Bankruptcy FAQs
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Q. What happens to the credit cards that I do not have a balance on? For example, I have a store credit card that is currently open but I managed to pay the balance off. What happens to this card? Will it go on the bankruptcy and be closed like the other cards?
A. You don't need to list the ZERO balance card, but in almost all cases, the account will be closed after filing bankruptcy.
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Q. if I am an authorized user on someone else's credit card/account; will my filing bankruptcy affect them?
A. High possiblity—discuss this with Mr. Hixson.
Q. Will that credit card/account show up on my credit report?
A. Yes
Q. Will I still be an authorized user on that credit card/account after filing bankruptcy?
A. This is unknown and depends on the individual creditor's policies.
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Q. I've heard horror stories of after declaring bankruptcy some banks will actually close your personal checking with them. For example, I have credit cards with Chase Bank as well as a personal checking account, will chase decide to close my checking account because of the bankruptcy?
A. They may decide to close your account if you are declaring on their debt. I recommend opening an account now at another bank.
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Q. What is the likelyhood of them closing my cell account, they do a 6 month credit check.
A. In most cases (90%) they will not close an account in good standing.
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Q. Will my insurance premium go up because of filing bankruptcy?
A. They may go up if based on your credit score.
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Q. If I am going to keep my car, does this mean I list it but I still make the payments through out and after the bankruptcy process?
A. In Chapter 7, YES - On your secured debts - "If you want to keep it you have to pay for it". In Chapter 13 your car MAY be included in your Plan.
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Q. If I have a car that is paid for, do I list it in the bankruptcy?
A. Yes, you must list all of your assets in the bankrupcy.
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Q. How long does bankruptcy take?
A. Chapter 7 takes about four months to complete. Chapter 13 takes three to five years to complete depending on the extent of your debts and your income.
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