Second Start, PLLC
29200 Northwestern Highway, Ste 155
Southfield, MI 48034
1-800-SAVEDME (728-3363)
or
1-800-728-3363
We Can Answer Your Questions About The Bankruptcy Process.
At the Law Offices Of Attorney Jamie R. Ryke, we realize that you have plenty of questions about bankruptcy. The following are the most commonly asked questions, and our answers to those questions. If you do not find the answer to your question here, or if you wish to discuss your situation with our experienced Michigan bankruptcy lawyers, please contact us today.
1 - Will I be able to re-establish credit after I file bankruptcy?
2 - That reminds me - I've filed bankruptcy before. Can I file again?
3 - How do I stop my creditors from harassing me at work or calling me at home?
4 - What if I'm about to have my car repossessed, or my house foreclosed and taken back by the bank? In fact, I'm being sued by some law firm by my creditor. How do I stop all of this?
5 - Can I keep a credit card after I file a Chapter 7 Bankruptcy?
6 - Can I keep a credit card after I file a Chapter 13 Bankruptcy or can I discharge debt in a Chapter 13?
7 - How long will it stay on my Credit Report?
8 - If I Want To Schedule An Initial Consultation, Should I Bring Any Documents With Me?
9 - How Much Will It Cost For Me To File Bankruptcy?
10 - What Impact Will My Filing Bankruptcy Have Upon My Credit Report And Credit Score?
11 - Is there any thing I should not do if I am contemplating bankruptcy?
12 - Who deals with the creditors and bill collectors during the bankruptcy?
13 - What if I forget to list a creditor on my bankruptcy papers?
14 - Is it true that I can wipe out all my bills?
15 - What are the most common reasons for a Chapter 7 bankruptcy?
16 - Can I stop the bill collectors from calling?
17 - How long after I file will the creditors stop calling?
18 - I am married, does my spouse also have to file bankruptcy?
19 - Will I lose my job?
20 - Can I go to jail if I file bankruptcy?
1 - Will I be able to re-establish credit after I file bankruptcy?
Yes, to the surprise of many. You'll find that the credit card applications start arriving within 6 months. BE CAREFUL and only take on what you can afford. You will have a fresh start with your debt. Don't blow it, because you cannot file BK again for another 6 years
2 - That reminds me - I've filed bankruptcy before. Can I file again?
Yes, it just depends when. Chapter 7 bankruptcy requires you wait 6 years between filings. There are fewer restrictions on Chapter 13.
3 - How do I stop my creditors from harassing me at work or calling me at home?
The moment you file bankruptcy, all attempts to collect on debts must stop.
4 - What if I'm about to have my car repossessed, or my house foreclosed and taken back by the bank? In fact, I'm being sued by some law firm by my creditor. How do I stop all of this?
Once you file your bankruptcy papers, it all stops. Don't waste time. Contact a bankruptcy attorney who is also a Michigan bankruptcy lawyer right NOW.
5 - Can I keep a credit card after I file a Chapter 7 Bankruptcy ?
You may try to do what is called reaffirmation agreement - meaning that you ask the party if they will be willing to let you keep the card and obviously the debt that goes along with it but we certainly do not recommend it the purpose of filing is to get rid of your debt and start fresh with a new credit history. So you are way better of just getting rid of all of your debt.
6 - Can I keep a credit card after I file a Chapter 13 Bankruptcy or can I discharge debt in a Chapter 13?
You actually will be required to pay whatever debt that you can afford to pay in a Chapter 13 that means that you will be able to discharge some of your unsecured debt or none of your unsecured debt depending on how the plan works out. If you want to include the credit cards in your plan you will pay your debt back at a zero percent interest rate.
7 - How long will it stay on my Credit Report?
Let me ask you a question first. How long is anything on your credit report? The answer is for life unless you file a Chapter 7 Bankruptcy. So you understand the reason why this is an issue is because banks and credit card companies don't want you to file so they say that your credit will be ruined for the next 7 years after filing. The truth is that you will not be allowed to re-file for seven years but right after filing your credit score will improve and within a year your score will probably be over 600.
8 - If I Want To Schedule An Initial Consultation, Should I Bring Any Documents With Me?
At the initial consultation, we need to explore your financial situation, so if you are able to give general information about your financial situation without resorting to documents, then it won't be necessary for you to bring documents to the initial consultation. If you are not able to provide information about your financial situation without resorting to documents, or you ultimately decide that you wish to proceed with a bankruptcy filing, we are going to want to see the following documents:
Income:
1. Last year's federal and state income tax return, the year prior's federal and state income tax return, and the federal and state tax return of the year before that, including all attached W-2s, 1099s, and supporting schedules.
2. Paystubs for the past seven months.
3. If you operate your own business, whether a sole proprietorship or corporation, a profit and loss statement for the past six months.
Property:
4. Copy of most recent mortgage statements from any and all mortgage lenders.
5. Copy of most recent statements from auto lenders or lessors. If you have a coupon book and don't receive monthly statements, please go on line and print a status report of your account.
6. Copy of most recent real estate property tax bill.
7. Copy of most recent statements from timeshare companies.
8. Copy of most recent statement from mobilehome lender.
9. Copies of bank statements for all bank accounts that have been open in the past six months, whether open or closed today.
10. Copy of most recent statement from retirement plan administrators, including IRAs, 401(k)s, and pension plans.
11. Copy of binders or declaration pages reflecting current insurance coverages, including life, health, dental, automobile, property, and professional liability insurance.
12. Copy of the face page from any lawsuit complaints initiated by you against others that remains pending today or has been pending at any time within the past twelve months.
Liabilities:
13. Copy of most recent statements from creditors, including credit card statements, student loan statements, medical bills, delinquent tax notices from the Internal Revenue Service, California Franchise Tax Board, or State Board Of Equalization.
14. Copy of the face page from any lawsuit complaints initiated by others against you within the past twelve months, whether pending today or reduced to judgment, dismissed, settled, on appeal or otherwise.
Other:
15. Copy of all marital dissolution judgments, child or spousal support orders, and marital property division agreements to which you have been a party in the past four years.
16. Copy of valid driver's license or other form of picture identification, including state identification card.
17. Copy of your social security card.
Accordingly, if you are virtually certain even before your initial consultation that you will be proceeding with a bankruptcy filing, it wouldn't hurt to gather the above documents and bring them with you to the initial consultation.
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9 - How Much Will It Cost For Me To File Bankruptcy?
It depends on which chapter you file, the complexity of your case, and the number of creditors you have. Note that there is no difference in fees for both spouses to file together as it is for one spouse to file alone. The Law Offices Of Jamie Ryke Attorney is happy to provide you with a no-cost in-person initial consultation at which we will quote you a firm figure to represent you in your bankruptcy case.
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10 - What Impact Will My Filing Bankruptcy Have Upon My Credit Report And Credit Score?
A bankruptcy filing generally remains on your credit report for ten years following a Chapter 7 filing, and seven years following a Chapter 13 filing. A bankruptcy filing will of course negatively impact your credit score. Credit repair will not likely remove from your credit report public record defects such as bankruptcy filings, although credit repair can remove other derogatory credit defects, such as delinquencies and charge-offs.
11- Is there any thing I should not do if I am contemplating bankruptcy?
- There are several areas related to this question. You should consult your attorney. In particular there are three items worth mentioning.
- Under bankruptcy law, certain luxury purchases over $1000 within 60 days of the bankruptcy filing are presumed nondischargeable.
- Under bankruptcy law, cash advances agregating $1000 within 60 days of the bankruptcy filing are presumed nondischargeable.
- Debts involving materially false financial statements are nondischargeable under certain circumstances.
12 - Who deals with the creditors and bill collectors during the bankruptcy?
Your attorney deals with your creditors. It may be the only time you ever have the luxury of saying "you'll have to talk to my lawyer".
13 - What if I forget to list a creditor on my bankruptcy papers?
You are permitted to file an amendment to your schedules up to a certain time before discharge. If the amendment is timely filed then the omitted creditor is added to the bankruptcy. It is perjury to intentionally omit a creditor. However, if you do not know that a creditor exists and there are no assets for your creditors, the debt will be discharged.
This is a hassle after the fact, so be sure you be thorough and list everything.
14 - Is it true that I can wipe out all my bills?
The underlying policy of bankruptcy law is that the honest debtor who is in debt beyond his/her ability to repay the debt should be given a fresh start through the discharge of debts in a bankruptcy proceeding.
Not all debts are dischargeable. Generally speaking, the following debts will not be discharged: Taxes; Spousal and Child Support; Debts arising out of willful misconduct and or malicious misconduct by the debtor; liability for injury or death from driving while intoxicated; nondischargeable debts from a prior bankruptcy; Student loans; Criminal fines and penalties and Forfeitures.
Those debts which are secured will be discharged, however, expect the creditor to take the necessary legal steps to take back the property. In most cases if the debtor's equity interest in the property is exempt, the debtor may retain the property by redemption or reaffirmation.
15 - . What are the most common reasons for a Chapter 7 bankruptcy?
The most common reasons for consumer bankruptcy are: Unemployment; large medical expenses; seriously over extended credit; marital problems and other large unexpected expenses.
16 - Can I stop the bill collectors from calling?
One of the major benefits of filing for protection under Chapter 7 is that many creditor actions are stayed. This means that debt collection efforts and foreclosure is halted.
17 - How long after I file will the creditors stop calling?
Once a creditor or bill collector becomes aware that you have filed for bankruptcy protection, he/she must stop all efforts to collect the debt. After your bankruptcy is filed, the court mails a notice to all the creditors listed in your schedules. This usually takes a couple of weeks. If this is not soon enough, then you should have your representative inform the creditor immediately. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.
18 - I am married, does my spouse also have to file bankruptcy?
No. In some cases where only one spouse has debts, or one spouse has debts that are not dischargeable then it might be advisable to have only one spouse file. In cases where real property is involved the question regarding a joint bankruptcy is beyond the scope of this FAQ, see an attorney.
No. Bankruptcy laws prohibits discrimination based upon a debtor filing for protection under the bankruptcy laws.
20 - Can I go to jail if I file bankruptcy?
No. There are no debtor's prisons in the United States.
