Is credit counseling required for bankruptcy?
Yes, you will be required to take a credit counseling class before filing either Chapter 7 or Chapter 13 bankruptcy. An additional credit counseling course will also need to be taken after filing the case. Both courses can be completed online from the comfort of your home.
How much debt do I need to file for bankruptcy?
There is no minimum amount of debt required to file bankruptcy in Florida. However, the costs to file for bankruptcy typically range between $1,500 – $2,500. Therefore, you should have at least more debt than it costs to file for bankruptcy. Otherwise, the costs may outweigh the benefit.
Can I keep credit cards open after bankruptcy?
Unfortunately, banks usually reserve the right to cancel credit card accounts at any time. Therefore, they can close your account regardless of whether you file for bankruptcy or not. Additionally, you will likely not be able to force a credit card company to keep the account open if they insist on closing it.
Should I stop paying my bills before filing bankruptcy?
Most unsecured debts are discharged in Chapter 7 bankruptcy. While secured debt requires collateral to support a loan, such as property, unsecured debt refers to loans that don’t have collateral, like credit cards and medical bills. Whether you are current on your monthly payments or not, you will still be eligible to have your… Read More »
What is the difference between Chapters 7 & 13
Chapter 13 is considered a restructuring bankruptcy because the debtor makes payments to their creditors according to a court-approved payment plan. On the other hand, Chapter 7 does not involve a payment plan. Instead of making monthly payments, the bankruptcy trustee will liquidate non-exempt assets to pay creditors.
Will bankruptcy stop foreclosure?
Yes, an automatic stay is implemented as soon as a Chapter 7 or Chapter 13 bankruptcy is filed. The automatic stay will immediately stop all debt collection harassment, including foreclosure auctions.
Can I file bankruptcy without a lawyer?
A bankruptcy lawyer can ensure your rights are protected and help prevent the many pitfalls of bankruptcy. It is highly recommended to obtain an attorney, but filing Chapter 7 or Chapter 13 bankruptcy is not necessary.
How long does bankruptcy stay on my credit?
Many car loan lenders and other financial institutions have no required waiting period for a new loan after bankruptcy. The government-sponsored mortgage programs with F.H.A., Veteran Affairs, and Fannie Mae require a borrower to wait two years before becoming eligible for a mortgage.
If they are garnishing my wages, can I still do debt settlement?
A wage garnishment does not necessarily prevent you from a settlement. However, garnishment makes negotiations difficult because the bank may not have the incentive to accept less money. Generally, it is best to dismiss a garnishment before attempting debt settlement.
