Note: This is not legal advice, but instead practical information that applies to the majority of cases. Please do not rely upon this information without a consultation with a qualified attorney. Prepared By Chris Rampley, Attorney at Law

Frequently Asked Questions

 

We hope to set your mind at ease about your need to consider bankruptcy. 

Please see our most frequently asked questions below.

 01  Can I get fired for filing bankruptcy?

It is against federal law to fire someone just because they file for bankruptcy.  Though being fired is a main worry of people considering bankruptcy, it is almost unheard of.

 02  Will I ever have good credit again?

Yes!  Getting credit again is much easier and happens much sooner than people think.

 

Here is a general timeline of credit after bankruptcy

1 month after bankruptcy - you can usually buy a car if you need one

1 year after bankruptcy - your credit scores should start increasing  

2 years after bankruptcy - If you are careful you can have a credit score over 700!

2 years after bankruptcy - If you have reestablished good credit you can buy a house!

7-10 years - The bankruptcy case is removed completely from your credit reports

 03  Is it moral to file for bankruptcy?.

Deciding to file bankruptcy can be a difficult and personal decision, but the need to be relieved from overwhelming debt has existed throughout history.  There is a significant historic, religious, and legal basis for filing bankruptcy.   

 

United States Constitution

Our founding fathers recognized the importance of bankruptcy in times of need.  In fact the right to file Bankruptcy is a Constitutional right given to us in the original United States Constitution. (Article 1, Section 8, Clause 4). 

Modern bankruptcy law is based on general Biblical principles. The Bible states:

"Every seven years we will let our fields rest, and we will cancel all debts." - Nehemiah 10:31b

(Note that is where Chapter "7" comes from!!!)

"Every seven years you must announce, "The LORD says loans do not need to be paid back." Then if you have loaned money to another Israelite, you can no longer ask for payment. - Deuteronomy 15:1-2

"At the end of every seventh year you must cancel your debts. This is how it must be done. Creditors must cancel the loans they have made to their fellow Israelites. They must not demand payment from their neighbors or relatives, for the LORD's time of release has arrived. - Deuteronomy 15:1-2

 04  Does something terrible have to happen to you to qualify?

No!

Here are common reasons to file bankruptcy;

Divorce

Job loss

Getting hurt

Foreclosure,

Garnishment,

Repossession

Just having "too many bills"

 05  What is court like?

 

Court is usually only a 5 minute interview by the Trustee.  They basically follow a list of questions that we will give you ahead of time.  The judge is not present.  Creditors rarely appear, and if they do they have only about a minute to ask you questions, and they must do so respectfully.

 06  How long do cases last?

Chapter 7 - About 4 months

Chapter 13 - 36-60 months

 07  Will I lose everything?

No!  

 

The law gives you protections for tens of thousands of dollars of different types property.  

Most people keep everything they own without question.