Top 10 Bankruptcy Questions

If you are considering filing for bankruptcy you will have many bankruptcy questions. On this page you can find answers to the top 10 bankruptcy FAQs. If you have more bankruptcy questions, contact an experienced bankruptcy lawyer.

1: Can I file bankruptcy without a lawyer?

Yes, it is possible to file bankruptcy without a lawyer, though we strongly advise against filing without an attorney. Filing bankruptcy is an extremely complicated matter and you risk the dismissal of your petition by the courts if you make a mistake.

2: Will I have to give up all my assets?

No, as stated in the Bankruptcy Code, a debtor filing for bankruptcy is allowed to keep certain assets by exempting property from the bankruptcy estate. These exemptions are designed to allow the debtor a fresh start.

3: If I file for bankruptcy, does my spouse have to file bankruptcy with me?

No, you can file for bankruptcy without your spouse. How your spouse will be affected depends on the amount of debts you have jointly and the communal property laws in your state.

4: Are there debts I can’t discharge?

Yes, depending on the bankruptcy chapter you are filing, the type and scope of debts you can discharge varies. In chapter 7 debts as a result of fraud or dishonesty, unfilled and priority taxes, alimony, criminal fines and student loans can’t be discharged. Chapter 13 is different in that you can discharge certain debts to a former spouse that are non-support debts, as well as government fines.

5: Will My Creditors Stop Harassing Me?

Yes, they have to. The automatic stay rules that once bankruptcy has been filed, creditors must cease all collection action against a debtor. This includes lawsuits, wage garnishing and harassing phone calls.

6: Will the IRS be affected by my bankruptcy filing?

Yes, just like all other creditors, the IRS must stop all collection actions after you have filed bankruptcy. You and your property are protected by the automatic stay. The bankruptcy proceedings will determine whether the tax claim will survive the proceedings.

7: Will I lose my retirement savings?

No, usually you are allowed to keep your retirement savings because they are not yet property of your estate, or because you can claim them exempt due to the 2005 amendments to the Bankruptcy Code.

8: If I have filed for bankruptcy before, does this prevent me from filing?

This depends on a number of things; which chapter you filed before, and which chapter you need to file now, whether you received a discharge in the previous case, and how long ago this was. Contact your bankruptcy attorney to determine what your options are.

9: Who Will Know?

Because bankruptcy filings are public records, in theory everybody can know. Under normal circumstances nobody will know you filed for bankruptcy. However, your bankruptcy will remain visible on your credit report for 10 years.

10: Can I get credit after bankruptcy?

Yes, it is possible to get credit after bankruptcy, though initially it will be expensive and limited. It will take careful financial management to rebuild your credit, so make sure you remain current on all your payments and do not build up more debt.