Common Questions about Bankruptcy
Understanding how the Protections under the U.S. Bankruptcy Code can Help You.
At Nicole Anderson Law in Forest Lake, Minnesota, we help people from all over the Twin Cities exercise their rights under the U.S. Bankruptcy Code. While people often think of bankruptcy as “losing everything” bankruptcy laws actually help people going through a difficult financial time protect what is most important to them. To help people who are considering bankruptcy make a good decision, we have a few questions and answers below. For help on your specific situation, please take advantage of a free initial consultation with one of our experienced bankruptcy lawyers.Can I keep My Car if I File Bankruptcy?
Yes, almost without exception. The two main types of bankruptcy, Chapter 7 and Chapter 13 treat automobiles slightly differently. However, as long as you are current on your car payments, you can keep your car. If you are NOT current on your car payments, the automatic stay will give you time to get caught up as the car will not be repossessed. There are a lot of variables when it comes to the value of the car and what is best for your specific situation. But to provide a short answer, you do not need to worry about losing your car.
Will I lose my Home if I file Bankruptcy?
In most cases, you will not lose your home. There are cases where people use bankruptcy to get away from a home where the mortgage far exceeds the actual value of the home. If you are several months behind on your mortgage payment, and the bank is looking at foreclosure or a sheriff sale, filling bankruptcy will stop that process. However, if the home is simply too much for you to afford, our lawyers can help you understand your options of how you can use bankruptcy to help you transition to what is next.
Will I lose my IRA, 401(k) Savings or other Retirement account if I file Bankruptcy?
Absolutely not. Your retirement savings is completely and totally safe. Even if you have a considerable amount saved up in your 401(k) or other retirement account, it is still safe. The only thing that makes that money unsafe is if you remove it from the retirement account or borrow against it. Do not make the mistake of tapping into your 401(k) to simply delay the inevitable. So long as you leave the money in your retirement account, your IRA or 401(k) is safe.
Will my Friends, Neighbors and Co-Workers Know if I file Bankruptcy?
For all practical purposes, bankruptcy is a completely private process. There is a public record of your bankruptcy hearing, but it is not something that many people would expect to see in their daily lives. There is also a court record with your name, but again, it’s not something that is widely circulated. Your creditors will be informed, as would anyone you co-signed on a loan with. But for most people, the only way anyone finds out you filed bankruptcy is if you tell them.
