Can I Get Out Of A Reaffirmation Agreement After It Has Been Signed?

When you file bankruptcy one of the things you have to decide on is what things you will keep and continue to pay, and what things you will give back to the lender. Lenders prefer it if you keep their collateral and continue to pay them for it during your bankruptcy. One incentive commonly offered in order to convince debtors to keep making payments is to offer a lower interest rate, but only if the debtor agrees to sign a new agreement to make the payments. This is done through agreeing to reaffirm the debt, and signing a reaffirmation agreement. A reaffirmation agreement is like a new contract, so even after your bankruptcy is over the debt is due and the creditor can call you to collect if you miss a payment.

So while reaffirming a debt can benefit you, like in the case of getting a lower rate and thus a lower payment, it can also have serious consequences. Because the debt remains due after your case is over, it is important to carefully consider your options before agreeing to sign a reaffirmation agreement. However, if you do agree to reaffirm a debt and then change your mind later, you are able to ask that the Court rescind the agreement. This has to be done timely, and with the help of a knowledgeable bankruptcy attorney you can rest easy knowing the deadline will not be missed. But, you do have to take action on your part to put these wheels in motion, including doing the following:

•         Immediately telling your attorney you want to rescind the agreement, as soon as you make the decision that you want to get out of the reaffirmation you have signed.

•         Provide your attorney with your budget, showing why your finances do not permit you to make the payments under the reaffirmation agreement.

•         Ask that your attorney communicate your intent to rescind the agreement to the creditor in question, so you are not contacted by that lender while the request to rescind the agreement is pending before the Court.

If you have questions about what debt to reaffirm and what debt is tied to collateral that you can live without by surrendering to the lender during your case, call our office. We will help you to make choices that meet your needs, and that will benefit you in the long run. We put our focus on helping distressed debtors find solutions to their financial problems and look forward to working with you.

For more information about reaffirmation agreements, call us today or reach us online at www.law-ri.com. We will help by looking at the facts of your case and giving you options to reach your financial goals.

Why Should I File Bankruptcy?

If you are experiencing financial difficulties you might be wondering what options you have to handle your debt. Many consumers turn to debt consolidation or debt counseling as a way to get a handle on their money, but that does not always work. For most debtors the best answer is to file bankruptcy and start fresh with little to no debt owed. In years past the idea of filing bankruptcy was thought of as taboo, but in today’s economy it is a vehicle used by thousands of people a year to get relief from overwhelming debt. Even celebrities and superstars have sought the help of the bankruptcy courts when money is tight, or for other legitimate business restructuring purposes. Whatever caused your current financial situation, please know that you are not alone and that there is help available.

Filing bankruptcy might sound a little scary, but here are just a few of the benefits you will receive when your case is filed:

•         Collection calls have to immediately stop.

•         Pending lawsuits to repossess your car or to foreclose on your house have to immediately stop.

•         If your wages are being garnished, the judgment creditor is required to release the garnishment and your employer will no longer hold out money from your paycheck.

•         You can eliminate certain debts all together, freeing up money each month to start a savings fund with or to put towards other obligations.

•         Some debts can be reduced to pennies on the dollar, which saves you money in the long run because you no longer have to pay the entire amount that is due.

•         The interest rate for certain loans can be reduced, which saves you money by reducing the amount of payment that goes to interest each month.

If these things sound like things that could help your money situation in both the short and long term, then bankruptcy might be right for you. Our office can help by going over your finances with you and letting you know how bankruptcy will help. We will review your current income and debt situation and offer solutions that make sense for you. Call us today to find out more, and to start the process that will put you on the path to financial recovery.

For more information about how bankruptcy can help you, call us today or reach us online at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations for more convenient one on one office visits.

 

How Bankruptcy Can Give Debtors A Fresh Financial Start

If you are not bringing in enough money to pay all of your bills each month you might be wishing for the chance to have a “do over”. Bankruptcy is just this opportunity, and with careful planning you can put yourself on the road to financial recovery and eventually end up in a better financial spot. If this sounds like something that you need to explore, considering the benefits of bankruptcy may help you to make a decision about what is best for you.

Bankruptcy is designed to give financial relief to the honest, but unfortunate debtor. This means that if you have accumulated more debt than you can service, you should look at how bankruptcy will help you start over. Here are a few ways bankruptcy will give you a fresh financial start:

•         Unsecured debt, such as high interest rate credit cards with balances that never seem to go down no matter how many monthly payments you make, can be either eliminated or significantly reduced.

•         Some secured debts, like car loans, can be reduced so that all you are responsible for paying is the value of the collateral rather than the inflated balance due.

•         Lenders are required to leave you alone when you file a bankruptcy case, and cease all collection efforts including garnishments and lawsuits. This means your paycheck could increase when money is no longer held out to pay creditors that have sued you and obtained a judgment. With extra money in your pocket you are able to focus on paying the things you need to survive, like house and car payments and even your grocery or utility bill.

Every now and then every one of us can get underwater with our budget. Finding ways to come up for air is hard, but with bankruptcy you are given a real shot. The prohibition against creditors contacting you the minute you file a case gives you the chance to catch your breath and figure out a budget that works. When you no longer have to pay some of your debt, or are allowed to pay a reduced amount, you wind up with more money each month and can allocate that money to things you need. If you are having a hard time paying all of your bills each month, call us to find out how you can start over with your finances and get back on track.

For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Am I Allowed To File Bankruptcy More Than Once?

S

ome things in life are not single occurrences, but happen more than once. To prove this point all you have to do is take a look around at how many families have multiple children, or look at your own past to see how many jobs you have had over recent years. Some of the things that come back around are welcome, while others are less desirable. One of the least desirable repeat occurrences a person can deal with is that of falling behind on payments and suffering financial losses. But, in today’s economy it is not uncommon to be laid off from job after job, or to make less now than what you were making a few years ago. If this is your situation, it might be that the first time around you were able to start over by filing bankruptcy, and you could be wondering if that is an option again. There are restrictions on how often you can file bankruptcy, but it is something that does happen.

Filing bankruptcy more than once is permitted as follows:

•         If you have received a Chapter 7 discharge, you cannot receive another Chapter 7 discharge for 8 years. This does not mean you cannot refile a Chapter 7, but the benefit of filing is the discharge so if you just got a discharge it is not helpful to file again right away.

•         If you have received a Chapter 13 discharge, you cannot receive another Chapter 13 discharge for 2 years. Again, the timing is important here because the goal of filing bankruptcy is to discharge your debt, and if discharge is not permitted for several years you might want to consider other alternatives.

There are also rules about filing a different chapter case after having received a discharge, and those rules are complex. In order to figure out if you can file a Chapter 7 after having received a Chapter 13 discharge, things like whether the unsecured creditors received full payment in your Chapter 13 and whether your cases are filed in good faith are considered. The rules can get tricky, and several technicalities could arise. In order to learn whether you can refile, it is best to seek the advice of a knowledgeable bankruptcy attorney. Our office can look at the facts of your case, and let you know your options.

If you have more questions about bankruptcy and how often you can file, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Is My Retirement Safe In Bankruptcy?

A large part of the population belongs to a generation referred to as the “baby boomers”. This group of Americans is those people born during World War II, and they are now reaching retirement age. Unfortunately many of the baby boomers are also facing financial hardship, and are looking for ways to make the most out of what money they’ve been able to put aside for retirement. In some instances the answer is bankruptcy, but this decision comes with a lot of questions. One of the most important questions for this age group, as well as people of all ages, is how retirement is treated in bankruptcy.

Because a retirement fund is considered an asset, it is only natural to wonder if it will be taken away from you to pay your debt when you file bankruptcy. Fortunately, retirement is not considered part of your bankruptcy estate, and thus it cannot be taken from you if you file a case. Other types of financial benefits that are untouchable during bankruptcy include:

•         Social security benefits.

•         IRA’s and pensions

•         Depending on the specific facts of your case, most checking and savings accounts as well as CD’s are safe in bankruptcy.

This is good news for those trying to enjoy the fruits of their labor, but needing a little relief from the bankruptcy court. Knowing that your retirement is safe is a huge relief, and when you add to that fact the fact you can eliminate some of your debt through bankruptcy it becomes clear that for many people of retirement age, bankruptcy can help ensure you don’t run out of money as you age. The same is true for people still in the workforce, but how have fallen on hard times. Many retirement accounts transfer from job to job, and if you have to find new employment due to the economic downturn it is nice to know those funds are safe if bankruptcy is needed. Regardless of your age or amount you have managed to save for retirement, keeping those funds safe is of paramount importance. For more information about how bankruptcy impacts your assets, call our office.

For more information about how bankruptcy impacts your retirement accounts, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.

What Happens To My Co-Signer If I File Bankruptcy?

Not all debts are taken out by a single person, sometimes a co-signer is needed in order to obtain approval from the lending institution. Co-signed debts are debts where more than one person promises to repay the money loaned, and if one of the people who signed on the dotted line is not able to make payments the bank will look to the other debtor for repayment. This type of loan puts both people on the hook for making the payments, and when one of these people seeks the protection of bankruptcy the other signer is left as the only party to which the creditor will seek to collect.

When you file bankruptcy all of your debt is included, and that includes any debt that was incurred jointly with another person. The impact of the decision to file bankruptcy when you have joint debt is that the joint debt holder remains liable. So, if you have co-signers on some of your loans, it is important to understand that while you will not have to repay the loan, your consigner will be held responsible for payment. There are some protections offered to co-signers though, such as:

•         If you file a Chapter 13 and your co-signer does not also take bankruptcy, the law provides the protection offered by the automatic stay to your non-bankrupt co-debtor. This means that upon filing the lender is not permitted to contact the co-signer about the debt. In cases like this it is not uncommon for the lender to file for relief from the stay, so they can continue to pursue payment from the non-bankrupt co-debtor who signed the note.

•         Co-signers who do not also file bankruptcy will have the ability to negotiate with the lender for more favorable terms. Lenders are not permitted to speak with you about a debt that has been discharged because the bankruptcy law prohibits that type of activity, but non-filing co-signers are fair game. If your lender is willing to rework the loan for your co-signer, there will be no communication barriers in place as a result of the bankruptcy to that process.

If you are considering filing bankruptcy and have loans that have been co-signed, make sure your co-signer knows you are thinking about filing so they can take action to protect themselves if desired. If your co-signer is also your spouse, there may be benefits to just one of you filing, or it might be in your family’s best interest to file a joint bankruptcy case. Call us today for more information.

For more information about how co-signers are treated in bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.

How Divorce And Bankruptcy Can Help Eliminate Foreclosure Deficiencies

Getting divorced can leave your finances in significant distress, so much so that you might also face a foreclosure during or after your divorce case is final. Many times marital problems go hand in hand with money problems, but there are things you can do to make the best out of an unpleasant situation. If you are facing a divorce and are also facing potential loss of your home through foreclosure it is critical that you be aware of the possibility of being asked to pay for your home even after the foreclosure. This is because most times when a home sells at foreclosure sale the amount is not enough to satisfy the mortgage debt. When this happens there is a deficiency due and many lenders will take action to collect the deficiency from the homeowners. This can be a double or triple whammy if you are also getting divorced and your ex-spouse was supposed to take care of the mortgage debt in your divorce case.

Unfortunately, not everyone does as they are ordered to do, especially in divorces. It is not uncommon to hear of a child missing out on visitation with one parent due to the actions of the other, or for child support to go unpaid. These things happen even though the family law Judge has ordered support be paid and put a visitation schedule in place. It can also be typical for one spouse to be awarded the marital home in the divorce, but then neglect to make the payments. Because your mortgage lender was not a party to your divorce, if you both signed on the dotted line the lender can look to either spouse for repayment. And if your loan has gone unpaid long enough, you just might find yourself in the middle of a foreclosure case, even if your ex was supposed to take responsibility for the home and the debt that goes with the home. In this case you can do the following things:

•         Seek to hold your ex in contempt in the divorce case, which requires you to go back to family court and file a motion for contempt.

•         Consider filing bankruptcy to eliminate the debt, at least as far as you are concerned.

If you decide to go back to the family court for help, you might walk away unhappy. Even if the Judge holds your ex-spouse in contempt, if they are unable to pay the debt you will spend a lot of time looking for alternatives. But, with bankruptcy, you are able to list this debt as one of the things you no longer owe, and you can receive a discharge of that debt in the bankruptcy case; including any deficiency the lender might seek after a foreclosure sale takes place. This is because while lenders still have lien rights in property even when bankruptcy is filed, they no longer have the ability to collect the money due on the loan. If you have more questions about how divorce and bankruptcy can help you eliminate a deficiency balance on a foreclosed home, call us today.

For more information about how bankruptcy can help you with a mortgage loan deficiency after divorce, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Can I Be Fired From My Job If I File Bankruptcy?

When you are having financial difficulties, the last thing you want to worry about is the stability of your job. Your job is what provides a paycheck, and the ability to provide for your family. The combination of being on shaky ground at work, on top of being overextended on your monthly obligations, can be emotionally and financially devastating. This type of stress can be relieved though, because you do have options when it comes to getting your finances in order. One of those options, and one that works wonders for a lot of people, is to file for bankruptcy. If you are considering bankruptcy, you should know a few things about how it works and how your daily routine will be impacted.

A big concern for people thinking about filing for bankruptcy is whether their employer will find out, and fire them from their job. The law does not allow dismissal from work on the grounds of filing bankruptcy, but depending on your position you may want to make sure your employer is aware you are exercising your right to this legal remedy. For instance:

•         If you work at a bank or other financial institution, there may be concern over your ability to handle money if you are experiencing financial hardship.

•         If you are in a position to hold the funds of others in trust, you should advise those with the need to know of your plans to seek the protection offered by bankruptcy.

•         If you are applying for a job and one of the requirements is a credit check, you should be aware that this requirement is not always legitimate. We can help determine whether the request for your credit history is a necessary component to a job application.

Other concerns people have about how their lives will be affected by bankruptcy include whether they will get to keep certain things, and whether creditors can still collect on the defaulted accounts. The answer to whether you can keep certain pieces of collateral depends on the type of bankruptcy you file, and your intentions regarding the property. In any type of case, you are not permitted to hang on to things without paying for at least a portion of the loan. As far as the concern over creditor contact goes, all of your lenders are prohibited from contacting you about their debt the minute your case gets filed. If this sounds like the type of relief you need, call us today to find out the next steps.

If you have more questions about bankruptcy and if you can lose your job if  you file a case, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Can I File Bankruptcy And Keep My Stuff Without Paying?

With all of the information available on the internet or from well-intentioned friends it is easy to end up with conflicting data on important issues. After all, we all know someone who has taken to WebMD when they feel sick and then self-diagnosed their illness, only to find out that what they have is relatively minor and not the life threatening disease the internet search revealed. If you are facing a hardship and need help, it is best to seek the advice of a trained professional in the area. By asking a pro you can rest assured the information you obtain is accurate and this will enable you to take further action that is appropriate.

One common misperception about bankruptcy is that you can keep all of your things and not have to pay. People who file cases without the aid of a qualified bankruptcy attorney often make this mistake and then are surprised when their car is repossessed or when they receive notice of a foreclosure on their home. The plain truth is that bankruptcy is not designed to let you keep things without paying for them, but bankruptcy does offer some pretty great benefits. For instance:

•         In many cases unsecured debt is eliminated or at least reduced to pennies on the dollar. This can save you hundreds or thousands of dollars and allows you to pay for only what you want to keep.

•         Creditors are not allowed to call you and ask for payment once you file a case.

•         All collection efforts have to stop when you file bankruptcy; this means no more lawsuits and no more garnishments.

•         The debts that are discharged at the end of your case are no longer due, ever!

The rules of bankruptcy are complex and if you don’t follow them properly you do not receive the benefits. This is why it is so important to partner with an experienced and qualified bankruptcy attorney for your case. Allowing someone with the knowledge to get your case filed right takes the stress off your shoulders and gives you the reassurance you need that your finances will soon be fixed.

If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.

Five Ways To Fix Your Finances

Having financial goals is a good idea because it allows you to plan for your future. No one likes to be hit with an unexpected medical bill or home repair cost they cannot pay, and it is even less desirable to find creative ways to come up with the money needed to pay for your everyday living expenses. But not all of us make enough money to set a large chunk aside each month to build up an emergency fund, so when lift throws a curveball it can be hard to find ways to stretch your paycheck. This cycle of being unable to pay your bills as they become due can quickly cause you unwanted stress and anxiety, but there are things you can do to fix your money problems for good.

Five ways to fix your finances include:

•         Cutting back on certain expenses that are not needed, like a land line for your phone.

•         Negotiating lower interest rates with your credit card lenders, which many are willing to do if you have a good pay history with them.

•         Taking a second job in order to establish a savings account or to pay off an unexpected expense.

•         Downsizing your home to something smaller with a lower payment.

•         Consolidating your debt into one loan with only one payment per month.

Another option that will help you get your finances in order is to file for bankruptcy. Bankruptcy is helpful because it allows you to pay for only what you need while eliminating debt that is overly burdensome. When you are able to cut out some of your monthly payments you are able to save the money that was going to things like credit card bills or payday loans and this money can add up fast. By putting aside the money you used to spend on certain bills you can establish a savings account so when an emergency arises you don’t have to resort to a credit card or short term loan to cover the expense. Not having to pay higher rate bills also gives you the freedom to put money towards everyday expenses like groceries and utility bills without sacrificing payment on your house or car. We can help you get your money matters back on track; call us today to find out more.

If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.

Three Benefits Of A Bankruptcy Discharge

Filing bankruptcy can be confusing, because there are a lot of legal terms to understand. For instance, the automatic stay is a legal phrase you will hear a lot if you file bankruptcy and what it means is that all creditors are automatically stayed from contacting you once you file a case. In everyday language the result is that your lenders are prohibited from contacting you to collect their debt or even to ask a question about their loan the instance you file bankruptcy. The benefit is automatic, and that is why it is referred to as the automatic stay. Another term you hear a lot when talking about bankruptcy is the bankruptcy discharge. This is the goal of every person who files a case; to get a discharge. The discharge is an entry made in the case at the end of the matter and it is the legal finding that your debts are no longer due. If a debt is discharged in bankruptcy that means you no longer have to pay for that debt.

Three of the most important benefits of a bankruptcy discharge are:

•         All discharged debts are no longer due, so you no longer have to make the payments on these debts.

•         The lender on a discharge debt is not allowed to call you and ask for payment or contact you in any way about the discharged debt. If you do receive a call or correspondence about a debt you have discharged in bankruptcy, you can take action against the lender for violating the discharge order.

•         Because you no longer have to pay for discharged debts, you now have more money in your pocket to put towards other living expenses.

When you file a case you receive the benefit of the automatic stay, so the collection calls immediately stop. This freedom from harassing collection calls allows you to gather yourself and get on track with a budget while not having to pay all of your debts, and once the discharge is entered those debts are no longer considered valid and owing debts. When you take into consideration the fact you can stop paying on high interest rate unsecured loans the instant you file a case, will not have to make those payments during the case, and are no longer liable for those debts once the discharge is entered the benefits of bankruptcy quickly become apparent. For more information on how bankruptcy can help you, call our office.

If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you get prepared for what comes after we file your case, and have multiple locations where we schedule appointments.

 

Will A Short Sale Save My House?

Homeowners who are underwater on their mortgage often try every possibility to save their home from foreclosure. This could include trying to get the lender to rewrite the mortgage so the payments are lower or finding a new lender to do a refinance. One option out there that gets a lot of press is the option of doing a short sale. This process is confusing and will not allow a borrower to stay in their home, but can offer some relief as far as an impending foreclosure case is concerned.

A short sale is a transaction where the lender agrees to take a lesser amount than what is due on the loan instead of foreclosing on the house. Some of the most common concerns with short sales are:

•         What happens to the balance of the loan amount due? Most borrowers will not want to go through with a short sale only to find out their bank is still planning on coming after them for the deficiency. If you are considering a short sale it is critical to get the terms in writing so you are aware of your responsibilities after the transaction is finished.

•         If the deficiency is waived are there tax consequences? This is tricky and is a question best left to a CPA, but the general rule is that if the lender accepts a short sale they can still send a 1099 to the homeowner for the deficient amount that has been waived, because the lender can consider this amount as “income” to the borrower. This makes a huge difference when you file taxes and before agreeing to a short sale you should learn all you can about the tax consequences from a knowledgeable tax professional.

•         How long will a short sale take? Short sales are a notoriously lengthy process. If you are considering offering your lender a short sale it is best to buckle down and be prepared to wait a while before the deal is complete.

If your goal is to save your house from foreclosure a short sale can work for you, but if you want to remain living in the home a short sale will not work. A better answer is to file bankruptcy if you want to keep living in your house. Bankruptcy will let you eliminate some of your debt so you can pay the rest and this would include being able to make your house payment so you don’t get foreclosed out of your home. Call us today to find out how we can help you save your home.

If you have more questions about bankruptcy and how to save your house from foreclosure, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Who Is The Bankruptcy Trustee And What Is His Role In My Case?

Not everyone is familiar with the ins and outs of the judicial system, and going to court is not something most people do every day. So if you find yourself in need of legal assistance it can help to ease any anxiety you feel if you understand who the players are and what to expect after you get involved in a case. Most everyone is aware that legal cases have judges and sometimes juries, but in certain types of matters there are other participants that can have an impact on the case. For example in a child custody case there might be a person appointed to represent the children to make sure their best interests are protected. In bankruptcy court there is a person called the trustee, appointed on every case to look after the administrative functioning of the case. The trustee is not the same person as the Judge, but does have some influence over your case.

The role of the bankruptcy trustee includes doing the following things:

•         Making sure the person that filed the case is the person that shows up at the 341 meeting to answer questions about their debts.

•         Examines the entire financial picture of the debtor to make sure the chapter of case filed is the appropriate chapter for the financial situation.

•         Asks to see copies of all car titles and house papers to make sure the lender has properly noted their security interest in the collateral and if the lender has not done so, might seek to take that property and sell it for the benefit of the unsecured creditors in your case.

•         Looks for assets to distribute to creditors.

•         Determines whether a proposed Chapter 13 Plan is feasible and accepts the payments under a Chapter 13 Plan.

•         Disburses payments to creditors on an ongoing monthly basis for Chapter 13 cases.

The Trustee’s role is much more involved in a Chapter 13 case than in a Chapter 7 and this is due to the nature of a Chapter 13 vs. a Chapter 7. A case filed under Chapter 13 can take up to five years to complete, and the Trustee will be taking payments every month of those five years. If you miss a payment the Trustee might ask that your case be dismissed, so it is crucial to make your plan payments and listen to what the Trustee has to say about whether the plan you have proposed will work. In either type of case you are never alone and left to answer questions posed by the trustee by yourself. We are with you every step of the way and will answer for you while advocating for solutions that make sense.

If you have more questions about bankruptcy or need help deciding what to do about overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

The Ten Most Frequently Asked Questions About Bankruptcy

Most major life decisions are only made after careful thought and consideration. In order to find out the information you need to make a big decision it is okay to ask questions and do a little bit of research. Only after you have gathered all of the data you can and have consulted a trained professional can you make an educated choice about what is best for you. The answers you need depend on the issue you are facing, and if that issue is how to get out from too much debt you need to partner with a qualified debt management and bankruptcy attorney. An experienced bankruptcy attorney will be able to help you identify areas of concern and put those concerns to rest.

The ten most frequently asked questions about what happens when you file for the protection of bankruptcy are:

•         Will I have to give back my stuff or can I keep it? The answer to this question depends on whether you are willing and able to continue making payment for certain things. Most everyone needs a car and a house and you are able to stay in your home and keep driving your car when you file bankruptcy, but you do have to make the payments on the loan to do so.

•         If I can’t pay my house or car payment now, how will I be able to do so after I file bankruptcy? The benefit of filing bankruptcy is that it allows you to focus on the debts that matter, like your car and house payment. Other debts are either significantly reduced or eliminated altogether. When you no longer have to pay your unsecured credit card debts you have more money to put towards your house or car payment and sticking to your budget suddenly becomes something that is doable.

•         Will my creditors still call me for payment? Filing bankruptcy puts an automatic stop to all collection calls, so from the instant you file your lenders are no longer allowed to contact you about their debt.

•         What is a reaffirmation agreement? A reaffirmation agreement is like a new loan, it is your agreement to continue to pay for a debt even after the bankruptcy case is over.

•         How long will my case take? This depends on what type of case you file, with a Chapter 7 the case is over in about 120 days and a Chapter 13 can last as long as 5 years.

•         Will my credit be ruined forever? While filing bankruptcy is a mark on your credit you will be surprised at how quickly you can start rebuilding your credit simply by paying things on time. Now that you owe less because the bankruptcy has eliminated some of your debt you will be in a better position to pay all of your bills each month and this will help to improve your credit score.

•         Can I still get a loan if I file bankruptcy? You would be surprised at how quickly lenders are willing to approach you and offer loans or extensions of credit after bankruptcy. But be careful, you do not want to fall into the trap of predatory lending and take on too much debt again.

•         Who is the Trustee? The Trustee is an impartial person appointed to oversee the administration of your case.

•         How often can I file a case? This depends on the type of case you previously filed and how that case ended.

•         What are the social consequences of filing bankruptcy? The stigma once associated with filing bankruptcy is long gone and hardly anyone looks at filing bankruptcy as a failure, nor is it frowned upon. The choice is personal and if it works for you then it is a step worth taking.

We understand it is hard to make a decision about whether filing bankruptcy is the right thing to do for your family, and are here to help you decide. For answers to all of your bankruptcy related questions, call us today.

If you have more questions about bankruptcy or need help deciding what to do about overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.