the bankruptcy process, either by fulfilling all the requirements of Chapter 7, or with a payment plan under Chapter 13, you will receive a discharge order. This means that a collector or creditor cannot collect those debts again and you no longer have the responsibility to pay them; the debt has been discharged and you can begin to rebuild your financial life again, debt-free.
4.
Can I include water and electricity debts in the bankruptcy petition?
Yes. Debts for water and/or electricity can be included as long as they were incurred before filing the bankruptcy petition.
5.
What about traffic fines?
Yes. Traffic fines received before filing the bankruptcy petition can also be included.
6.
How long does the bankruptcy process take?
For Chapter 7, most cases take an average of four (4) to six (6) months to complete, from filing the bankruptcy petition to receiving the discharge order.
In Chapter 13, the process can take between three (3) and five (5) years to complete, depending on the approved payment plan.
7.
What debts are not dischargeable in a bankruptcy petition?
Alimony debts, student loans, and retirement debts. Government debts (Department of Treasury, IRS) can generally be included when they comprise the three (3) years prior to filing the bankruptcy petition.