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What is an Automatic Stay and how does it affect me? |
An automatic stay is the condition that is set the moment you file your bankruptcy petition. What this means is that from that very moment no creditors are allowed to continue collection efforts; all foreclosures, garnishments, and in some cases reposessions have to stop. Keep in mind, it takes roughly two weeks for the news to reach your creditors that you have filed bankruptcy and you may still receive calls.
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I just filed for bankruptcy. What do I tell the creditors if they call? |
If they call, which I am sure they will for a couple of weeks, tell them you have filed for bankruptcy protection. They will most likely ask you who your attorney is. Tell them you filed Pro Se and give them your case number and filing date. After you give them that information, you do not have to talk to them any further and they have to cease all collection activity.
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If I plan to keep my car and make payments on it as agreed, should I list it in the bankruptcy? |
Yes, by law you have to list all of your debt whether or not you plan on keeping the debt. This includes your house, if you own, or your lease if you rent.
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If I file bankruptcy will, I ever get credit again? |
The simple answer is yes. Contrary to popular belief, most of the time your credit score goes up shortly after filing for bankruptcy. This is because your debts that once were counted against you become unrated and included in the bankruptcy on your credit report. There are a lot of companies out there tripping over each other to give credit to people who have filed. Most times you will recieve a credit offer in the mail before your even discharged.
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People say I shouldn't file bankruptcy because it will ruin my credit. Is this true? |
This is a double edged sword. Yes, the bankruptcy will stay on your credit report for 7 to 10 years, but if your to the point that you need to file bankruptcy, most likely your credit is severely effected already and you can only go up from here.
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I see ads all over the place for debt consolidation or counseling. People say it is better to do this than file for bankruptcy. Is this true? |
While debt counseling can help, some more than 70 percent fail at this avenue. The reason for this is because they require so much money to keep your creditors at bay and very little of that money goes to your debts. Most of it goes to the counseling company for "administrative fees". If you choose this route, look for a non-profit agency as this will be your best chance.
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I got contacted by a creditors asking me if I want to reaffirm my debt. What does this mean? |
Reaffirming a debt is just another way of saying that you want to keep this debt as is. You can reaffirm a debt if you like, but it is strongly not recommended. You DO NOT have to reaffirm any debt that you file bankruptcy on. This is a VOLUNTARY action.
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What is the 341 meeting or "meeting of the creditors"? |
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