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Demystifying Bankruptcy: Answering Frequently Asked Questions From Clients

by | May 8, 2024 | Bankruptcy, Bankruptcy Attorney Tampa, Best Attorney Tampa FL

In my years of consulting with clients considering bankruptcy, I’ve encountered numerous questions that arise repeatedly in consultations. As individuals grapple with filing for bankruptcy, they often seek clarity on various aspects of the process to make informed choices. In this blog post, I address some of my client’s most common questions, shedding light on crucial concerns surrounding bankruptcy. 

How long does a bankruptcy case last?

The length of your bankruptcy will depend on the type of case you file. Usually, Chapter 13 lasts 3-5 years, while Chapter 7 takes 3-5 months. A Chapter 7 case might stay open longer depending on whether it involves assets.

How long will bankruptcy stay on your credit report?

If you file for Chapter 7 bankruptcy, it takes ten years for it to disappear from your credit report. If you file for Chapter 13 bankruptcy, it will be removed after seven years.

How can bankruptcy help you?

Bankruptcy stops immediate problems with debt collection. Many people file to prevent wage garnishments and lawsuits, giving them time to manage their debts more efficiently.

Can everyone file for bankruptcy?

Not everyone can. Chapter 7 has rules concerning income, and Chapter 13 has debt limits. The best option depends on each person’s situation. You will need to discuss your options with an attorney to determine which chapter bankruptcy best fits you.

Why do people declare bankruptcy?

Often, a person has too much debt and can’t pay it all. This can be due to unexpected health problems, divorce, losing a job, retiring, or having a fixed income. 

What debts go away with bankruptcy?

Bankruptcy can erase most debts, such as credit card and medical bills. But some might not, like federal income taxes, alimony, student loans, and obligations incurred through fraud.

The information provided on this page is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Please contact a licensed bankruptcy attorney to determine your bankruptcy eligibility options.