The Most Frequently Asked Questions Concerning the Bankruptcy Process

1. Q. If I file a Bankruptcy, will I ruin my credit?
1. A. You should not consider Bankruptcy creditor protection unless your credit is already affected by Sheriff's sales, Wage garnishments, Repossessions, Foreclosures, Law Suits, Judgments, or Creditor Harassment, or if you anticipate any of these actions in the near future. You will actually be able to start rebuilding your credit after your Bankruptcy discharge. Yes, with the proper income you will be eligible to receive car loans, mortgages and even charge cards. However, we always caution our clients to be careful because you don't want to jump from the frying pan into the fire with your new creditors.

2. Q. What are the warning signs that my credit is bad enough to consider Bankruptcy creditor protection.
2. A. You should consider a Bankruptcy if you are the victim of the foreclosure process, an upcoming Sheriff's sale or eviction, an upcoming car repossession, wage garnishments, law suits, harassing creditor collection activity at home or on your job , difficulty in meeting rent or mortgage payments on time, use of credit cards and charge accounts to supplement cash and expand your income, commitment of more than 25% of your net monthly income for installment obligations, inability to build reserve savings to meet unexpected emergencies. Call the LAW OFFICES OF THOMAS R. HITCHCOCK & ASSOCIATES for a free consultation to learn how a Bankruptcy can immediately stop Sheriff's sales, foreclosures, wage garnishments, repossessions, creditor harassment and the like.

3. Q. What is the 7 year rule that everyone talks about?
3. A. The 7 year rule refers to the law that bars or stops someone from seeking Chapter 7 Bankruptcy relief for 7 years after they have filed one. In other words you can only file a Chapter 7 Bankruptcy every 7 years. It does not mean that you can't get credit for 7 years.

4. Q. How often can someone file a Chapter 13?
4. A. There really is no set rule as to how often someone can file Chapter 13 reorganizations of debt as long as one does not abuse the system or file a case in bad faith. In most cases, one is allowed to file another Chapter 13 if the first case is dismissed and if you have a positive change in your circumstances. In other words, if, since your last filing, you have a new or better job or if you have more regular income you could be eligible to file another Chapter 13 reorganization. This could be helpful to those who are facing a sheriff's sale of their home or a repossession of their car. However, we must warn you that you cannot file Chapter 13 after Chapter 13 and not make your payments. This would be considered a bad faith filing and your creditors would probably be against this. You must be in a financial situation and in a frame of mind to make a Chapter 13 work if you want to reorganize your debts.

5. Q. If I file a Bankruptcy, will I lose all my property?
5. A. Most people don't lose anything unless they don't want to keep it, the Law protects much of your personal possessions.

6. Q. Can I file a Bankruptcy if I have a co-signer on some of my debt?
6. A. Yes, you can file because there are ways to protect co-signers should you file.

7. Q. Does my spouse have to file with me on my Bankruptcy?
7. A. Your spouse does not have to file with you. However, you may discover that your spouse also owes many of the same debts you do and that it would be beneficial for your spouse also to file with you.

8. Q. If I decide to seek Bankruptcy creditor relief, aren't all Attorneys alike?
8. A. Attorneys are definitely not all alike. The field of bankruptcy is complex and believe it or not there are not that many attorneys who limit their practice to only bankruptcy. THE LAW OFFICES OF THOMAS R. HITCHCOCK & ASSOCIATES have helped countless numbers of people through their credit problems and offer a free consultation to educate you and help you to make an informed decision as to the best way to handle your credit problems.