Bankruptcy FAQ



Should I consider using one of those Credit Solution Companies?


Only if you want to make six months or more of wasted payments under the misguided idea that they are actually “helping” you. Sooner or later, you will realize this is not the solution to your debt problem.  They neglect to advise you that only the Bankruptcy Court’s Stay Order will offer you relief. When you file Bankruptcy you are protected under the Court Stay Order, which shelters you from creditor harassment from the day you file Bankruptcy. Our clients live to regret their decision to try the Credit Solutions Companies before seeking financial help through Bankruptcy. Be wary of these “debt relief” scams and dead-end “solutions”.



Will filing for Bankruptcy ruin my ability to obtain credit?


NO. Your future ability to get credit at reasonable interest rates will depend largely on how wisely you act after you file bankruptcy. If you exercise self-discipline and apply yourself to paying future bills on time (which you can do), you may be surprised how quickly you can begin to restore your credit. A lot of times clients’ scores are higher after filing bankruptcy than before.



What if my Car/Truck breaks down while I am under bankruptcy?


Often in the course of completing a Chapter 13 Plan, you may need to apply for credit to purchase a replacement motor vehicle.  The Court can and will give you permission to obtain credit to purchase a replacement vehicle while you are in Bankruptcy. It happens all the time. The Court understands ongoing dependable transportation is necessary to carry on your employment.



How do I decide between Chapter 7 and Chapter 13?


Your bankruptcy options are determined by a lot of personal circumstances. Everybody’s life situation is different. Attorney Harrington will sit down with you and discuss your personal options and give you practical information that will help you decide what is best for you.



Will everyone know I filed for Bankruptcy?


Generally no one but your creditors and the Court are aware of your filing.  It is not advertised in the local newspaper. As to A.B. Harrington Law Firm we are committed to confidentiality and your privacy.



What are some practical reasons for filing Bankruptcy?


To Stop/Avoid REPOSSESSION of a needed motor vehicle.


To Stop/Avoid FORECLOSURE on your home.


To Stop continuing interest piling up on credit card debt. If you have to pay anything back on a credit card, your payments are applied fully against the principal balance.


Many people based on the Court’s “Means Test” on family income only have to payback a small percentage of unsecured debt (credit cards etc); some even qualify to payback 0% on credit card bills/medical bills.  In almost all bankruptcy cases you will have more money left each month for living expenses.


PEACE OF MIND  that results from the end of creditor harassment/phone calls, collection letters



Should I wait to file for Bankruptcy?


For most people in debt trouble, the longer you delay/wait in making the decision to do what you need to do (file for bankruptcy) the problem only gets worse and you simply delay getting the relief you need and deserve.



What about my creditors?


What is best for you and your family is seldom what is best for your creditors.  If they are going to look after anyone, it’s their interests not yours. When you file Bankruptcy, they are no longer in control over you.



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