Frequently Asked Questions

What is Bankruptcy?

Depending on the type of Bankruptcy filing, it’s an opportunity for a consumer to gain protection from creditors using the courts, discharge unsecured debts entirely, or enter into an organized repayment plan. There are different types of Bankruptcy filings and pros and cons within each option. Chapter 7 and Chapter 13…

How does Bankruptcy work?

The two most common types of Bankruptcy filings are Chapter 7 and Chapter 13. In most cases you will almost always want to reach out to a Bankruptcy attorney near you and schedule a consultation; most of them do this for free so if they want to charge you, find…

How much does Bankruptcy cost?

The average national cost for Chapter 7 is around $1,800, but this will vary by your location.Chapter 13 varies, but expect to pay $3,000 or more.

How long does Bankruptcy take?

Chapter 7 is typically over in 90 days.Chapter 13 Bankruptcy plans run for 3 or 5 years. The vast majority of them are set for 5 years of repayments.

What are the benefits of Bankruptcy?

No impact to your taxes, unlike Debt Settlements where you could still owe taxes after everything’s settledUsually lower cost, especially Ch. 7Ch.7 is the fastest way out of debtYou’re under court protection which eliminates: judgements, liens, wage garnishments, and stops all collections, even a foreclosure.

What are the risks of Bankruptcy?

There is a period of time where it impacts your credit and may impact your immediate financial goals.History shows the majority of people who file Chapter 13 Bankruptcy risk not completing it, and therefore waste money and time on a solution that did not work.It’s public. This doesn’t impact most…

How does Bankruptcy impact my home?

How much of your home equity is protected in a Chapter 7 bankruptcy is determined by the state you live in. A limited number of states protect the entire value of your home, while others protect very little. If you do meet your states homestead/equity exemptions, you would continue to…

What happens to my car in Bankruptcy?

If you are still paying on your car loan, you can reconfirm the loan in Chapter 7 and continue to drive, and eventually own your car with regular payments. You could also use the Chapter 7 process to shed your loan obligation on an underwater car loan. If you own…

How does Bankruptcy impact my credit score in the beginning?

There’s no way to sugarcoat it, filing Chapter 7 or Chapter 13 Bankruptcy will cause a pretty hard hit to your credit.

What will show on my credit report during Bankruptcy?

There is no “during” period when filing Chapter 7 because it’s over so quickly. As for Chapter 13, you’re unfortunately in credit purgatory until your payments are complete. This can take up to five years so there won’t be any updates to your credit report until you’re done with all…

How will my score change during and after Bankruptcy?

After a Chapter 7 discharge, you can start rebuilding credit immediately. Given that a Chapter 13 Bankruptcy can take up to five years, there likely won’t be any meaningful credit rebuilding opportunities until it’s complete. 

What will show on my credit report after Bankruptcy?

A bankruptcy remark will show on your credit report for 10 years after filing Chapter 7. However, you can take steps to rebuild your credit immediately. A bankruptcy remark will show on your credit report for 7 years after filing Chapter 13. So if you think about it, since Chapter…

When will I be able to get a credit card, loan, car and/or mortgage after Bankruptcy?

You can apply for credit cards, loans and car loans right after discharging debts in Chapter 7 bankruptcy. However, the rates may not be ideal. You can apply for a mortgage 2-3 years after discharging as well. Please keep in mind that Chapter 13 is a much longer process than…

Can I file Bankruptcy on my own?

It is possible to file Bankruptcy for both Chapter 7 and 13 without a Bankruptcy attorney but it is not recommended or usually worth it. Working with a professional is advised since this is a legal process.

How does Resolve help with Bankruptcy?

We can connect you with licensed professionals in your state that will give you a no-cost initial consult. We can also help you understand what Bankruptcy would do or mean for your financial circumstances.

Why does Resolve only recommend filing Chapter 7 as an option?

You certainly should look into your options with Chapter 13 Bankruptcy. It is a forced repayment plan that typically lasts 5 years. It is inflexible and hard to complete. Most of us would look to settling debts for less outside of a Chapter 13, as it can go faster, provides…

How does Resolve determine the cost for filing Chapter 7 Bankruptcy?

The average national cost for Chapter 7 is around $1,800, but this will vary slightly by location.

If Resolve recommends Chapter 7 Bankruptcy, how soon can I file?

You can file Chapter 7 right away, which is especially useful if you are already involved with legal collections, or have been struggling under the weight of overwhelming debt for too long.

Why doesn’t Resolve include all of my debts when filing Chapter 7 Bankruptcy?

Here are some possible reasons your debts have been excluded: The creditor you’ve listed may not be in our system. If you do not see it listed, please check the spelling and/or contact support@helloresolve.com to let us know what type of debt you are trying to enter so we can assist you.Student…

Does Resolve offer partnerships with bankruptcy attorneys?

Not currently but stay tuned! However, we offer this helpful resource for now: http://network.nacba.org/advanced-search where you can find a bankruptcy attorney near you.

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