Unless you go through a bankruptcy case, you likely will have a lot of questions about how it works. If this is an option you are considering for relieving your financial debt load, here are some of the questions you may have about bankruptcy.
1. What Is the Difference Between Chapter 7 and 13?
Most people wonder what the difference is between Chapter 7 and Chapter 13, and this is a good question to start with. There are big differences between these two chapters of bankruptcy, but one key difference is the way each branch handles debts. Through Chapter 7, you do not repay qualifying debts. Through Chapter 13, you repay all your debts. While this is not the only difference, it is the most notable one to understand.
2. Which Branch Should You File?
The next question people often ask is which branch they should file. A lawyer cannot give you this answer without analyzing your financial state first. The branch you should use will depend on which one you qualify for and which one is most advantageous for your situation.
3. Will Filing for Bankruptcy Stop the Collections Calls?
You might also wonder if filing for bankruptcy will stop the collection calls you keep receiving. The answer is yes. Filing for bankruptcy will stop all collections from every creditor you have. Your creditors will not legally be allowed to contact you after you file for bankruptcy, no matter which branch you choose.
4. Can You Keep Your House and Car?
People who are considering bankruptcy also want to know if they can keep their homes and cars. If you file for Chapter 13, you will almost always be able to keep these things. If you file for Chapter 7, you might be able to, but it will depend on how much equity you have in them.
5. Can You File Alone If You Are Married?
The last question you might be wondering about is whether you can file for bankruptcy individually if you are married. Yes, you can file on your own if you choose to, even if you are married. You may experience benefits by taking this route, but you should consider the consequences of this, too.
These are five questions many people have about bankruptcy. You may have questions like this, too, and you can find the answers to these by meeting with a bankruptcy lawyer in your city. To learn more information about bankruptcy, reach out to a company such as Martinez Law Firm.