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Credit and Debt Counseling_3, All the Questions You Want Answered Regarding Bankruptcy Custom Search Credit and debt counseling_3 will deal with questions you may have to ask the firm you have selected to work with. They basically deal with bankruptcy, questions on counseling, credit, debt collection practices and debt management plan. If there are more questions than this web page will be able to handle, we may have another article on the rest that will not be covered here. Bankruptcy If bankruptcy is my last resort, what happens when I file for one? Bankruptcy comes in two types: Chapter 13 and Chapter 7. With Chapter 13, you may keep a mortgaged house or a car. You don't surrender the property. Rather, you may pay off your debts. This will be from as short as three years to as long as five years. With Chapter 7 you will be required to surrender all the assets. It depends on the state where you reside. Some state have exemptions so you only surrender the assets that are not exempted in the state where you live. Usually the property that is exempted may be the basic furnishings for the house and tools related to work. Those two types of bankruptcy may do away with debts where creditors do not have definite rights to the property. Both bankruptcy can also stop repossessions, shut-off the utility, foreclosures, garnishments of wages and debt collection. Some student loans, child support, fines, alimony and taxes are not erased though. Is an attorney needed to file for bankruptcy? An attorney is not required to represent you but one can help you understand your rights and the implications of the bankruptcy especially changes have been made to bankruptcy law recently. Help and advice from an attorney who is experienced in this field is usually a worthwhile expenditure. What should I do if I need legal advice on bankruptcy and I do not have the money to hire an attorney? You can get in touch with legal aid services, the local bar association or a university law school. They may have a legal assistance program. What is the difference between a Chapter 13 bankruptcy and a DMP program? The DMP program is voluntary for the creditors and debtors. The creditors therefore may not waive the interest. But when you have paid off your debt, the legitimate credit and debt counseling_3 service will help you recover your credit through their credit recovery program. The Chapter 13 bankruptcy becomes a public record. The court will manage the plan. All interest will be stopped but you may have a hard time getting credit in the future. How long will the bankruptcy record remain in my credit report? What effect will this have on my credit? With the federal law called Fair Credit Reporting Act, a bankruptcy record can stay on the credit report for as long as ten years. It also won't erase a bad credit record. Can I lose my job when I file for bankruptcy? There is a Bankruptcy Code that usually forbids termination of employment or unfairness when it comes to employment just because a person has been in debt before filing or has filed for bankruptcy or has not paid a debt that has been discharged. After filing for bankruptcy, can I keep my credit cards? It really depends on the issuer of the card. Some may allow you to keep your card if you confirm debt payment to the issuer. You may also use a secured payment card which works like a debit card. There you go some of the questions on this issue answered. But that left us with no room for the other issues where there are questions as well. But we do have another time to address those questions. Meantime your questions on bankruptcy have been answered as part of the series on credit and debt counseling_3.
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