Debts are almost always a part of our lives. You can probably not name a person who has no debt or has not gone through life without incurring debt. Debt just like co-exists with us in our lifetime.
As you cannot get away with it at some point because of troubling times, you take advantage of giving in to it because of the need to. In your aim to ease yourself out of your financial struggles, you realize in the end that you have sustained debts way above your capability to repay them. And this poses a big problem.
Pushing yourself to get out of debt, you might be thinking of filing for bankruptcy. After all, bankruptcy gives you the promise to start fresh and continue to live your life as you used to before. But then again, there go some of the questions that run in your mind about things you are unsure of in filing for bankruptcy.
What Are Your Qualms In Filing for Bankruptcy?
Here are some probable questions in your mind that may hinder you from making the choice of filing for bankruptcy:
● Will everyone know that I filed for bankruptcy?
If you opt to file for bankruptcy, the people that will know about it will be your creditors, your attorney (if you get one to work on your case), and the circle of people you decide to tell.
Bankruptcy records are public but you have to remember that a lot of people like you in debt also filed for one. Unless someone is tracking and digging some information on you, it is still less likely that your filing for bankruptcy will go public. Well, if you are a celebrity or a known person, then that will be a different story.
● Will I lose everything when I file for bankruptcy?
Like any other state, filing for bankruptcy in Nevada does not wipe you out of everything. There are exemptions you can use to protect your property such as your car, home, wages, retirement plans, the cash value in your insurance, and home furnishings and goods.
There is also a “wildcard exemption”. You can exempt up to $10,000 of any property of your choice that is not covered by the exemption.
● Will I be entitled to get credit again?
Bankruptcy will not hinder your future credits but you have to understand that bankruptcy filing might have affected your credit score that you need to rebuild for creditors to trust you again.
Like in the case of obtaining credit cards after bankruptcy. It will take time for you to get offers for credit card applications but soon will get one. This time, however, you have to be wise in choosing a credit card that does not only suit your needs but should also somehow help you manage your spending. This way, you will not be tempted to spend more than you earn and avoid another bankruptcy.
● Will I have to file for bankruptcy with my spouse since I am married?
Depending on your debt status, and decision as husband and wife, you may file for bankruptcy jointly or separately. The law does not require you to file jointly if you are married.
What makes Nevada unique from other states, is that it is a community property state. This means that Nevada law considers all marital assets to be owned equally by the spouses. The nonfiling spouse’s credit standing may be affected by the filing spouse’s credit rating.
● Will I still be able to own anything after bankruptcy?
Of course! Filing for bankruptcy does not mean the end of your purchasing power.
As bankruptcy would have helped you in your financial obligations to your creditors, have given you a fresh start, you can definitely buy and own anything that you can within your means.
● Will I find it hard to file for bankruptcy?
You may find it hard to file for bankruptcy when you do it on your own especially if you do no have the time to spare or the patience to understand how the process will go. But with a trusted bankruptcy attorney working with you on your papers, giving you sound and legal advice, and filing for you, filing is quite easy.
The decision on whether to file for bankruptcy or not poses to be more difficult than the actual filing itself. This is the time of weighing between your reality and what would have been ideal.
Consulting with a knowledgeable bankruptcy attorney will be in your best interest at this point.
● Will filing for bankruptcy hurt my credit?
Think about it. How can filing for bankruptcy hurt your credit when you have opted for it because you are already financially broke?
Bankruptcy gives you a fresh start. Once you are done and over with it, you are in a more likely situation to be open and handle new credit – should someone offer you. In reality, bankruptcy is a chance for you to rebuild your credit.
● Will filing for bankruptcy cause family issues or marital problems?
More often, it is quite the opposite. Faced with financial issues, as well as feeling harassed by your creditors, stress will get in the way. Stress can strain your relationship with your family and your spouse leading to your family being torn apart, or getting separated or divorced from your spouse.
Bankruptcy relieves you of the stress somehow, easing your worries and letting you focus on what is at hand – your family and your spouse. Being stress-free you can enjoy life and the benefits of bankruptcy.
● Will I get to choose my property and debts to be listed in bankruptcy?
No. Once you file for bankruptcy, you have to list all your property and debts. If you intend to leave out some debts or property, you are violating the law.
Going against the law is not a good start. This might give grounds for your bankruptcy filing to be denied. If you want to get the most of what bankruptcy can offer, you have to declare what needs to be on the list.
● Will I be entitled to file for bankruptcy only once?
Depending on the bankruptcy chapter that you will file, you are entitled to file more than once.
But it will be a good aim to avoid filing for bankruptcy again, and be financially wise when it comes to your expenses.
You can file for a Chapter 7 bankruptcy every 8 eight years. In the case of Chapter 13, you must wait for 2 years from the date of the previous filing for you to be able to file again.
● Will my creditors continue to harass me if I file for bankruptcy?
Again, your goal in filing for bankruptcy is to ease your stress and worries, aside from stopping your creditors from ending you messages or calling you multiple times in a day about the payment of your debts.
The moment you file, the Bankruptcy Court issues an order that will creditors to stop contacting you. This is what you call the “automatic stay”. The automatic stay order is powerful in that it immediately stops creditors from calling you, and sending you collection letters or messages.
You can even sue your creditor that violates this rule and be compensated for it.
Freedom Law is Here to Help
It is normal for you to have tons of questions about bankruptcy filing. These questions deserve answers from a knowledgeable bankruptcy attorney.
Freedom Law is ready to help. Please request a call-back by submitting a short online form. All initial consultations are free and confidential