FAQ
The following questions are often asked regarding bankruptcy and its circumstances and consequences here in the New York City area. We are available to discuss your particular situation further, please take a moment to contact us.
Q. Will my filing bankruptcy hurt my credit?
A. If you have been paying all your creditors on time the amount of money that is required, a bankruptcy will show up on your credit and hurt your chances for more credit.However, the majority of people who are considering bankruptcy already have a bad credit rating due to late payments or non payments on their bills. They already have judgments, an attachment on their bank account or their wages are being garnisheed. In these situations, it is necessary to file and get the relief needed. For people in this type of financial situation, it is generally too late to begin worrying about tarnished credit.
Q. Will I ever be able to establish credit again?
A. Yes, of course. This depends on what you are purchasing and from whom. Large national companies are not willing to give credit when they see that a person has filed a bankruptcy. However there are a lot of companies and individuals who are anxious for your business, and are willing to extend credit. They know that after you have filed a bankruptcy, you are free and clear of your debt as well as the fact that you are unable to file another bankruptcy for several years.
Q. How do I start establishing credit once again?
A. Everything takes time. Many credit card companies offer a credit card for those who have filed a bankruptcy. They frequently advertise on the web and in newspapers. This is a start.
Q. Will I ever be able to buy a home or a car?
A. This depends on the type of job that you have and the amount that you earn, as always. If you have filed a bankruptcy, then you would be faced with paying higher interest rates. That only makes sense.
Q. If necessary, will I be able to file another bankruptcy in the future?
A. Yes, you will have to wait eight years to file another Chapter 7, but if you get into financial difficulties again, then there are other remedies such as a Chapter 13, for which you won’t have to wait as long. Hopefully, you will only have to do this one time in your life.
Q. Can I discharge student loans?
A. No. Under certain circumstances, you might by proving undue hardship. But this frequently does not work and you will be responsible for repaying them.
Q. What about discharging Federal Income Taxes?
A. If the taxes are an old debt owed to the IRS and you filed returns for the years that you owe these taxes, then under certain circumstances, they can be discharged. The taxes have had to been accessed by the IRS more than three years prior to the filing of your bankruptcy case. Newer taxes are non-dischargeable, and therefore, you are responsible for them.