CHAPTER 7 - BANKRUPTCY - FAQS
1. Can I keep some of my credit cards after I file bankruptcy?
No, filing Bankruptcy, no matter what chapter, affects all of your credit cards, even if they're in
good standing with the creditor. Usually, upon filing the card is closed by the creditor.
2. How long will filing Bankruptcy affect my credit rating?
A bankruptcy can stay on your credit report for several years but that does not mean that it will take that long for you to repair your credit rating.
There are several publications available online for as little as $10.00 that give you the step by step process on how
to rebuild your credit rating after you receive a discharge in a chapter 7 bankruptcy. Typically, it can take 18 months to 2 years to build a credit score in the
600's with the credit reporting agencies. Be advised that each individual's circumstance is unique.
3. How long does the Chapter 7 Bankruptcy take from beginning to end?
Although each Chapter 7 Bankruptcy is unique, on average, a "no asset" Chapter 7 Bankruptcy can take about 4 months from the initiation of the case until you
receive a discharge.
4. What are the requirements for filing a Chapter 7 Bankruptcy?
a. In order to file a Chapter 7 bankruptcy an individual must first take a credit counseling course with an approved agency within 180 days of filing.
b. An individual must earn less than the median income for their household size in the county in which they live. For example the median income for a
single person household in Pennsylvania, according to the current bankruptcy law, is $65,757.00 (this amount changes from time to time).
5. Will I be able to keep my car?
Yes. In most cases you can keep your car.
6. Will I have to sell my house?
Depending on the amount of equity you have in your home, you may be able to keep your home by using the exemptions that the Bankruptcy law provides you.
(Please note that each bankruptcy case is different and several factors must be taken into account when making this determination).