Bankruptcy Myths and Frequently Asked Questions
It would be a shame to lose your house or your car, or to continue to suffer creditor harassment and sleepless nights, because of misinformation about bankruptcy. Not every person who is in debt is a candidate for bankruptcy, but you owe it to yourself to get the facts and explore all your options.
The Law Office of Giles W. King provides sound legal counsel and quality legal representation in all aspects of personal bankruptcy. I am a Southaven bankruptcy attorney who has handled hundreds of consumer bankruptcy cases in DeSoto County and northwestern Mississippi, as well as surrounding areas of Tennessee.
To discuss bankruptcy and your unique situation in a free initial consultation, call my suburban Memphis office at 662-298-4597 or 888-549-3902 or send me an e-mail.
Common Questions and Concerns About Bankruptcy
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
In Chapter 7 bankruptcy, certain debts are wiped clean. You must meet certain criteria to file for a Chapter 7 discharge of debts. Chapter 13 bankruptcy is for debtors who exceed the income cut-off, who are behind on their mortgage or otherwise cannot file for Chapter 7. In Chapter 13, you repay part of your debts over several years and then the remainder is forgiven.
How do I decide?
I conduct a thorough study of your finances to determine if you qualify for Chapter 7, if you should file Chapter 13, or if you should not file for bankruptcy at all. You should definitely consult a lawyer before filing bankruptcy or negotiating with lenders or creditors.
Will I lose everything I own?
Most of my clients do not lose any property, but some assets may not be exempt or you may choose to surrender some assets. See What Assets Can I Keep?
What debts are covered by bankruptcy?
In general, unsecured debts such as credit cards, medical bills, small personal loans and judgments can be discharged. Some back taxes are eligible. Other debts such as child support and student loans generally are not discharged. See Secured vs. Unsecured Debts.
Does it matter how I got in debt?
People end up in bankruptcy for many reasons: job loss, health problems, divorce, maxed-out credit cards, etc. If your debts qualify, you qualify.
Can bankruptcy stop foreclosure?
Yes. A chapter 13 stops foreclosure and lets you pay the arrears over time. A Chapter 7 stalls foreclosure temporarily to buy time for a workout or short sale.
Can creditors still take me to court?
As soon as you file for bankruptcy, creditors must stop all collection efforts, including repossession, wage garnishment and utility shut-off. Bankruptcy also stops creditor harassment, including phone calls, letters and lawsuits.
Will bankruptcy ruin my credit rating?
Your credit score will take a hit at first, but in a short time your credit score will actually be better than it is now and you should qualify for new credit cards and loans within a few short years. See Bankruptcy and Your Credit.
Is bankruptcy public? Who will know I filed?
Bankruptcy Court proceedings and records are technically open to the public, but bankruptcies are not usually published, and the hearings are usually attended only by other people seeking debt relief. It is unlikely anyone but your creditors will know you filed for bankruptcy.
Southaven Bankruptcy FAQ Attorney
You probably have specific questions about your debts, your assets and your unique circumstances. I will address your concerns and explain the bankruptcy process and your alternatives so that you make informed decisions on your path to debt relief.
Contact me about bankruptcy today to schedule a free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
