FAQs About Bankruptcy
The law is a complicated thing. It is ever-changing and full of detail which makes it difficult to know about everything. When it comes to cases involving bankruptcy and social security disability, numerous intricacies and details need to be considered. This inevitably leads to questions from our clients. Below, you will find some of the most common ones that we receive and their answers.
- Is there a minimum amount of debt to qualify for bankruptcy?
No, there is no minimum amount of debt that is required to file for bankruptcy. You should keep in mind that there is a maximum though. You can only apply for bankruptcy for up to $1,395,875 in secured debt and $465,275 in unsecured debt as of April of 2022. The amounts do periodically change, so check the IRS website for updated maximums.
- Do you need a lawyer to file for bankruptcy?
No, you can file for bankruptcy on your own. We always recommend that you hire a bankruptcy attorney because the law governing bankruptcy is complex. It can be difficult to understand the nuances and complexities of bankruptcy law. A lawyer will help you through the entire process and give you the best chance at reducing or eliminating your debt.
- Does filing for bankruptcy eliminate student debt?
In general, student loans are considered non-dischargeable. You are going to be responsible for paying back your student debt even after filing for bankruptcy. There are some exceptions to this which would include you proving that paying back your loans would result in undue hardship for you.
- Will filing for bankruptcy stop harassing debt collection calls?
When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay on collection calls is put in place. Once the stay is in place, debt collectors and creditors cannot contact you by phone or mail and cannot file a lawsuit against you.
- How long does bankruptcy affect my credit?
It will depend on what type of bankruptcy you file. Be sure to ask your attorney for the exact details. Regardless of the type of bankruptcy you file, it will not remain on your credit history or impact your score forever.