| ::General Bankruptcy FAQs |
- Will I be able to rent an apartment or house after I file for bankruptcy?
A landlord can legally refuse to rent you an apartment because of a prior bankruptcy in your credit report. However, if you are presently renting a home or an apartment, your present landlord will typically renew your lease without running an updated credit report, and will probably not know that you filed a bankruptcy. If you are applying for a new lease, you may encounter some difficulties that can be overcome. Offering to make a larger security deposit may be enough for a potential landlord to overcome his/her concerns.
- How do I know if I should file for bankruptcy?
There are many situations where bankruptcy may be best option available to save your assets or prevent you from being in debt for many years. A few of the more common situations where bankruptcy is a serious option are listed below. Of course, each person and his or her specific situation is unique. You should consult with an attorney at Vanden Bos & Chapman, LLP to discuss all of your options and alternatives.
a. Will bankruptcy stop a lawsuit against me?
If you are being sued, we strongly urge you to speak with an attorney at Vanden Bos & Chapman, LLP about filing a bankruptcy. In most cases, a bankruptcy filing will stop a lawsuit immediately and prevent your creditors from placing a lien against your house or garnishing your wages.
b. Will bankruptcy stop my home from being foreclosed and/or my car from being repossessed?
Bankruptcy can stay a foreclosure of your house or a repossession of your car. In most cases, an "automatic stay" arises by law the instant a bankruptcy is filed. The "automatic stay" stops the foreclosure process and prevents any collection actions such as repossessions or garnishments. Bankruptcy may also allow you to consolidate your mortgage arrears or automobile balance and make payments on those debts over time through a repayment plan designed by Vanden Bos & Chapman, LLP with your help.
c. I can only afford the minimum monthly payment on my credit cards and my balance keeps increasing. Can bankruptcy help me?
If you are only paying the minimum required payment on your credit card bills each month (generally about two percent of the outstanding balance), and the interest rate is 20%, it will take you 15 - 20 years to pay off a $10,000 debt. Do you really want to be in this same financial situation in 20 years? Filing a bankruptcy with us will discharge these debts and allow you to get a 'fresh start' and get on with living your life.
- How do I rebuild my credit after filing for bankruptcy?
Although bankruptcy may be legally reported on your credit report for up to 10 years, you can begin to reestablish your credit immediately after your bankruptcy discharge.
Lenders will consider many factors while determining whether to extend credit to you, but the most important of all factors that they will consider is your debt-to-income ratio. Based on the credit scoring models currently used by the credit reporting agencies, a debtor's credit score often actually improves upon the filing of a bankruptcy because of the elimination of debt.
Vanden Bos & Chapman, LLP will show you how to rebuild your credit and use that credit responsibly.
- My creditors will not stop calling me regarding my past due bills. How can I make them stop?
As soon as you retain (hire) Vanden Bos & Chapman, LLP as your attorneys, you can refer all of your creditor calls to our office, and we can deal with them. They have to stop calling you if you have an attorney. This will happen even before you file for bankruptcy.
- Who will know about my bankruptcy?
Parties that receive notice of the bankruptcy are your creditors, the Bankruptcy Court, the IRS and the Oregon Department of Revenue. The bankruptcy is a public record, so anyone who wants to try to find out about your bankruptcy could find out about it. Many people believe that notices of all bankruptcies are printed in the newspapers, but that is not true.
- Will my employer be notified about my bankruptcy?
Your employer generally will not be notified of the bankruptcy unless your employer is also a creditor, or unless there is a garnishment in place and your attorney needs to notify the employer that you filed bankruptcy so that the garnishment is canceled. The Bankruptcy Court will not contact your employer nor will your attorney. An employer is prohibited from discriminating against an employee on the basis that the employee has filed for bankruptcy. Vanden Bos & Chapman, LLP will ensure that all of your rights are protected, and that your dignity and privacy are not sacrificed. Do not tell your employer that you are about to file bankruptcy because the employer can discriminate against you (or even fire you) on the basis that you intend to file bankruptcy, even though the employer cannot discriminate once you have already filed bankruptcy.
- I only want to file bankruptcy on certain creditors, but not on others. Is this possible?
No. You are required by law to list all of your creditors, including friends and family members who have loaned you money. Intentional failure to list a debt is a serious matter and could result in a denial of your entire bankruptcy discharge and even criminal prosecution. However, you are not prohibited from voluntarily paying selected debts after you file for bankruptcy. Vanden Bos & Chapman, LLP can explain how you can legally repay any debt you want, after your bankruptcy is over, on a purely voluntary basis without a reaffirmation agreement.
- Do I have to go to court?
You must attend a first meeting of creditors. Your attorney will be with you at this meeting. This meeting is held in a hearing room used by the bankruptcy trustees (not in the court). The trustee will ask you questions regarding your bankruptcy filing. If any of your creditors are present, they can also ask you questions. However, creditors rarely attend this hearing, and, if they do, they rarely ask questions. Your attendance at this hearing is mandatory and failure to appear can result in dismissal of your case.
We understand that the first meeting of creditors can be very stressful for the debtors. Clients of Vanden Bos & Chapman, LLP can listen to audio recordings of actual meetings of creditors in our "Client Center" on this website before you attend your own hearing. This feature is one of several features that are available exclusively for our clients only on our website. We have actual hearings conducted by the actual trustees so you will be able to listen to a hearing conducted by the trustee assigned to your case before you attend your own hearing. The availability of these extra resources and features is one of many reasons why you should choose Vanden Bos & Chapman, LLP as your attorney if you are considering filing bankruptcy. Once debtors have heard the audio recordings of other creditor meetings, we believe it helps to reduce their concerns about their own hearing.
- Are there alternatives to bankruptcy?
Alternatives to filing bankruptcy include private debt consolidation services and settlements with your creditors. Private debt consolidation services try to work with your creditors to try to get you a better interest rate or a lower monthly payment. Sometimes, you can negotiate with your creditors to settle your bill for less than you owe. However, only bankruptcy gives you the power to prohibit creditors from attaching or foreclosing your property. Chapter 13 gives you the power to force unsecured creditors to accept a Chapter 13 Plan that will discharge the unpaid portion of the debts. These powers are not available to private debt consolidation services or in settlements.
- What happens to co-signers of debt in my bankruptcy?
A Chapter 7 bankruptcy releases you from your debts, but it does not release your cosigners. Creditors will demand payment from the cosigners if you don't pay. You can protect the cosigners by continuing to pay the debt after your discharge (even though you are not obligated to), or you can file a Chapter 13. In certain circumstances, a Chapter 13 can prevent a creditor from collecting from the co-debtor while you repay the debt through the Chapter 13 plan..
- Will bankruptcy stop my home from being foreclosed and/or my car from being repossessed?
In most cases bankruptcy can stay a foreclosure of your house or a repossession of your car. An "automatic stay" arises by law the instant a bankruptcy is filed. The "automatic stay" stops the foreclosure process and prevents any collection actions such as repossessions or garnishments. Bankruptcy may also allow you to consolidate your mortgage arrears or automobile balance and make payments on those debts over time through a repayment plan. However, under the new law, there are now serveral exceptions to the automatic stay, and it is possible that filing will not stop the foreclosure. Because the automatic stay is now no longer always "automatic," it is more important than ever to see a lawyer well in advance of a foreclosure sale date so the lawyer will have the best opportunity to determine if a stay of the sale can be accomplished. Even if the stay is not automatic, under certain circumstances, it is possible to ask the Bankruptcy Court to impose a stay of the foreclosure sale, but the lawyer will need as much time as possible in advance of a foreclosure sale to file such a motion to obtain a stay. Every case is different and Vanden Bos & Chapman, LLP will be able to provide advice about your specific situation before you file.
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