Bankruptcy: Frequently Asked Questions

Q: Can I re-establish credit after filing bankruptcy?
A: To the surprise of many — YES! You will find credit card applications start arriving usually within six months. BE CAREFUL — and only take on what you can afford. You will have a fresh start with your debt. Don't blow it, because you cannot file Bankruptcy again for another six years after filing.

Q: If I've filed bankruptcy before, can I file again?
A: YES — it just depends when you filed originally. Chapter 7 Bankruptcy requires you wait six years between filings. There are fewer time restrictions when filing a Chapter 13.

Q: How do I stop creditors from harassing me at work or calling me at home?
A: All attempts to collect on debts must stop the moment you file bankruptcy,

Q: What if I'm about to have my car repossessed or my house foreclosed and taken away by the bank? In fact, I'm being sued by some law firm one of my creditors. How do I stop all of this?
A: It all stops once you file your bankruptcy papers. Don't waste time. Contact a bankruptcy attorney who is also a Michigan bankruptcy lawyer right now.

Q: Will I have to give back my computer and stereo?
A: Probably not. A good bankruptcy lawyer will help you sort out Michigan's exemptions.

Q: Can I keep a credit card after I file a Chapter 7 Bankruptcy?
A: You may try to do what is called Reaffirmation Agreement — where you ask the party if they will be willing to let you keep the card and, obviously, the debt that goes along with it. However, we do not recommend it. The purpose of filing a bankruptcy is to get rid of your debt and start fresh with a new credit history. You will probably be better off just eliminating all of your debt.

Q: Can I keep a credit card after I file a Chapter 13 Bankruptcy or can I discharge debt in a Chapter 13?
A: You actually will be required to pay whatever debt that you can afford to pay in a Chapter 13 — that means you will be able to discharge some of your unsecured debt, or none of your unsecured debt, depending on how the plan works out. If you want to include the credit cards in your plan, you will pay your debt back at a zero-percent interest rate.

Q: How long will a bankruptcy stay on my credit report?
A: Let us pose this question first: How long is anything on your credit report? The answer is: FOR LIFE — unless you file a Chapter 7 Bankruptcy. The reason why this is an issue is because banks and credit card companies don't want you to file — so, they say that your credit will be ruined for the next seven years after filing. The truth is you will not be allowed to re-file bankruptcy for seven years, but right after initial filing your credit score will improve — and within a year your score will probably be more than 600.

Q: What do I need to bring in at the time of the appointment?
A: You just need to bring yourself, and certain initial filing fees. For the second appointment, you  will need to bring the last three years of tax returns, and you will also need to bring in your pay stubs.