Common Bankruptcy Questions | Northern Arizona Bankruptcy Lawyers

Will bankruptcy ruin my credit permanently?

No, your credit will be severely impacted once your bankruptcy is complete, but you no longer have to worry about more points being deducted from your credit score for late payments to creditors. Those debts or most of those debts will be eliminated in a chapter 7 bankruptcy or reorganized in a repayment plan in a chapter 13 bankruptcy. Once bankruptcy is discharged in a chapter 7 bankruptcy your debts are eliminated and the only way for your credit score to go is up providing you maintain payments on new debts. In a chapter 13, after your bankruptcy has been filed, all debts are arranged into one single payment. Once that time period is over you can rebuild your credit once again.

Can I include my tax debts in bankruptcy?

It is possible to include certain tax debts in bankruptcy. Chances are any new tax debts will not be eligible for bankruptcy, however debts 2 years or older may qualify but you should discuss your specific situation with your Northern Arizona Bankruptcy Attorney.

Will I lose my home if I file bankruptcy?

Only if you include your home in a chapter 7 bankruptcy you will lose your home. You don't have to include it, and in a chapter 13 bankruptcy your lender will usually work with you or your trustee to assist you in modifying your payment arrangement.

Can I buy a house after filing bankruptcy?

It may take time but many people are able to purchase a home after filing bankruptcy. Typically it depends on the lender. Most lenders often require a good payment history, a specific credit score rating, and 2-3 years after your bankruptcy discharge or filing.

Can I remove Judgments in bankruptcy?

Some judgments are eligible in a bankruptcy, there are many factors that determine eligibility for a judgment, talk to  your Northern Arizona bankruptcy attorney for more information, so yes and no. It depends.

Can I buy a car after filing bankruptcy?

Yes, in fact you can purchase a vehicle once your bankruptcy is discharged in a chapter 7 bankruptcy. Your interest rate will usually be much higher than usual, and you may not qualify for a large amount. It depends on the auto lender or car dealership. In a chapter 13 bankruptcy, most people who have vehicles usually retain them.

Can I obtain credit cards after bankruptcy?

Just like auto loans, yes. There are many lenders who specialize in offering credit products to consumers just coming out of bankruptcy. Interest rates are high but you can start to rebuild your credit right after discharge.