FAQs on Bankruptcy
and Loans

This is a very common question. Bankruptcy will remain on your credit report for seven to 10 years. However, this does not mean that you must wait seven to 10 years after filing bankruptcy to obtain credit. Plus, typically the filing will drop off your credit report after seven (7) years because the credit reporting agencies do this if the creditor does not re-report. The bankruptcy court historically does not re-report. Depending on your employment, your income and your ability to repay, you may be offered credit by some auto loan companies and credit card companies shortly after your bankruptcy is discharged (typically three to five months after filing bankruptcy). In addition, many people are able to obtain mortgages within (2) two to (3) three years after their bankruptcy discharge.

You will probably find that debt consolidation will do very little to improve your credit. Many people try for years to repay their debt through debt consolidation and end up making little or no progress in reducing their debt or repairing their credit. In addition, during the time (usually over a period of several years) that you are making payments to a debt consolidation company, your credit report will still reflect that you owe money to your creditors. Plus, you have lost valuable time that could have been better spent starting and finishing a bankruptcy.

Filing for bankruptcy automatically protects your vehicle. Many individuals file for bankruptcy to avoid losing their vehicle. Many are surprised to learn they may also be able to re-write their car loan down the fair market value by filing bankruptcy. Re-writing the car loan reduces the principal balance, interest rate and monthly payment. Contact our office for more information about this.

No, it is not too late. Filing bankruptcy (Chapter 7 or Chapter 13) immediately stops all collection activities including wage garnishment. Contact one of our Columbus, Ohio, law offices immediately if you believe that your wages will soon be garnished or even if they have already been garnished.

There may be. You should immediately call our office and schedule an appointment for a consultation with an attorney. This appointment will not cost you anything, and the attorney will be able to look at your situation and recommend a course of action. For your convenience, you can come in for a free consultation Monday through Saturday.

Federal law prohibits an employer from discriminating against you because you filed bankruptcy.

Without evaluating your individual case, it is difficult to quote an exact fee because the fees vary depending upon the complexity of the case. During your free consultation in any one of our Columbus, Ohio, area offices, the attorney will evaluate your case and will then be able to tell you the fees for your bankruptcy case. We almost always offer reasonable payment plans.

When you file for bankruptcy, your creditors will be notified by the court. Under federal bankruptcy law, creditors must stop calling you and sending you collection letters after they are notified of the bankruptcy filing. If you are contacted by a creditor after you have filed for bankruptcy, you should refer the creditor to your bankruptcy attorney. Most people are surprised at how quickly the creditors stop calling.