Q: Do I have to include in my bankruptcy everyone that I owe money to?
A: Yes. The Bankruptcy Code requires that you disclose all of your debts/liabilities.
Q: Do I have to list everything I own?
A: Yes. The Bankruptcy Code requires that you disclose all of your assets.
Q: Will I lose my car(s) if I file bankruptcy?
A: Generally speaking, the vast majority of those filing bankruptcy do not lose their car. Under the Ohio Exemption statute, you may exempt up to $3450 of equity per automobile per debtor.
Q: How will filing bankruptcy affect my credit score?
A: Filing bankruptcy will cause your credit score to suffer a one-time drop, but filing will also stop your creditors from continuing to report late payments, which normally cause your credit score to continue to spiral downward each month.
Q: How long can my creditors report bankruptcy on my credit report?
A: Your creditors may report for up to ten years that they were discharged in bankruptcy.
Q: Will I be able to get a loan after I file bankruptcy?
A: Your ability to obtain a loan after you file bankruptcy is completely under your control. As long as you practice good financial management and re-establish good credit habits, you will most likely be able to obtain a loan.
Q: How will I improve my credit score after bankruptcy?
A: There are a number of resources and tools you can use to improve your credit score after filing bankruptcy. We will provide you with a number of resources to help you.
Q: Can bankruptcy stop garnishments?
A: Yes. When you file for protection under the Bankruptcy Code, all collections activities are stopped under the automatic stay. See Garnishments are Real and Painful.
Q: Can bankruptcy stop a foreclosure of my home?
A: Yes. When you file for protection under the Bankruptcy Code, all collections activities are stopped under the automatic stay, including foreclosure proceedings.
Q: Can I keep my house or car if I am behind on my payments?
A: Generally speaking the answer is yes, but you may need to file under Chapter 13 if you are behind on the payments for a secured debt that you want to keep. One of the advantages of Chapter 13 is that it allows you to get caught up on arrearages by spreading the payment out over a period of months. Try to get your mortgage lender to do this for you.
Q: Will the trustee take my house and sell it?
A: Most likely you will be able to keep your house. One of the trustee’s duties in a Chapter 7 case is to find assets and turn them into cash. A big factor is how much equity you have in your home. The Ohio Exemption Statute provides that each debtor may claim a $20,000 homestead exemption in their principle place of residence.
Q: Will my student loan be discharged?
A: Generally your student loans will not be discharged. There have been cases where student loans have been discharge due to undue hardship, but the standard is very high.
Q: Can I eliminate my second or third mortgage?
A: It is possible to have your unsecured second or third mortgage determined wholly unsecured and therefore discharged in a Chapter 13 case.