Certain facts about filing for bankruptcy

Filing for bankruptcy can be a scary thought in itself. The whole process can be a bit unnerving and you may have several doubts. There are some common questions that most people have. Some of them may be considered irrelevant in the face of bankruptcy. However, the answers to them can set one’s mind a sort of peace. Considering that uncertainty is a part of filing for bankruptcy, one of the most common questions asked is how many times can a person file for bankruptcy? When it comes to filing under chapter 7, you are eligible to do it six years from the date of your first attempt. In the case of bankruptcy under Chapter 13, you can do it at any point. Bankruptcy is all about trying to get out of being a debtor. To do this however, a certain amount of fees are required. Chapter 7 works out to around $200 and Chapter 13 around $185. Joint petitions are not charged any higher. The next worry for most people is whether they will lose some of their property or material possessions because of filing for bankruptcy. This does not happen unless your property was included as part of debt recovery. The nuances of this vary between Chapters 7 and 13. Not all debt is erased with filing for bankruptcy. Some of which will continue are those related to child support and alimony. Student loans too cannot be waived. It will also include that debt that is not part of the petition. Loans that have been secured fraudulently are not exempt and neither are mortgages or valid liens. Going to court is also something that worries people. You will have to attend the 341 meeting, where all creditors who decide to come will be there. This can happen a little after a month of filing the petition. These are short, procedural meetings and you will be given advance notice from the court about it or any other meetings. Once you file for bankruptcy, creditors will automatically stop collection procedures in your case. This is as soon as they get intimation of the filing. They will stop calling you as soon as they receive a copy of the petition or the proposed discharge. Alternately, your lawyer can call them and inform them about it.