| Question | Date |
|---|---|
| Will filing bankruptcy damage my credit?Yes, but if you are filing bankruptcy, your credit is already damaged. Bankruptcy can be a way to clean up your credit and allow you to start rebuilding your credit. | 24 Apr, 2010 |
| How do I rebuild my credit? The most common way is to get 2 to 3 credit cards, which is easier than you might think. Use them every month. Charge up to about 50% of your credit limit. Pay them every month. Call the card company every 6 months or so and request a credit limit increase. Once you have the 2 or 3 cards, do not apply for more cards. Try to get only VISA or Mastercard cards from major banks. Avoid department store cards, and do not agree to apply for one while shopping. | 24 Apr, 2010 |
| How long does it take to file bankruptcy?Bankruptcies are filed online, so they can be filed 24/7. Once you have credit counseling done, the actual filing of a case can be done in a matter of minutes. I have clients call needing an emergency filing who do the credit counseling on their cell phones as they drive to the office. Once they arrive we can often have the case filed within 10 or 15 minutes depending on how many creditors they have. | 24 Apr, 2010 |
| When will my bankruptcy be approved?There is no formal approval process. When the bankruptcy is properly filed, it is accepted for filing automatically. In chapter 13, the court approves the plan about 2 months after filing, and you get your discharge at the end of the case, which is a maximum of 5 years after filing. In chapter 7 you get your discharge in about 3 months after filing. | 24 Apr, 2010 |
| Do I have to go to court or When do I go to court or see the judge? Normally you do not go to court or see the judge. You do go to a creditors meeting that is managed by the trustee. Most debtors, in spite of being told repeatedly that this is not court and the trustee is not the judge, will later say that they went to court and saw the judge when they went to their creditor meeting. | 24 Apr, 2010 |
| How much will it cost?The cost varies. * Chapter 13 cases normally cost $3200 plus filing fees in Austin * The retainer is normally around $1,000 for these case. The retainer is the part of this that is paid up front to the lawyer. Filing fees are currently $274. * Chapter 7 cases normally cost $1500 to $2500 plus filing fees. This entire fee normally has to be paid before filing. Filing fees are currently $299. * Chapter 11 cases normally will require a retainer of $5,000 to $10,000 or more. The filing fees are substantially higher as well. | 24 Apr, 2010 |
| Will I be able to buy a house after?Yes. In the current economy it is hard to say what this looks like. It used to be that you could buy a house with little or no money down about 4 years after filing. Now it will probably require money down at the minimum. | 24 Apr, 2010 |
| Will filing bankruptcy damage my credit?Yes, but if you are filing bankruptcy, your credit is already damaged. Bankruptcy can be a way to clean up your credit and allow you to start rebuilding your credit. | 28 May, 2010 |
