What You Need to List on Your Forms
To begin the process of filing for Chapter 7 bankruptcy, we must fill out a petition and several other forms that can be complicated and full of legal jargon. Having a bankruptcy attorney helps to decipher the details and move the process along.
When You Fill out The Necessary Forms, You May Be Required to Provide the Following Information:
- The extent of your current debts
- Your current income and living expenses
- Your property
- The property that you can keep through the bankruptcy process, like cars, clothing, furniture, etc.
- The property you owned and sold within the last two years
Common Bankruptcy Misconceptions
Though many Americans know they can file for bankruptcy if they’re out of options, most don’t understand what the consequences are, and as a result, there exist many misconceptions. It can be daunting to hear these myths but know that when you work with our legal team, we can give you the honest truth. Our law firm strives to both represent our clients while also educating them on their financial situations so the process is less intimidating.
Some Common Misconceptions We Come Across Include:
I’ll Lose Everything I Currently Own.
While Chapter 7 bankruptcies generally allow trustees to liquidate your assets and use the proceeds to pay creditors, you do have the option to claim certain exemptions on the assets you’d like to keep. Assets you can claim as exemptions can include bank accounts, tax refunds, cars, real property, household goods, and more. Even if you are a homeowner, there’s a good chance that you’ll be able to keep your home as long as you continue to pay your mortgage.
Since I’ve Already Filed for Bankruptcy, I Can’t Do It Again.
Individuals who have filed for bankruptcy before being allowed to do it again, though there are some restrictions. Between Chapter 7 bankruptcy filings you must wait eight years, and between a Chapter 13 and 7 filings, you must wait six years. Between a Chapter 7 and 13 filings, you must wait four years, and between Chapter 13 filings there’s a waiting period of two years.
My Bankruptcy Will Stay on My Credit Report for 7 Years.
Bankruptcy filings remain on individuals’ credit reports for 10 years, but this doesn’t mean that your financial life is over. There are a number of steps you can take to rebuild your credit while your filing is on your credit report.
I’ll Never Be Able to Get Credit – My Finances Are Ruined Forever.
Your credit score may suffer when you file for bankruptcy, but that doesn’t mean you have to stop trying to improve your financial life. You still have options. Two years after your discharge order is filed, you can apply for an FHA mortgage loan, and if you need a new car, you can apply for a loan right after your bankruptcy is completed. Our lawyers can also advise you on steps you can take to rebuild your credit, like through making continued payments on your existing mortgage. Many clients have reported being able to obtain credit cards immediately after a bankruptcy discharge.
Call our Troy, Michigan bankruptcy lawyers today and get started now on rebuilding your life. A better future is just a phone call away.