Bankruptcy Lawyer in Palmdale: Common Questions

Answers to Questions about Chapter 7 and Chapter 13 Bankruptcy

If I file for bankruptcy can I avoid losing my home?

When you file for chapter 7 or chapter 13 bankruptcy, you halt all collections actions. While the situation regarding your debt is being sorted out through bankruptcy court, negotiations can be taken to assist you if you do not want to lose your home. In most cases, particularly in the current scene in which thousands of people are facing foreclosure, you will not lose your home or any other personal possessions. You can find out more by speaking with a Palmdale bankruptcy lawyer from the Price Law Firm.

Will my credit be seriously damaged by filing for bankruptcy?

In fact, most people do not realize that a home foreclosure can damage credit more severely than filing for bankruptcy and avoiding foreclosure. As you no longer owe most of the debt on your earlier credit report, you can actually see a great improvement within a much shorter period of time than expected. If you carefully manage your finances after bankruptcy, you will soon be receiving offers of credit or high interest loans. Building up your credit by keeping every bill current will get you back on track, and greatly improve your credit report as well.

How do I know if I qualify for chapter 7 or chapter 13?

The first step is to review your finances, and to do the "means test". This test evaluates your current financial condition, both in debt and income, and if you fall within the restrictions of income, you can file for chapter 7, in which your unsecured consumer debt is discharged. If you don't qualify, you can file chapter 13, which allows you a period of years to pay off back debt, frequently at a greatly reduced amount and without penalties and interest.

Contact a Palmdale bankruptcy lawyer from the firm for immediate assistance and answers to your specific questions.