Making any decision that will have a significant impact on your life should only be done after thorough research. When you know what to expect out of a situation you are better prepared to handle it, and can move forward with confidence. If you are having money problems, the best thing you can do is find out what repayment option will help you the most. This is because when a solution is found to your financial troubles, a huge weight is instantly lifted and this allows you to better focus on the things that matter, like your family and your work. One popular way to ease the burden caused by overwhelming debt is to file for bankruptcy. But, there are a lot of myths out there about what bankruptcy is all about, and having a good handle on the accurate facts before you file will help.
The top ten FAQ’s about bankruptcy include:
- Can I file a case and still keep my house? The answer is yes, but you will still have to make the house payments.
- Will I have to give back my car? Again, you can keep your car, but you do have to continue making the payments.
- Will I lose my job if I file bankruptcy? If your employer fires your and states as the reason for doing so is that you filed bankruptcy, you can bring an action against your employer.
- What is the automatic stay? The automatic stay is a provision of the Bankruptcy Code that prohibits creditors from making contact with you the minute your case is filed.
- What types of actions are prohibited once the automatic stay is in place? You cannot be called or written by a creditor regarding their debt, and all collection activity against you (including pending lawsuits or garnishments) have to immediately stop.
- Who is the Trustee? The Trustee is appointed by the Court, and is an impartial individual charged with the administration of your case. The Trustee does not represent you, and is tasked with making sure your case is filed completely and properly and that all documents regarding your income and assets are included. The Trustee might also look for an asset, such as a piece of collateral without a lien or exemption, which can be sold to pay some of your debts. This is rare, and if it happens in your case you can rest easy knowing your attorney will be looking out for your best interests.
- Will I have to see the Judge? Probably not. Most cases including only one court appearance, and that is an informal meeting shortly after you file. The parties present are you, your attorney, the trustee, and any creditor that wants to ask a question.
- How is notice of my case given to my lenders? When you provide the information needed to prepare your case to your attorney, part of that information includes a list of all your creditors and their addresses. This data is compiled onto what is called the creditor matrix, and the Court sends notice to everyone on the matrix when your case is filed.
- What do I do if I can’t afford the filing fee? You can seek permission to pay the fee in installments.
- Will my credit be ruined forever? No! In fact, you will probably receive some pre-approved credit offers pretty quickly after you case is over.
When your finances are to the point where bankruptcy is your option, it is understandable to be confused. Rather than try and tackle the law on your own, or come to your own conclusions about what you can and cannot do, call our office for help. We will give you the information you need to make a decision that is right for you.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.