Frequently Asked Questions About Bankruptcy
Many people struggling with excessive debt and considering bankruptcy are curious about some of the same questions. Usually these questions involve things like eligibility requirements for bankruptcy, the types of debts that can be discharged through bankruptcy and the effects that bankruptcy will have on future credit.
Contact us. Our lawyers are available to answer your bankruptcy questions and help you make informed decisions. The Sobti Law Group attorneys are experienced professionals ready to help you. Call us in Orange, Beaumont, Palm Springs, San Bernardino or Corona, California.
Answers to Your Questions
- Will bankruptcy eliminate all of my debts, including student loans and tax debts?
Generally, no. Bankruptcy is only meant to discharge unsecured debts like credit cards and medical debts.
- What will happen to my retirement accounts like IRA and 401(k)?
Retirement investments are generally exempt from bankruptcy proceedings. Unfortunately, many people empty out their retirement and savings to eliminate debts before they contact a bankruptcy attorney, and then it is too late.
- Will I ever be able to get credit again after bankruptcy?
Yes. There is life after bankruptcy. We can help you formulate a realistic plan to repair your credit and rebuild your credit, though it will take some time.
- Will all my neighbors, friends and family know that I have filed for bankruptcy?
No they won't. Although it is possible for people to find bankruptcy information in the public records, it is very rare that people actually look for this information.
- If I am married, does my spouse have to file, as well?
The short answer is no, you do not need to file with your spouse for bankruptcy. However, there are a lot of nuanced factors involved with individual versus joint filing of bankruptcy. Talk to an experienced attorney before making a decision one way or the other.
- If I am in serious debt, is bankruptcy guaranteed to me?
No. If you have been given a Chapter 7 within the past 8 years or a Chapter 13 within the past seven years, you are not eligible for bankruptcy. Further, the bankruptcy court can dismiss your petition for bankruptcy. Also, your income may be too high in relation to your household expenses. You must qualify using the means test.
- Why would my petition for bankruptcy be dismissed?
If the bankruptcy court determines that you really are able to pay off your debts with your income, or if you do not comply with the requirements of the bankruptcy process, your petition could be dismissed.
- Will filing for bankruptcy make my creditors stop calling me?
In most circumstances, yes. You should know your rights regarding debt collectors and bankruptcy. Retaining legal counsel for the purposes of debt relief requires your debt collectors to route all inquiries through your attorney, and further, the law prohibits collectors from continuing collection activities until the bankruptcy proceedings are completed.
Contact Us
We offer a free initial consultation to people considering bankruptcy. An experienced bankruptcy lawyer from our staff can answer your questions and help you decide whether bankruptcy is the right option for your situation. Either call 888-627-8013 or contact us online to schedule your free initial consultation.
