As one of only a few Bryan/College Station bankruptcy attorneys, people are always comforted to be able to ask experts about the bankruptcy process. In fact, the more you know about the bankruptcy process the better prepared you are for the road to financial freedom it can provide. Here are some additional questions about bankruptcy:
What if I can’t afford to file? The fees for filing for bankruptcy are $306 for Chapter 7 and $281 for a Chapter 13. This fee is typically due at the time of filing your petition, but the court does offer a grace period of 120 days for those who cannot afford to pay in full at the time of filing. There is also a waiver program that could allow for you to be exempt from paying this fee.
Will my employer find out? Generally, no. There is no publishing of filing information other than with the court records. Your employer isn’t likely to find out about your bankruptcy filing unless they need to check your credit report, or you were already under a garnishment order that is now halted by the bankruptcy filing. In either case, there are laws to prevent you from discrimination solely based on your bankruptcy filing.
Are my funds at risk? There are exemption laws that protect much of your fund accounts. Unemployment, disability or survivor benefits are not eligible for liquidation in a bankruptcy, and will be protected. Retirement funds and insurance policies are also typically exempt and protected during your bankruptcy case.
Will my credit be ruined? Bankruptcy does not damage your credit. Missed payments and high debt balances are the cause of bad credit. Once these two issues are removed as a result of your debt discharge in bankruptcy, you are likely to see an improvement in your credit score.