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Bankruptcy FAQs

Bankruptcy FAQs

Do you have Bankruptcy Questions?

We have compiled a list of questions we hear regularly from our clients regarding bankruptcy and have provided the answers below.

Bankruptcy is a court process utilized by individuals or businesses to either discharge or reorganize their debt.

Bankruptcy serves as a legal solution for overwhelming debt. It safeguards assets and homes from foreclosure, often being more cost-effective than debt negotiation or settlement.

Although bankruptcy is a credit report setback, credit recovery often surprises individuals due to its swiftness. While it influences credit decisions, bankruptcy doesn’t entirely bar future credit opportunities.

Yes indeed! A bankruptcy can halt foreclosure and eliminate secondary mortgages. Prompt action is crucial when facing foreclosure, and contacting Wright Family Law Group for a free consultation is advisable.

No, the moment you file for bankruptcy, creditor communication is legally halted, sparing you from harassing calls.

Chapter 7 bankruptcy remains on your credit report for a 10 years, while Chapter 13 is present for six years. However, a bankruptcy record doesn’t wholly deter acquiring new credit, we have found many of our clients have been able to secure car loans and credit cards within a few months.

Bankruptcy generally discharges most debts, with a few exceptions like taxes, child support, alimony, and student loans.

No, marriage allows flexibility – you can either file individually or jointly. Opting for joint filing offers benefits such as shared cost savings and household debt elimination.

In bankruptcy, it’s possible to retain your home, car, and other assets. Many individuals file for bankruptcy to shield these assets from creditors.

Yes, current wage garnishment ceases upon bankruptcy filing. If threatened with wage garnishment, bankruptcy prevents creditors from attaching wages.

Legal defenses like laches and statute of limitations may apply. Counterclaims against the plaintiff might also lead to damages. Bankruptcy is an option that halts or prevents lawsuits upon filing.


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