Should I stop paying my bills before filing bankruptcy?
Most unsecured debts are discharged in Chapter 7 bankruptcy. Unsecured debts are loans that don’t have collateral, like credit cards and medical bills. The debts are eligible to be discharged regardless if you are current on the monthly payments or not.
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 if you file 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.
How much debt do I need to file bankruptcy?
There is no minimum amount of debt required to file bankruptcy. However, the costs to file for bankruptcy typically range between $1,500 – $2,500. Therefore, you should have at least more debt than what it costs to file bankruptcy. Otherwise, the costs may outweigh the benefit.
Is credit counseling required for bankruptcy?
Yes, you will be required to take a credit counseling class prior to filing either Chapter 7 or Chapter 13 bankruptcy. An additional credit counseling course will also need to be taken after the case is filed. Both courses can be completed online from the comfort of your home.
