Chapter 7

Chapter 7 questions and answers

Learn more about Chapter 7 @ Brutallyhonest Learning.

Q: chapter 7?
whats the lenth between filing chapter 7 if you filed b4.... hubby had a heart attack recently and he filed 7 b4 .....can he file again? he filed in 2001

A: he can!

Q: Chapter 7?
After you file chapter 7, are creditors still allow to harrass you by mail or calling on your job or contacting people that know you? If no, should I contact my lawyer and sue them?

A: If they are doing this then they are engagaed in harrassment. Your attorney should be notified immediately. What they are doing is illegal. Only file a case, if you can properly document the harrassment, otherwise it can backfire. If you can get proper documentation, then the Bankruptcy Court will need to be notified. The creditors are in violation of court orders and can be held in contempt. They are not allowed to contact you or anyone around you directly and must go only through your attorney. Once the contempt charges have been made and ruled on then sue them into bankruptcy-in a civil case, you only need preponderance of the evidence, this gives you evidence beyond a reasonable doubt and the win is a slam dunk.

Q: How long after declaring chapter 7 can you expect to be approved for a car loan?
Filing chapter 7 - going to need a car for a new job. Anyone have any experience? I've heard that some lenders see you as a good risk since: 1) You don't have any other debts to pay 2) You can't discharge your debt to them for 10 years by which time they would milk it out of you... Anyone know? Thanks!

A: Auto finance is what I do for a living and the answer is as soon as the ink dries on your discharge papers. There are several lenders out there that have very good bankruptcy programs just find a large dealer that advertises Special Finance and go talk to the Manager they should be able to help you.

Q: How soon after filing chapter 7 will my credit score start to improve?
I am thinking about filing chapter 7, and I was wondering how long - ish it takes before I start over again reestablishing credit and therefore raising my score. I guess I don't even really know what the score will be after filing. Any insight?

A: In about 2 years, provided you pay all your bills on time, your score should start improving. But bankruptcy will stay on your credit report for 10 years.

Q: Is surrending your house in a Chapter 7 bankruptcy the same as foreclosure?
My wife and I do not want the house anymore, and we need to relocate to be with family. If we give up the house in a Chapter 7, are we relieved of all liabilities pertaining to the mortgage?

A: check all the information on Chapter 7 Bankruptcy at this site. http://bankruptcy-info.we.bs/ bye. TC...

Q: How long will chapter 7 stay on public records?
I filed chapter 7 back in June 1996, just checked my credit reports 2 months ago and is gone. Will Employment background check now shows my past bankruptcy at all.

A: OK, time to correct the bad answers again. Bankruptcies are reported on your credit report for 10 years. After that they are deleted. Bankruptcies are PUBLIC records available for everyone to see if they simply go to the court and request it. They are NOT deleted. But since the person searching the info has to pay a fee to get them, they may not want to bother. In your case, if your employer wants to check you out that carefully, they will find your BK records. Personally, I would not want to work for someone who thinks a 10-year-old bankruptcy is a deal breaker.

Q: What is a Chapter 7 bankruptcy and what does it do?
I need to know what a chapter 7 is and what protections it offers me and where can I get help.

A: Chapter 7 bankruptcy is sometimes called “straight” bankruptcy. This bankruptcy cancels most of your debt in exchange you might have to surrender some of your property. To qualify for a Chapter 7 filing, you must pass an income test that compares your income with the median income of the state you live in. Pursuant to 11 U.S.C. Section 362(a), There is an automatic stay by the filing of your petition from taking any action to collect any debt from you or from enforcing any lien against you. A violation of the stay may be actionable pursuant to 362(h) or as contempt of court and punishable accordingly. Your creditors can not call or send you letters during this stay. Some times it pays to get your bankruptcy done by a Legal Document Preparer (LDP) and not a Lawyer. A LDP can usually do it cheaper because they only prepare the paper work and do not go to court. That is where lawyers charge you the most, court appearances. It may pay to consult an attorney or go online to the National Association of Legal Document Preparers (NALDP) to find a LDP who may be able to answer your specific question(s).

Q: How long should I wait after my chapter 7 discharge to buy a car?
My chapter 7 will be discharged June 4, 07, as a result of this filing (back injury) I lost my truck. How long should I wait before attempting to finance another vehicle?

A: Buy another car when you have the cash saved up to purchase it. I also suggest you read The Total Money makeover by Ramsey about debt, budgeting, and saving money.

Q: Is it better to settle my debts or file for Chapter 7 bankruptcy?
I get letters from creditors offering to settle my debts for a lower amount. I owe about $17,000. Some debts have been charged off and I don't know who to contact now. Doesn't it still hurt your credit to pay off the debts anyways? Isn't Chapter 7 just easier? Please help from anyone who has gone through Chapter 7. Thanks!

A: If you are able to settle the debt, settle it....Bankruptcy as the last post stated stays on your credit report for 10 years...the debts stay for 7 years, and will show as included in the bankruptcy. If you decide to pay them off, make sure you request a pay to delete so they take them off your credit report. To settle would be easier if you have the available money to do so. In the future when trying to finance anything new, they will look at your current payment and not necessarily the old debts. Chapter 7.........no it's no easier, it's easy to pay an attorney, it's easy to file, take the credit counseling and wait to have it discharge...It's hard to re-establish credit, harder to buy things in the future, and harder to find jobs if the check your credit report for employment. There is nothing easy about filing a bankruptcy. If you do file, learn from it and re-build and try not to do it again..there is life after it, but, it's a tough road to climb! Good Luck!

Q: How do I go about fixing my credit after filing chapter 7?
I filed chapter 7 back in 2004 and I checked my credit score and it is 645. I am looking to purchase my first home by the end of summer this year and I want to make sure that I am able to get a loan. I have heard that it is hard to get a loan if you have filed chapter 7. Any and all information is greatly appreciated.

A: Visit the resource below. You'll find plenty of articles that will help you:

Q: Filing chapter 7 and surrendering home, can you help me understand foreclosure process?
We will be surrendering our home in our Chapter 7 bankruptcy due to my husband being unemployed, and we can not afford the house any longer. Our lawyer briefly explained the foreclosure prcoess to us, but my question is, do we have to go to court for the foreclosure as well? Or is everything taken care of through the bankruptcy?

A: The chapter 7 and the foreclosure are two different things, even though they will interact and over lap with each other because of the bankruptcy. The foreclosure will run it's course as well as your bankruptcy. Most of the things you want to accomplish will take place during your bankruptcy. There are two type foreclosure procedures used in the United States #1 Non-judicial Foreclosure- Your lender would file a “Notice of Foreclosure/Default with the county in which the property is located and the foreclosure will take place. You will be sent a copy of this notice as well as a copy will be placed on the property being foreclosed on. Once you have received this notice you then have 90 days in which to bring your foreclosure current. You current lender might entertain the idea of refinancing your mortgage during this stage. Failure on your part to take any action to cure your foreclosure the lender would now file with the county a “Notice of Sale” again you will be mailed a copy and copies will be placed on the foreclosed property. A sale or auction date would be established by this notice. Failure to act on this “Notice of Sale” will cause the lender to complete the foreclosure sale. The opening bid price on the property will be the balance of the loan plus any fees incurred during the foreclosure process. Under this foreclosure procedure the lender will not come after you for any deficiency judgment or other property not listed on your loan docs when you signed for your loan. So any property your purchased before or after would not be affected. This foreclosure procedure is used by the majority of lenders in the United States. #2 Judicial foreclosure- Under this procedure the lender would partition a court to issue a foreclosure notice. You would be summon to appear in court to protect yourself from your property being foreclosed on. Under this procedure the lender could seek a judgment through the court for a deficiency judgment. Under this procedure you normally would have a right to redeem your property. This right of redemption could be anywhere from 30 days to 1 year depending on the state in which you reside. Most lenders do not use this procedure of going through the court system. Going through the court system is long and time consuming, plus the right of redemption would keep them from selling the property until after all the legal action is complete When you signed your loan docs the collateral for the loan you were getting was outlined. So if you own another home or house and it was not listed on your loan docs as collateral then the lender will not come after that property. I hope this has been of some use to you, good luck. “FIGHT ON”

Q: what happens when you file chapter 7 and your home is worth more than you owe?
I filed chapter 7 and abandoned my mortgage back to the lender. My home is worrth more than I owe. What happens to the equity?

A: This rarely happens in real life, but IF they sell the house for more than you owe (plus fees for foreclosure, taxes, utilities & sale) the mortgage company would cut you a check. In the real world the bank will sell the house for what you owe plus fees. Depending on where you live your house may not be worth as much as you think it is and almost never as much as appraisal. Good luck

Q: Whats the advantage to doing a chapter 13 over a chapter 7?
I am under the impression that on a chapter 13 you repay your debt but on a 7 you walk away from your debt. So does society look at a 13 more favorable? And in a 7 you start to rebuild your credit as soon as its discharged, in a 13 do you have to wait 5 years to start rebuilding your credit? If this is all true, why even offer a 13?

A: It's not so much that chapter 13 is offered it's more a matter of which do people qualify for. Under the new bankruptcy laws that went into effect back in October of 2005 people must now take whats called a means test to see which chapter they qualify for. If you make more then the mean average income for your State then you must file chapter 13 if not your eligible for chapter 7. Credit wise chapter 7 is much better because like you said people can start reestablishing their credit as soon as their bankruptcy is discharged.

Q: How long after filing a chapter 7 can you purchase a vehicle?
I'm considering filing a chapter 7. how long after i file would i be able to lease a vehicle. Especially dealing with the economy these days.

A: It depends on who you lease it from and how much money you put down. There are dealers that will sell on a contract or lease to anyone as long as you cover their cost in the car with your down payment. A reputable bank or finance company will not lease to you until you have shown that you have straightened out your credit. That would take probably several years.

Q: I filed chapter 7 recently and was in the process of being sued?
I recently filed chapter 7 and I am being sued by my finance company for a car that was impounded 2 years ago. It was impounded by the police because it was broken down and I never retrieved it because the tow was too expensive. I contacted the tow company prior to filing and they said that the car was crushed because I didn't come back for it. The police has records of the tow but the towing company says that it doesn't. Am I going to still be liable for the car since its not in my possession? ty for any help

A: Well, the court decides if you're actually liable, but my guess is, if it wasn't listed as a debt for your chapter 7, then yes, they're going to be able to come after you for it. Possession is irrelevant - you owe for the car.