Frequently Asked Questions About Bankruptcy:
Answers from a Queens Bankruptcy Attorney
What is the difference between Chapter 7, Chapter 11, and Chapter 13 Bankruptcy?
Chapter 7 is a liquidation process; it is the most common form of bankruptcy in the U.S.
Chapter 11 is a reorganization process available to businesses and individuals.
Chapter 13 is reorganization bankruptcy that allows individuals to pay off their debts over the course of several years.
Are there bankruptcy alternatives?
Yes – Bankruptcy is not for everyone. A consultation with a Queens bankruptcy attorney can help determine if filing for bankruptcy is right for you. There may be better options depending on your financial situation, including bill consolidation, debt consolidation, debt settlement, or a deed in lieu of foreclosure.
How will bankruptcy affect my spouse?
Your husband or wife will not be penalized or expected to pay your debt as long as he/she did not sign a contract for your debt. If you file for bankruptcy in New York, your spouse is not brought into bankruptcy with you. And you and your spouse have separate credit files, so your debts should not affect your spouse’s credit as long as he/she does not file jointly with you for a loan in the future.
Contact a Queens bankruptcy attorney if you have questions about filing jointly for bankruptcy.
Can I get help with creditor harassment?
Yes – Creditor harassment is illegal. Creditors must follow certain guidelines when it comes to how often, when, and where they can contact you, as well as how they can act towards you. If creditors are call you at all hours, showing up at your workplace, calling your friends and family, or using abuse language, then you have a right to put an end to this unlawful behavior with the help of a Queens bankruptcy attorney. Once you file bankruptcy, creditors are no longer allowed to contact you.
Can I be fired for filing for bankruptcy?
No – U.S.C. Sec. 525, prohibits an employer from terminating employment or discriminating against you because you filed bankruptcy.
Will filing for bankruptcy get rid of all my debt?
The type of bankruptcy you choose and your financial circumstances will affect what kinds of debt are covered. Certain kinds of debt, such as credit card debt and personal loans, can be covered, while other kinds, like student loans and child support, may not be covered. Speak with the Law Offices of Bruce Feinstein, Esq. to see how much of you debt is covered by bankruptcy, and if you need to take a means test to determine your eligibility for relief.
Will I be able to get credit after filing for bankruptcy?
Yes – Filing for a Chapter 7, Chapter 11, or Chapter 13 bankruptcy may stay on your credit report for up to 10 years, but it does mean you cannot get credit, or that your credit will be adversely affected during that period. In time you will be able to secure credit, get mortgage loans, and rebuild your credit. Remember: filing for bankruptcy is an opportunity to get your life back on track, not derail it.
I filed for bankruptcy in the past, can I file again?
You can file again for bankruptcy; there are different waiting periods depending on the type of bankruptcy you choose. However, judges do have the ability to reject multiple bankruptcy filings if they feel a debtor is abusing the law. Get in touch with a Queens bankruptcy attorney to see if filing for bankruptcy is right for you, or if there are bankruptcy alternatives available.