Frequenty Asked Questions About Bankruptcy
Filing for bankruptcy is an important and serious decision to make. Here are a few frequently asked questions when it comes to filing bankruptcy.
Will I stop getting harassed by creditors after I decide to file?
Handling the continuous onslaught of phone calls and voicemails from creditors can be stressful. Fortunately, bankruptcy gives you the ability to stop the creditor harassment. If you decide to move forward and file for bankruptcy, your filing will result in an automatic stay order. This order will make it illegal for creditors to call you anymore. They will no longer be allowed to collect on your debt. This is one of the benefits of filing.
What is a debt discharge in bankruptcy?
A debt discharge wipes out all your previous debts owed. When you file for Chapter 7 bankruptcy, assuming you are eligible to do so, you will get a debt discharge. This means that you will not have to pay off your previously owed debts. It is important to know that not everyone qualifies for Chapter 7 bankruptcy. The best way to understand if you qualify and to investigate your other options is to speak with a bankruptcy lawyer.
Does filing for bankruptcy ruin my credit?
Often times people that decide to file for bankruptcy have problems with their credit before filing. Bankruptcy can offer a great way to take back control over their personal finances. In fact, many times credit scores will improve over time once bankruptcy is declared.
Filing for bankruptcy will impact your credit report. The bankruptcy filing can stay on your credit report for up to 10 years, although sometimes less than this. While it\’s listed on your report, it can have a negative impact. Your situation will be unique though. Things such as your credit history, the type of bankruptcy you file for, your overall financial situation, and debts will play a role.
You may be considering bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Speaking with a bankruptcy lawyer MA can help you resolve your financial issues. If you are considering bankruptcy in Massachusetts we can help.