California Lawyers Providing Answers to Your Questions About Bankruptcy and Rebuilding Your Credit
If you are considering bankruptcy as an option for debt relief, you most likely have many questions about how bankruptcy will impact your specific situation and what you may be able to do to rebuild your credit as quickly as possible.
At The Epstein Group, we recognize you are facing difficult decisions and need sound legal advice to make an informed choice. Although every debtor faces different circumstances, we have provided basic bankruptcy FAQs to address some of your immediate concerns. For an in-depth review of the particulars of your case, contact our San Francisco area offices to arrange a no-cost, no-obligation consultation with an experienced bankruptcy attorney.
Bankruptcy FAQs
What Is Bankruptcy?
Bankruptcy is a legal process that allows individual or business debtors who owe creditors more money than they are able to pay to either work out a repayment plan or eliminate a majority of the debt they owe.
What Do I Need to Start the Bankruptcy Process?
To start the bankruptcy process, you will need to compile a list of past and present debts and a list of your assets and liabilities. You will also need to provide financial statements and a filing fee to the court.
Which Kind of Bankruptcy Can I File?
Individuals and families typically file for Chapter 7 bankruptcy, which discharges a majority of debts, or Chapter 13 bankruptcy, which involves a repayment plan to reimburse creditors. Small business owners may be able to choose either Chapter 7 or Chapter 11 bankruptcy. The type of bankruptcy you may be eligible to file depends on your specific circumstances and whether or not you have assets available to repay your debt. A bankruptcy attorney can guide you toward the best option for your situation.
Are There Debts That Cannot Be Discharged?
Yes. Although many types of debts, such as credit card bills and medical bills, can be eliminated through bankruptcy, there are certain debts that are not dischargeable. These debts can include:
- Tax debt
- Debts for alimony/spousal support and child support
- Legal judgments based upon fraud or willful and malicious conduct
- Student loans (dischargeable only in cases of extreme hardship)
- Debt incurred after filing for bankruptcy
If I File for Bankruptcy Will I Lose All of My Possessions?
Each type of bankruptcy includes certain exempt kinds of property. In most cases, you will be allowed to keep items, such as:
- Vehicles up to a certain value
- Tools or equipment necessary for your job
- Home equity up to a certain amount
- Jewelry
Repairing Your Credit After Bankruptcy
Most people who find themselves needing to file for bankruptcy have already done significant damage to their credit report. Although a bankruptcy can stay on your credit report for seven (chapter 7) to 10 years (chapters 7 and 11), you can begin working on rebuilding your credit immediately, but be aware that improving your credit score takes both time and patience.
If you are granted credit following bankruptcy, it may be a wise choice to use your credit carefully by charging an amount and paying it off each month. This pattern will help you to make positive steps toward raising your credit score.
Free Attorney Consultation
To talk to a lawyer at The Epstein Group about your options for debt relief, call 415-863-5718 or complete the contact form on this website. There is no charge for your initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
