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212-221-5999 • 49 West 37th Street, New York, NY 10018
What are the advantages of bankruptcy?- Once discharged through bankruptcy your debts are erased; in other words you are no longer responsible for paying them.
- What about my credit?
- The fact is that when lenders or other creditors review your credit report they rank bankruptcy as the worst.
- How long do I have to wait to rebuild my credit?
- You can rebuild your credit immediately with a secured loan or credit card. In fact you can even obtain these items while going through the bankruptcy process.
- How long does it take before my debt are discharged?
- Chapter 7 takes between 3 to 8 months;
- Chapter 11 can take from just under a year to many years;
- Chapter 13 can take several months while trying to get your repayment plan approved. However, the actual discharge is not final until you've met the payment plan requirements which takes from 36 to 60 months to complete.
- How long until my credit gets back to the point where I might hope to get a regular credit card or mortgage?
- Rebuilding credit depends on how aggressively you try to get back on track, but don't figure less than 1-3 years. Remember, you can always get a secured credit card or a mortgage with a low loan to value (LTV) and high interest rate, sometimes even still in the middle of a bankruptcy.
- How would I know if Chapter 7 is right for my situation?
- If you have very few assets with no property and your assets can be exempted then Chapter 7 may be right for you as long as you have no other obligations such as court ordered alimony, child support payments, criminal restitution, non-dischargeable taxes, or student loans. (list of non-dischargeable items) Many national creditors prefer that you file Chapter 7 if they cannot recover at least 50 cents on the dollar.
- Which bankruptcy chapter is the least expensive?
- Chapter 7 is the least expensive because you do not have to pay off the debts. The next least expensive is Chapter 13 where you repay about 10 cents on the dollar, followed by Chapter 11.
- Can I pick and choose which assets to put into a personal bankruptcy?
- No. Every asset you own must be included in the filing. After filing you may choose to exempt some of your assets.
- I thought bankruptcy stopped foreclosure? Can they still take my house?
- When you file Bankruptcy, you receive an "automatic stay" on court actions such as foreclosures and sheriff's sales. A creditor can still go into court and ask the bankruptcy judge for a "relief from stay", and if granted the creditor can proceed with court action to foreclose.
- What if I can't make any payments, should I file Chapter 13 or Chapter 7?
- If you truly cannot make payments on your home or other assets you're probably better off filing Chapter 7 and using the money you would have spent on Chapter 13 to survive on.
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