Frequently Asked Questions

Which Type Of Bankruptcy Is Right For Me?

It depends because everyone’s scenario is unique. Your bankruptcy attorney will help you choose which option is best for your situation. This will be determined by your family income, expenses, and the number of people in your household, among other things. A bankruptcy lawyer should be able to analyze your position and advise you on which one is appropriate for you.

How Long Does Bankruptcy Stay On My Credit Report?

A chapter 7 bankruptcy filing is typically removed from your credit report after 10 years and a chapter 13 bankruptcy filing is removed after 7 years. However, just because a bankruptcy is on your credit report does not mean that you’ll have bad credit the entire time. Many people who file bankruptcy can improve their credit score to a good level in about 2-3 years.

Will Creditors Stop Harassing Me 24/7 After I File Bankruptcy?

Yes! Once you file for bankruptcy, an automatic stay prevents creditors from contacting you or attempting to collect on your debt.

Will Filing For Bankruptcy Stop My Wage Garnishment?

Yes! Your wage garnishment will be stopped the second we file your bankruptcy with the courts. Once you file for bankruptcy, an automatic stay prevents creditors from continuing with wage garnishments and law suits.

Which Bankruptcy Stops Foreclosure?

Foreclosure can be stopped with Chapter 7 or Chapter 13 Bankruptcy! Which type you file will depend on which one you qualify for and which type is best for your unique situation.

Can I Keep My House And Car If I File For Bankruptcy?

In most circumstances, you will not lose your home or automobile during your bankruptcy case as long as your equity in the property is completely exempt. Even if your property isn’t completely exempt, you can keep it if you pay off its non-exempt value via chapter 13.

However, some of your creditors may have a “security interest” in your house, automobile, or other personal property. This refers to the mortgage you took out on your home or other property that is pledged as collateral for the debt. Bankruptcy does not eliminate these security interests. If you don’t pay your obligations on time, the creditor has the right to seize and sell your house or belongings during or after bankruptcy proceedings.

Can I Rent A House Or An Apartment After I File For Bankruptcy?

While bankruptcy might prevent you from renting in certain locations, it does not mean that you will be unable to find a place to rent. Every landlord is different and many understand your situation and are willing to work with you. Many landlords will consider your bankruptcy but will not use it as the deciding factor for whether or not they will rent to you. However, it may be more difficult to rent at bigger apartment complexes since they usually have stricter requirements. Even if it’s more difficult to find a home or apartment to rent, you should still be able to find one.

Can I Buy A House After I File For Bankruptcy?

You must wait a certain period of time before you can apply for FHA Loans, Conventional Loans, and VA Loans.

FHA Loans require a 2 year waiting period for chapter 7 bankruptcy and 1 year waiting period for chapter 13 bankruptcy if they are discharged successfully. It’s quicker to qualify for a FHA loan with chapter 13 bankruptcy because you have shown goodwill to the debtor by paying your debt.

Conventional loans such as Fannie Mae, Freddie Mac, and other government programs have strict guidelines for giving out loans to people who filed bankruptcy. People who filed chapter 7 bankruptcy will be eligible 4 years from the discharge date. However, it can only be 2 years in certain situations. The chapter 13 bankruptcy waiting period is 2 years for conventional loans.

Veterans Administration (VA) loans are usually less strict than conventional loans. Veterans who filed chapter 7 bankruptcy will be eligible 2 years from the discharge date to apply for VA loans. However, they must explain why the bankruptcy happened and their plan to rebuild their credit. The chapter 13 bankruptcy waiting period is 1 year of payments that are made on time.

Can I Buy A Car After I File For Bankruptcy?

Yes you can. While a borrower with a recent bankruptcy may face some restrictions and pay a greater interest rate than an applicant with excellent credit, many lenders will work with post-bankruptcy customers. Lenders will consider a variety of factors, including your credit score, current income, and more when determining whether or not to finance you.

Does Spouse Have To File Bankruptcy With Me?

No, you and your spouse do not have to file together but you must list your spouses debts and assets in your bankruptcy petition. Listing your spouses debts and assets ensures that creditors will not be able to pursue any community property/assets shared between you and your spouse.

Will I Have To Go To Court?

Yes, you must appear at a Meeting of Creditors or a 341(a) hearing. Depending on the Chapter, this hearing is generally with the trustee or U.S. Trustee’s Office. It typically takes less than an hour to complete.

Can I Discharge My Child Support Arrearages?

No, child support and alimony are not dischargeable in bankruptcy. You must pay them back.

Can I Discharge My Student Loans?

Only in extreme hardship cases can student loans be
discharged. You can speak with the attorney to go over possible scenarios where this will be possible.

Can My Business Still Operate?

If you are self employed, you can still operate your
business while filing chapter 7 bankruptcy. If you are
incorporated, you may have to file as a chapter 11
bankruptcy. Set up an appointment with the attorney to
discuss your options if you are operating a business and want
to file.

Do You Have Any Questions? Schedule Your Free Consultation and Get Answers!

If you’re working with a bankruptcy lawyer, you’ll have access to an enormous amount of useful information that is relevant to your case. If you’re thinking of filing for bankruptcy in California, we strongly suggest you call The Law Offices of Edgar Lombera at 909-915-0181 or 760-835-9353 right now. We’ll start with a free bankruptcy consultation where we can look at your unique situation and offer advice on which options are best for you. Get started right away by calling us now.

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