Bankruptcy Questions and Answers

Crushing debt is a reality for millions of Americans from all walks of life. Common sources of debt include medical bills, mortgages, credit cards, or other personal loans. Anyone can find themselves in a situation where they cannot pay their way clear of these debts, and the bankruptcy code was specifically written to give you a way out – a fresh start. If you feel prepared, simply enter your zip code to the right to talk to an attorney today. If you’d like to learn more first, we’re proud to provide this service where you can ask a question anonymously and receive answers from local attorneys, usually within days!

There are many questions you’ll face when considering bankruptcy, and we’ve assembled answers to some of them right here for you to browse. Click on any question below to read responses from attorneys. Here are some bankruptcy basics to get you started.

Chapter 7 Bankruptcy

In Chapter 7 Bankruptcy, many debts can be completely eliminated. Not all debts can be addressed this way, but medical bills, credit card debt and utility bills may be wiped out. In many cases, you may need to give up some property to help repay debts, but state laws allow you to keep certain assets.

Chapter 13 Bankruptcy

Unlike a chapter 7 bankruptcy, in a Chapter 13 Bankruptcy a creditor works out a payment plan to repay their debts. Some debts, like credit cards or medical bills, may also be reduced through a chapter 13 bankruptcy. Other debts, like mortgages or auto loans, can be renegotiated with lower payments to let you keep your property and pay off your lenders.

Life After Bankruptcy

Bankruptcy has an impact on your credit report for up to a decade, depending on the specifics of your bankruptcy. But once you’ve eliminated your overdue bills and begin handling your credit responsibility, you can immediately begin rebuilding your credit score. The reality is that many Americans end up with a better credit score in the long run because of the fresh start that bankruptcy provides.