Bankruptcy FAQ

Below are some frequently asked questions and answers about bankruptcy. If you have additional questions or concerns, or if you wish to discuss your specific situation, call an attorney at the Greenbelt, Maryland, office of Vail A. Kaufman, P.A., today at 301-513-0500.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

The goal of any bankruptcy is to deal with debt in a way that works for you and to come out the other end of the process with a fresh financial start. Chapter 7 is quicker, cleaner, easier and less expensive. Many debts can be simply removed from your life in a Chapter 7. Chapter 13 is a structured repayment plan that allows you to repay your debts in amounts that you can afford. It can catch-up late mortgage payments, save your home or vehicle, or control tax and student loan creditors.

What happens to my house if I file bankruptcy?

Each bankruptcy situation is different. In many cases, we are able to keep clients in their homes. In a Chapter 7 the elimination of other debt can make the mortgage payment manageable. In a Chapter 13, paying mortgage arrears is a priority However, there are rare times when the home cannot be saved and it goes back to the bank.

How long does bankruptcy stay on my credit report?

The fact that you filed a bankruptcy can be reported by credit bureau reporting agencies for as long as ten years. You are unable to have this removed from your credit report, but after the bankruptcy process is completed if you have your discharge in one hand and your paystub in the other hand you will be able to get all the credit you want.

Can I file bankruptcy a second time?

You can file for bankruptcy again, but there are certain time restrictions that limit when you can file depending on the type of bankruptcy you filed the first time and the type that you wish to file this time. For example, if you previously received a discharge in a Chapter 7 You must wait eight years to file another Chapter 7 to get a discharge. If your situation requires that something be done sooner, a Chapter 13 can be filed after four years.

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Talk to our firm about bankruptcy now. Call 301-513-0500 or contact us online and schedule your free, no-obligation consultation with a lawyer at our firm.