Questions You Might Have Regarding Bankruptcy

Being faced with bankruptcy is probably going to come with a lot of questions. You might first wonder how you got to this point, but then you’ll have all the technical questions regarding the process of bankruptcy itself. The following are some you could need to have answered right away by a Charlottesville, VA Chapter 7 bankruptcy lawyer such as one from MartinWren, P.C.

What Is Bankruptcy?

Bankruptcy is a legal way for you to eliminate many types of debt that you are unable to pay back in full. This could include credit card debt, medical bills, unpaid utility bills and other similar expenses. 

Who Can File Bankruptcy?

Almost anyone who is having a hard time paying debt can file bankruptcy. Most of the time, you will have to take a course in credit counseling before you can file. There are also time constraints in some situations, but there aren’t too many other restrictions. If you are in debt and are worried about getting it paid, you might speak with a lawyer to determine if your situation would qualify for bankruptcy.

What Types of Bankruptcy Are There?

There are several types of bankruptcy, though two are most common. Chapter 7 and Chapter 13 are the two types you’ll hear most about, and you’re most likely going to file one of these two. In Chapter 7 bankruptcy, the entire process goes fairly quickly and your debts are eliminated for good. In Chapter 13 bankruptcy, the process could last up to a few years, but you are given an opportunity to pay down some of the debts yourself. Each type comes with different benefits, so you’d want to speak with a lawyer to determine which type is best for your situation. 

Can You Keep Credit Cards If You File Bankruptcy?

If you’re looking at bankruptcy, it’s probably not a good idea to keep using your credit card, though some companies will allow it. Some credit card companies offer the option for you to reaffirm the balance on your card and begin a new agreement. If you decide to take this route, your debt won’t be discharged, so this should always be a last resort. 

If your credit card has a balance of zero when you file bankruptcy, it doesn’t actually have to be listed with your debts. This means you could keep it without reaffirming or entering into a new agreement. In many cases, the credit card company finds out about your filing anyway, and they could raise your interest rates.

Enlisting Your Attorney for More Answers

Bankruptcy can be a lengthy process that comes with a lot of questions. To get your questions answered, enlist a legal professional and contact a bankruptcy attorney today.