5 Questions

Bankruptcy is a complicated matter. Declaring bankruptcy could be life-changing, entailing major lifestyle shifts and having to deal with many financial and social disadvantages. There are many questions to be answered before a consumer can make an informed decision. To get consumers on the right track, there are 5 questions most frequently asked when filing bankruptcy. Answers to these bankruptcy questions will determine the proper course of action.

“Will I still get harassed by creditors?” This is probably the first bankruptcy question that comes to mind when thinking of questions about bankruptcy. Creditor harassment is a primary factor that push non-money-wise consumers to go bankrupt instead of dealing with debts personally. They just don’t want any more aggravation coming from their lenders’ end. And the answer is no. Under bankruptcy law, consumers are protected from this kind of harassment. Actions towards debt collection must be ceased by creditors the moment the documents are filed. Creditors cannot file lawsuits or instigate other methods to demand payment, not even phone calls. All communication and transactions will be done through the bankruptcy court or trustee.

Moving on with the next of the 5 questions, “Will my bankruptcy affect my spouse?” No, spouses’ credit reports will stay the same unless they had something to do with any of the consumer’s debts. Transactions made by spouses on behalf of consumers without them knowing could happen, and such could have different implications. For clarity, it’s best to consult with a bankruptcy lawyer to have these bankruptcy questions answered. A lawyer could help with these 5 most popular questions. They could also shed light on bankruptcy law questions. Conveniently, websites could also provide bankruptcy questions with informative answers.

“Who will learn about me going bankrupt?” is the next question about bankruptcy. This expresses the most social concern of the 5 questions. In the US, even if Chapter 7 bankruptcies are public records, no one has the luxury of time to dig up the records just to know if any of their friends have filed bankruptcy. So, under normal circumstances, virtually no one will know that a consumer is bankrupt. Of course, bankruptcy stays on the credit report for 10 years, and concerned parties will find out.

“Will I ever get a credit line again?” Absolutely. Banks offer secured credit cards which could help consumers repair their damaged credit history. With as low as $200, a bankrupt consumer can get a secured line of credit. Regular reports to credit bureaus can be expected. The last of the 5 questions is “What are the costs involved?” Costs depend on the type of bankruptcy a consumer is filing. It is approximated at $200, plus attorney fees and other legal documents.