If you’re in the position where bankruptcy is one of the only feasible options for you, you’re mind is probably filled with numerous questions. After all, this is most likely the first time you’ve filed for bankruptcy, so it’s a whole new experience for you. Here are the answers to five of the most common questions people ask Minnesota bankruptcy attorneys.
1. How soon will the harassment by creditors stop?
The harassment will stop as soon as you file for bankruptcy. The law states that creditors must stop any and all attempts to collect the debt, including calls, law suits, garnishments and letters.
2. Will I lose everything I own?
Not usually. Most people who file bankruptcy are able to retain all their belongings, including their home, car and personal possessions. In fact, you may be at more risk to lose your property through foreclosure or repossession if you continue to struggle to pay your debts and are unable to do so. Of course, there could be exceptions to this rule. Your Minnesota bankruptcy attorney will help you protect your belongings.
3. Who will know that I filed?
Although your bankruptcy is a matter of public record, normally only you, the legal representatives, your creditors, and the IRS are actually aware of the proceedings. No one else is notified of the bankruptcy.
4. Will all my debt be eliminated?
It depends on what type debts you owe. In a Chapter 7 bankruptcy, student loans are usually disqualified, as are recent tax debts. You may get relief from some of your student loan debt if you file Chapter 13. There are other exceptions to the rule as well. Speak to your Minnesota bankruptcy attorney to see which type of bankruptcy is best for you.
5. Will I ever get credit again?
Even though a bankruptcy may stay on your credit report for up to 10 years, you can reestablish your credit. You can start immediately by making timely payments on all your bills. You may also want to look into getting a secured credit card. There are also programs to help you buy a car and within in a year or two, if you maintain your credit, you may even be eligible to get a home mortgage.
Filing bankruptcy creates many questions. Do not hesitate to ask a bankruptcy attorney in Minnesota to dispel the bankruptcy myths and give you the right answers.
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