Bankruptcy FAQs
Q. How long does the bankruptcy process take?
A. In most cases, the entire bankruptcy process, from filing to discharge, takes about 3 months. A typical Chapter 7 Bankruptcy proceeds as follows:
- Initial Consultation, which takes about one hour.
- Bankruptcy Filing, which involves filing the necessary paperwork with the Bankruptcy Clerk to stop creditors from taking further action.
- Meeting of Creditors. About 30 days after the filing, a meeting between your creditors, a trustee, yourself, and an attorney is held to decide what you may keep and what must be used to discharge some of your debt.
- Receive Discharge Paperwork. About two months later, you receive your discharge, which is a permanent court order barring creditors from ever attempting to collect on the debts that have been discharged by the court.
- Begin to Reestablish Credit. Even though a bankruptcy stays on your credit report for 10 years, you should be able to establish a good credit history in about two years, and in some cases as little as six months. However, you must have the ability to pay your new debts and maintain a good credit history from the time of discharge.
Q. How long will a bankruptcy stay on my credit report?
A. A bankruptcy stays on your credit report for 10 years. However, once your bankruptcy is complete and your debts have been discharged, you can establish a good credit history by making regular, timely payments on new debts. If you continue to make regular payments you may be able to establish a good credit history in 2 years, and in some cases as little as 6 months.
Q. How long will it take after bankruptcy before my creditors stop calling?
A. Creditors must stop calling as soon as they are aware that you have filed for bankruptcy. The law imposes an "automatic stay" against all creditors of a bankrupt debtor. Usually the bankruptcy court in charge of your filing will mail a notice to all listed creditors, but this may take a few weeks. A debtor or debtor's attorney may also inform creditors of pending bankruptcy proceedings by giving them the case number and date of bankruptcy. Any lawsuits a creditor may have filed against you will also be stayed. If creditors do not desist after receiving notice of the bankruptcy, they may face penalties from the court.
Q.Will I be able to keep my credit cards after bankruptcy?
A. If your credit cards do have past due balances during your bankruptcy, you may still be able to keep them by negotiating with the creditor and obtaining the court's approval. However, this may or may not be in your best interest in regard to your other debts, and you should first consult an attorney. In any case, a debtor must not run up charges on a credit card account before bankruptcy. This is generally considered fraud, and fraudulent debts cannot be discharged.
Q. Does my spouse have to file for bankruptcy if I file?
A. Married couples can file for bankruptcy jointly or one spouse can file alone. However, the court will still include all community property assets in the bankruptcy, even if only one spouse files. In addition, the spouse who does not file will not be relieved from paying debts for which the couple is jointly liable. When spouses do file jointly, both spouses must agree as to whether federal or state law will apply to their bankruptcy.
Bankruptcy is complex, and approaching it the right way can mean the difference between a new beginning and losing valuable assets. At the Law Office of Russell Van Beustring, we provide our clients advice from a certified specialist with experience in all aspects of bankruptcy. For a free consultation to discuss your options, contact us today.
