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Answering Your Questions About Bankruptcy

Bankruptcy is a difficult path to consider. But, sometimes, people have little choice if they are drowning in debt or have lost their job. Our attorney at Cameron Law Firm LLC, in Slidell, Louisiana, is an experienced legal advocate who can answer your questions about bankruptcy.

More Than 20 Years Of Bankruptcy Experience

With more than 20 years of legal experience, attorney D. Bruce Cameron can guide you. He is devoted to his clients. An attentive and results-driven lawyer, Mr. Cameron knows that you have many concerns about bankruptcy.

This list of bankruptcy FAQs may help you understand the bankruptcy process better:

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

These are the two common types of personal bankruptcy. Chapter 7 is the preferred route taken by people with limited incomes and who are unable to pay back all or some of their debts. It’s referred to as the “liquidation bankruptcy” in which most of your property is sold and the proceeds used to pay off some of your debts.

In this situation, you may likely lose your home and your car. This type of bankruptcy stays on your credit report for 10 years. Meanwhile, Chapter 13 bankruptcy is all about reorganizing your debts. In this situation, your property is not sold. You can keep your property as long as you successfully complete a court-ordered repayment plan that may last three to five years. Chapter 13 also stays on your credit report for five years. 

How will bankruptcy affect my credit score?

Typically, people who file for bankruptcy already have a bad credit score. But when you file for bankruptcy, you may see your credit score improve. Credit bureaus will recognize that you are seeking financial stability. However, you must now take steps to rebuild your credit. These steps may include paying bills on time, regularly monitoring your credit and relearning spending habits.

Will I lose my house due to bankruptcy?

In many cases, you may keep your home. In Chapter 7 bankruptcy filings, the status of your mortgage payments is a major consideration. If you have maintained payments, you are more likely able to keep your home. But if you are behind, you will likely lose the home.

In Chapter 13 scenarios, you are working with a bankruptcy trustee on a repayment plan. This plan not only requires you to maintain court-mandated payments to the trustee, but also staying current with your mortgage payments. If you maintain timely payments throughout the plan, you will be out of bankruptcy and can keep the home. However, if you fall behind on the trustee or mortgage payments, you can lose your home.

Can I file bankruptcy more than once?

Debtors can declare bankruptcy more than once. But there are different time periods in which a person can do so for the most common forms of personal bankruptcy — Chapter 7 and Chapter 13. For the former, a person must wait eight years before filing another Chapter 7 bankruptcy.

In addition, someone who has filed Chapter 7 bankruptcy must wait four years if they choose to file a Chapter 13 reorganization bankruptcy. A person who previously filed a Chapter 13 bankruptcy and wants to file Chapter 7 has a six-year waiting period. Finally, for repeat Chapter 13 filers, they must wait two years.

Does it mean that I am a poor money manager if I file for bankruptcy?

Many people file bankruptcy after an extreme life event that turns their personal and financial lives upside down. Unexpected health problems leading to mounting medical bills can lead to a person filing for bankruptcy — so can a job loss or a divorce.

Call Me For Help

If you have more questions, Cameron Law Firm LLC, in Slidell, Louisiana, can answer your questions and help you determine whether filing for bankruptcy makes sense. For a consultation, contact our me or call 985-288-1732.