Bankruptcy FAQ

Frequently Asked Questions About Bankruptcy

Huntsville Bankruptcy Attorneys | Crumbley, Blackwell, Wisda & Associates, P.C.

Considering bankruptcy? You may have a number of questions about your case, we have answers. Provided below are some frequently asked questions that we get often regarding bankruptcy in Alabama. If you look through the information below and do not find an answer to your question, send us your questions at questions@crumbleylaw.com. Our Bankruptcy Attorneys will do the best they can to provide you an answer in a timely manner.

How long with bankruptcy stay on my credit report?

10 years

Can I file for bankruptcy twice?

You can file for Chapter 13 bankruptcy protection more than once. You are also eligible to file for Chapter 7 bankruptcy protection if you have not received a Chapter 7 discharge within the past 8 years and if you have not received a Chapter 13 discharge within the past 6 years. You can only file and receive a Chapter 7 discharge once every 8 years. If you have filed a Chapter 7 which was dismissed without a discharge, sometimes you must wait 180 days to file a subsequent Chapter 7 bankruptcy.

If I file for bankruptcy, should my spouse file too?

If all of the debts are in one spouse's name, it would be beneficial for just the one with the majority of the debts to file. If there are joint debts, it is usually better for both parties to file. Otherwise, the creditor would just go after the person who did not file bankruptcy.

Will my student loans be eliminated through bankruptcy?

The general rule is that student loans are non-dischargeable through bankruptcy. However, the Bankruptcy Code provides that in some instances, you can sometimes ask the court for a hardship discharge of your student loans.

What happens at the meeting of the creditors?

The meeting of creditors is a scheduled meeting for all creditors listed in someone's bankruptcy to come ask questions of the debtor. Most creditors do not attend the meeting of creditors. The creditors that occasionally attend the meeting are usually those that have secured debts (i.e. houses or cars) and their questions usually center on trying to protect their collateral in case of a default by the debtor. For example, the holder of a car loan would want to know whether their vehicle has insurance coverage in the event of a wreck. This meeting of creditors is conducted by the Bankruptcy Trustee who also questions. Typically, the trustee will just question the debtor about his debts and assets. The trustee is trying to determine whether there are non-exempt assets, which could be subject to liquidation.

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