People do not necessarily lose thier home when filing bankruptcy.

In many cases, a person can keep thier home. It depends on whether you can afford it and the amount of equity in your home. The Bankruptcy Code provides for a homestead exemption that protects the equity a debtor has in their home up to a certain amount. If the exemption amount is exceeded, a Chapter 7 Trustee may be able to sell the property for the benefit of the bankruptcy estate. In that type of situation, a Chapter 13 may be an option. Chapter 13 allows a debtor to catch-up on missed payments while reorganizing their other debts, over a 3 to 5 year period. 

There is “Credit” after Filing

In most cases, a person will be able to develop credit after filing bankruptcy. While a bankruptcy filing has a negative impact on your credit, it generally does not mean that you will never be able to obtain credit again. It may mean you will need a co-signer or may have to pay a higher interest rate. It is up to the lender to decide on the terms based on each person’s circumstances.

There is Safety from Harassing Phone Calls

The Bankruptcy Code requires creditors to immediately stop attempting to collect on debts once a bankruptcy case is filed. Creditors who are owed nondischargeable debts such as taxing authorities must also stop collection efforts while a bankruptcy case is pending but can start again after discharge is entered by the court.  The peace of mind that you get from the stopped calls can help you focus on resituating your life.

Filing for Bankruptcy with a lawyer can be Expensive

The cost of filing depends on which chapter applies to your case as well as the complexity of your case. Chimko & Associates is happy to provide you with a free initial consultation to assess your situation.  One of the biggest problems we have seen is with people that tried to file their own cases and didn’t understand the law.  Each case is different and you can get into a lot of trouble.  If things go wrong, it can be very expensive and you may wish you had hired a lawyer to start