Deciding to file for bankruptcy is an important and sometimes overwhelming choice to make. One of the best ways to make an educated decision is to find out the answers to commonly asked bankruptcy questions. I’ve posted a few below for you to consider:

Will filing for bankruptcy stop creditor harassment?

Handling the continuous onslaught of phone calls and voicemails from creditors can be stressful. Fortunately, bankruptcy gives you the ability to stop the creditor harassment. If you decide to move forward and file for bankruptcy, your filing will result in an automatic stay order. This order will make it illegal for creditors to call you anymore. They will no longer be allowed to collect on your debt. This is one of the benefits of filing.

What does a debt discharge mean when I file for bankruptcy?

When you are eligible for Chapter 7 bankruptcy and decide to move forward with your filing, a debt discharge will wipe away all previous debt. What a Chapter 7 debt discharge does is take away any outstanding debt liability. In other words, you don’t have to pay those debts off. Not everyone qualifies for Chapter 7 bankruptcy. Speaking with a bankruptcy attorney is the best way to find out what the right solution for you is.

Does filing for bankruptcy ruin my credit?

Bankruptcy can be a great way to start fresh for someone that can no longer keep up with the debt and financial commitments they face. In many situations, individuals filing for bankruptcy have sub-par credit to begin with. Many of these same people will see their scores improve over time after filing.

It’s important to note that filing will affect your credit. In most cases, filing will stay on your credit report for at least ten years. Although, sometimes this time period is less. While on your report, the bankruptcy filing can negatively impact your credit. However, bankruptcy is a way to take back control, start anew, and begin rebuilding your credit. It is important to keep in mind that your situation is unique as is your credit history. The type of bankruptcy you file as well as where your credit currently is at all play a role.

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