The FAQs About Bankruptcy
When it comes to bankruptcy, there are several types. Here, we’ll primarily be talking about two types, Chapter 7 and Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is the option to choose should you be looking for a fresh start on things. This option can also be known as the liquidation option and this clears your slate.
Chapter 13 Bankruptcy is typically known as the reorganization option. There are a number of reasons why many people will choose this option- whether it is to help stop foreclosure on a home or to help consolidate debt.
FAQs
- Is my spouse affected? In Arizona, which is a community property state, one party can obligate the other without benefit of signature.
- Who Sees? When you file for a bankruptcy, the record becomes public. However, people are not going to know that you went into bankruptcy. Credit Bureaus will have a record of your bankruptcy and this is something that sticks on your credit report for 10 years.
- Is There a Cost? If you are going to be filing Bankruptcy there will be a cost associated with it. There are a number of lawyers that will offer a free consultation and this is a great way to find out exactly how much it will cost you to move forward with the bankruptcy.
- Can I Hold on to my Credit Cards? Whether or not you can keep your credit cards after you file for a bankruptcy is going to be up to the company your credit cards are through. You can discharge the card but the company still has a right to cancel even with a zero balance and it may be more difficult to reopen the accounts in the future.
- Will I Get Credit Again? There are now banks that are reaching out to help offer secured loans or credit cards to those looking to rebuild their credit. You will have to put a certain amount on the card and you will not be able to use it unless there is money on it.
What Cannot Be Discharged
When it comes to things that are discharged in a bankruptcy, there are some things you need to know. Discharges will release someone in debt from being liable for a specific form of debt. This is going to be permanent and is an order that prohibits any creditor from calling or taking any action to collect a debt. Some things that cannot be discharged in a Chapter 7 are:
- Child support
- Alimony
- Condo or other
association fees - Taxes or tax liens
- Debts for any type of malicious injury
- Debts for any fines or government penalties
- Debts for wrongful death judgments
- Student loans
- Debts from fraud or other sales representation
In a Chapter 13 Bankruptcy, the following things can not be discharged:
- Fines and restitution
- Debts obtained from fraud
- Withholding taxes from employers
- Debts that came after you filed your bankruptcy
What Can Be Discharged
If you are looking for what debts can be discharged from a bankruptcy they are:
- Car accident claims
- Claims of negligence
- Any tax penalty that is 3 yrs or older
- Any debt in your business
- Leases and rental agreements
- Credit card debt
- Judgments
- Guaranties
- Medical bills
These are just a few of the most frequently asked questions when it comes to filing bankruptcy.
