What happens to my credit in a Chapter 7 bankruptcy?
If you have good credit to begin with, you will likely see a slight initial drop in your credit score after you file. If your credit was poor, it will either stay the same or you may see a slight increase. You will receive a credit report with a projected credit score one year from filing when we draft your petition.
There are steps you can take post-bankruptcy to rebuild your credit. If you finance a vehicle after you file, the positive payments will be reported. If you keep the same vehicle through your bankruptcy, the lender won’t be required to report positive payments. You can also open a secured credit card through your bank, or a traditional credit card if you get approved. Our office offers $0 down post-filing payment plans that credit report as well.
Do I file Chapter 7 or Chapter 13? How do I know?
If you make above the median income level for your family size and are unable to pass a means test as described above, you may still be able to file a Chapter 13. A Chapter 13 is also ideal for those wanting to retain vehicles, houses, or other assets that they are behind on. You can also file Chapter 13 if you have filed bankruptcy too recently to file a Chapter 7, or if your assets are above the exemption limits for your state.
I filed Chapter 7 but I am in debt again, can I file again?
Once you file a Chapter 7 bankruptcy, it is eight years before you can file again. If it hasn’t been eight years yet, you may still be able to file a Chapter 13 bankruptcy. Since a Chapter 13 lasts 3-5 years, your eight year period may finish during your Chapter 13. If so, it may be converted back into a 7 if the eight year period ends during your 13.
How much does filing bankruptcy cost?
The court filing fees for a Chapter 7 bankruptcy are $335. For a Chapter 13, the filing fee is $310. For both chapters, you will be required to take online credit counseling courses that will cost around $30. Attorney’s fees will depend on the chapter you file, the complexity of your case, and the type of payment arrangement you set up with your attorney.