In most cases, at least once. In the “341 meeting” (a meeting of creditors), a bankruptcy filer will be briefly questioned on the specifics of their filing. There is also an opportunity for creditors to challenge a bankruptcy filing and ask questions at this meeting. Generally, most creditors will not show to your 341 meeting but it is their right to do so if they choose.

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Nothing. Bankruptcies are available mainly to help debtors but under law it is a creditors right to know whether or not a potential borrower has filed bankruptcy.

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Bankruptcies appear on credit reports for between 7 and 10 years and creditors specifically check credit reports for bankruptcies during loan approval determination. Bankruptcies found on credit reports will not prevent all loans from being accepted, but in general it takes years to build up enough credit after a bankruptcy for creditors to start disregarding the bankruptcy appearing on a credit report.

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Bankruptcies have long been clouded in confusion and myth and much of what most people think they know about bankruptcies is false. Common misconceptions usually stem from third party accounts, exceptions taken as generalities, and pure misunderstanding of what certain terms that relate to bankruptcy mean.

Myth: Bankruptcies eliminate all debt

The most common bankruptcy myth is that bankruptcies allow individuals to get rid of all of their debts and start over fresh. Although many debts can be discharged through bankruptcy, debts discharged through bankruptcy are typically only consumer debt such as credit cards and short term loans. Debts such as mortgages, student loans, spousal and child support, and criminal or civil judgments are considered non-dischargeable debts and cannot usually be resolved through bankruptcy.

Myth: All property and assets are lost during bankruptcy

A myth which continues to remain extremely popular is that all property and assets are lost during bankruptcy and individuals need to forfeit their home, car, and retirement to file for bankruptcy. There multiple types of bankruptcy and each deals with assets and property differently. In general , certain types of assets such as approved retirement accounts and spousal support can almost never be collected upon in a bankruptcy proceeding, and others such as homes and cars can be protected from sale assuming their total value falls within an individual’s allowable exemptions budget. Protected property and assets remain the property of a bankruptcy filer during bankruptcy filings and following discharge assuming they make full payments on each item since not all debts are discharged during bankruptcy.

Myth: Bankruptcy always takes 10 years

Another common misconception about bankruptcy which is based on some truth is that all bankruptcies take years to discharge. Although most types of bankruptcy do take well over a year to discharge debts, chapter 7 filings allow individuals to receive discharge of all dischargeable loans usually within 4 months of initial filing. The quick time associated with chapter 7 filings make them ideal for individuals with few assets, considerable debt, and a need start over financially quickly. Chapter 7 bankruptcies offer filers the chance to begin rebuilding long-term wealth within a year of their initial filing.

To learn more about your bankruptcy filing options, contact one of our experience attorneys here at the Norton Law Offices. We have years of experience and are available to talk to our perspective clients about all options, including those you may not even know exist.

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When faced with significant debt, looming foreclosure, and past due notices it can seem like solutions are few and far between. However, there are many options that exist to help individuals afford unmanageable debt and bring their debt burden under control. Each of these forms of debt relief has its own advantages and disadvantages, but most require some amount of time, usually at the very least a month of waiting for creditors to process a claim or restructure debts. Surprising to most individuals, is the fact that the most immediate form of relief from significant debt, above $10,000 dollars, is a chapter 7 bankruptcy.

Chapter 7 bankruptcy is the fastest form of bankruptcy available

Credit counseling and debt renegotiation and restructuring give individuals quick relief to a small degree, often lowering monthly payments by 20–30 percent but requiring individuals to continue paying on oppressive debts. A chapter 7 bankruptcy is often seen as the quickest option to resolve debt because it can be used to resolve over $20,000 of debt within four months. Chapter 7 bankruptcies have many significant drawbacks, but can get the creditors to stop calling within days of confirmation. Although most other forms of bankruptcy take longer to discharge debts, they all offer filers quick relief from the constant and painful calls from creditors and threats of liens.

Credit counseling helps debt become manageable

One form of immediate relief which has the least risk and disadvantages is credit counseling. Credit counseling can help individuals look at repaying debts differently from day one and often results in making monthly payments more manageable the very first month. In tandem with credit counseling, renegotiating the terms of loans and reviewing refinancing options can result in a significant decrease in monthly payments and often leads to decreased interest rates. Although credit counseling and renegotiating loans will not make loans “disappear”, they can make debt repayment more manageable and can contribute to long-term wealth accumulation.

We at the Norton Law Offices are experienced in bankruptcy law but are also able to help our clients review additional debt resolution options. If you are considering bankruptcy, or another form of debt resolution, consult one of our qualified attorneys today to learn more about your options.

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