Asked Questions about Bankruptcy
Answered by Our Skokie Bankruptcy Attorneys
Serving Business Clients in Skokie, Chicago, Naperville, Joliet, Aurora, Wheaton, Waukegan
Considering filing for Chapter 7, Chapter 11, or Chapter 13 Bankruptcy can be scary and intimidating, but we can help you. We have compiled some of the most frequently asked questions below though we will answer any questions during a free a consultation with one of our Attorneys.
Q: Will filing for Bankruptcy hurt my credit score?
A: No.
If your credit score is anywhere below 650 you may be surprised to find out that filing for Chapter 7, Chapter 11, or Chapter 13 Bankruptcy will help you to build your credit score. Most of my clients are able to expect a 30+ point increase in credit score following a Bankruptcy filing. For those who think that their credit score may be damaged by filing for Chapter 7, Chapter 11, or Chapter 13 Bankruptcy, consult a Skokie bankruptcy lawyer before deciding against Bankruptcy; your credit score may not be as high as you think. In most cases, you have already missed a few mortgage payments, creditors have gotten judgments against you, and your home may be in foreclosure...these are all very quick credit score killers. When filing for Bankruptcy, you will be wiping yourself clean of the bad marks on your report and have a clean slate. Once the proverbial dust settles from the initial Bankruptcy discharge leaving you virtually debt free, you are a good credit risk, which translates in to a better credit score.
Q: If I file for Bankruptcy, won’t I lose everything I own?
A: No.
In many cases, you will not lose anything. If you file under Chapter 11 or Chapter 13 instead of Chapter 7, you will not have to get rid of anything and can even cure missed mortgage payments through your Chapter 11 or Chapter 13 Bankruptcy plan. If you cannot afford to file under Chapter 13 and qualify for a Chapter 7, you have the option of reaffirming your secured debts in order to hold on to the property you are paying off. Ironically, filing for Bankruptcy is often the only way to save these assets, including your home. A Skokie foreclosure lawyer can better explain how to save your property. Remember, your debt is what is threatening the loss of everything you have; filing for Bankruptcy is the solution.
Q: Will my employer fire me if they find out I have filed for Bankruptcy?
A: No.
This is a common fear that simply has no basis in reality. The Bankruptcy Court does not require that your employer be informed that you are filing for Bankruptcy. In fact, typically, the only parties that must be notified are your creditors. Unless you have borrowed money from your employer, there is no need to inform them that you are filing for Bankruptcy; it is simply none of their business.
If you have any more questions, please contact a Skokie bankruptcy attorney at our law firm now to set up a consultation.