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Filing for bankruptcy can be a stressful experience, especially when you don’t know how it will affect your current and future finances. Many people work with a bankruptcy lawyer to guide them through the process. Don’t go into your first meeting with an attorney uninformed. Here are some answers to questions bankruptcy lawyers frequently address.

Bankruptcy Lawyer FAQ

What debts are discharged?

A bankruptcy will discharge or reorganize most unsecured debts, including medical bills, credit card debt, and other personal loans. However, criminal fines, alimony, child support payments, and student loans can’t be eliminated through bankruptcy.

What’s the difference between Chapter 7 and Chapter 13 bankruptcy?

bankruptcy lawyerChapter 7 bankruptcy liquidates assets when an individual or business is unlikely to be capable of repaying debt. Chapter 13 filing reorganizes debts into a repayment schedule based on the filer’s debt load and future earnings.

Will I lose my property?

In a Chapter 7 bankruptcy, property, such as stocks and a second car, are sold off to pay back some of what is owed to creditors. Many “reasonably necessary” possessions, including furniture, household appliances, and a home—if the mortgage is current—are exempt. In a Chapter 13 bankruptcy, filers keep most of their property because their income is deemed sufficient for settling debts in the future.

How will it affect my credit score?

Filing bankruptcy will hurt your credit score, but not permanently. Filings disappear from your credit report after 10 years. Remember, elimination of old debts will allow you to meet current financial responsibilities. As you rebuild your finances, you’ll establish a more stable future and improve your creditworthiness.

 

If you need help from a bankruptcy lawyer, contact Bueker Law Firm in Stuttgart, AR. Serving central and southeastern Arkansas since 2001, attorney Jeremy Bueker will aid you in finding the best solution to help you regain your financial footing. To learn more or to schedule an initial consultation, call (870) 673-1313, or visit the firm online to learn more about filing a petition for bankruptcy.

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