If you are considering bankruptcy, you probably have a lot of questions. That’s okay! Here are some common questions about bankruptcy that we are asked:
How Will Bankruptcy Affect My Credit?
If you are considering bankruptcy, there is a pretty good chance that your credit is already bad. While a bankruptcy will stay on your credit report for years after you file, most people have a better credit score after completing bankruptcy.
Do I Have to List All My Property and Assets?
The simple answer is yes. Unless, you do not mind having perjury charges filed against you. When you file a bankruptcy, you are required to answer all questions on the forms truthfully.
Do I Have to Include All My Debts in the Bankruptcy?
Yes. You must include a list of all your debts when you file a bankruptcy. This is required by law. If you intentionally leave out a debt or an asset, it could be considered perjury.
Can I Keep One or More Credit Cards If I File a Bankruptcy?
Not likely. When filing for bankruptcy, you must list of all of your creditors. This means everyone you owe money to at the time of filing. These creditors will find out that you have filed by getting a notice from the court. Do you have a credit card on which you do not owe any money? If so, you do not have to list that creditor in the bankruptcy papers, so they will not receive notice from the court. However, there is a chance that they will find out about your bankruptcy from other sources. This could result in the cancellation of your credit card when you file the bankruptcy, despite the fact that you do not owe anything on that account.
What Will Happen to my Automobiles?
Are you still making payments on the car? If so, you have choices. First, you can return the car to the lender, in which case you will not be liable for any deficiency you may owe. Or, you can keep the car and continue the payments. If you choose to keep the car, the lender may require you to sign a reaffirmation agreement. This means that you promise to make the payments notwithstanding the bankruptcy. If you own the car outright, whether you can keep it will depend on the applicable exemptions.