|
Will My Spouse Be Affected?
Your wife or husband will not be affected by your bankruptcy if they are not responsible (did not sign an agreement or contract) for any of your debt. If they have a supplemental credit card they are probably responsible for that debt. However, in community property states, (California) either spouse can contract for a debt without the other spouse’s signature on anything, and still obligate the marital community. There are a few exceptions to that rule, such as the purchase or sale of real estate; those few exceptions do require both spouse’s signatures on contracts. But the day-to-day debts such as credit cards do not require both spouses to have signed.
Who Will Know?
Bankruptcy filings are public records. However, under normal circumstances, no one will know you went bankrupt. The credit Bureaus will record your bankruptcy and it will remain on your credit record for 10 years.
I Was Bankrupt Before, When Can I File Again?
A person can file Chapter 7 again if it has been 8 years since he or she was discharged from the previous Chapter 7 bankruptcy.
Can I Keep Any Credit Cards?
Whether a debtor keeps credit cards after filing bankruptcy is up to the credit card company. If you are discharging a credit card they will cancel the card unless you reaffirm the debt. Even if you have a zero balance the credit card company might cancel the card.
Can My Boss Fire Me For Filing Bankruptcy?
No. U.S.C. Sec. 525, prohibits any employer from discriminating against you because you filed bankruptcy.
What Is A Bankruptcy Discharge And How Does It Operate?
One of the reasons people file bankruptcy is to get a “discharge.” A discharge is a court order which states that you do not have to pay most of your debts. Some debts cannot be discharged. For example, you cannot discharge:
- Debts for most taxes
- Debts incurred to pay nondischargeable taxes
- Debts that are domestic support obligations
- Debts for most student loans
- Debts for most fines, penalties, forfeitures, or criminal restitution obligations
- Debts for personal injuries or death caused by the debtors operation of a motor vehicle while intoxicated
- Some debts which were not properly listed by the debtor
- Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged
- Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts
- Debts owed to certain pension, profit sharing, stock bonus, other retirement plans, or to the Thrift savings plan for federal employees for certain types of loads from these plans.
- The discharge only applies to debts that arose before the date you filed. Also, if the judge finds that you received money or property by fraud, that debt may not be discharged.
It is important to list all of your property and debts in your bankruptcy schedules. If you do not list a debt, for example, it is possible the debt will not be discharged. The judge can also deny your discharge if you so something dishonest in connection with your bankruptcy case, such as destroy or hide property, falsify records, or lie, or if you disobey a court order.
What Is A Reaffirmation Agreement?
Even if a debt can be discharged, you may have special reasons why you want to promise to pay it. for example, you may want to work out a plan with the bank to keep your car. To promise to pay that debt, you must sign and file a reaffirmation agreement with the court. Reaffirmation agreements are under special rules and are voluntary. They are not required by bankruptcy law or by any other law.
If you reaffirm a debt and then fail to pay it, you owe the debt the same as though there was no bankruptcy. The debt will not be discharged and the creditor can take action to recover any property on which it has a lien or mortgage. The creditor can also take legal action to recover a judgment against you.
|
