Do I have to pay my bills during the bankruptcy proceeding?
For the most part, the answer is no. For specific property (usually secured) such as your car loan or your houses mortgage that you plan on keeping you should probably continue to make payments. Also, for day to day expenses such as rent and utilities you should also continue to make payments. You should stop making payments on other old debts incurred prior to the bankruptcy such as credit card debts.
How long does a bankruptcy take?
For a typical chapter 7 case, the discharge of your debts usually takes approximately 3-4 months. A chapter 13 takes anywhere from 3-5 years.
How Do I know if it's Time for me to File?
If your creditors are attacking your assets and income and you are in debt way over your head, look into the "fresh start" filing bankruptcy may be able to provide you with. It seems the stigma attached to filing bankruptcy has greatly diminished over the last decade as a fast increasing percentage of the population file every year.
Is hiring a bankruptcy petition preparer to help me file my bankruptcy petition a smart move?
It depends on your case. However, the facts are that the vast majority of bankruptcy cases could have been successfully handled without an attorney. However, you must keep in mind that they cannot give you legal advice and charge anywhere from $150-250 just to type your petition. You are probably better off filling in the forms yourself using a step by step guide.
Will I lose my car and my house?
As long as you continue to keep up to date on your payments on the loan that secures the property, there should not be a problem keeping your house or car, even after the bankruptcy proceeding is concluded. If you want to play it safe contact your creditor to reaffirm the debt directly. This reaffirmation agreement must then be filed and approved by the court.
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