One you decide to file bankruptcy, it is normal for you to have lots of questions. The first thing you need to do is hire a law firm such as Sean C. Paul to figure out what kind of bankruptcy you should be filing. Chapter 7 and Chapter 13 are the two most commonly filed bankruptcies. Chapter 7 bankruptcy is for someone who wants to wipe their slate clean; Chapter 13 bankruptcy is for someone who wants to pay back all of their debt. In addition to choosing what kind of bankruptcy you want to file, it also comes down to what kind of bankruptcy you qualify for. While most people would rather file Chapter 7 bankruptcy, not everyone qualifies for it.
A bankruptcy attorney is going to tell you that Chapter 7 is going to wipe out most of your personal debts. The only exceptions would be secured debts which include child support, student loans, taxes, court fees, and spousal support. Credit card bills and unpaid utility bills would be wiped clean in most situations.
Filing Chapter 7 is also going to postpone a foreclosure. This is because a foreclosure is a process that is initialized when you owe debt that you have not been paying. When you file a petition for bankruptcy all of your debts are placed on hold while you are in what is known as an automatic stay. While you are in an automatic stay your debt collectors are not allowed to contact you, try to collect money from you, or punish you for owing them money. In addition to postponing a foreclosure, filing bankruptcy would postpone an eviction.
Once you have filed bankruptcy you will be able to receive credit. Unfortunately, you are still going to be considered a liability which means most credit card companies are going to offer you very poor rates. It is also not uncommon for them to only want to offer you a secure credit card.
One of the biggest perks to filing bankruptcy is the fact that you are not going to receive any more of those annoying phone calls during the entire process. This is because legally, creditors are required to leave you alone. In fact, the only thing they can do is contact your lawyer regarding your debt.