When you file bankruptcy, creditors are prevented from pursuing you in court or attempting to recover the debt. The stay stops any potential proceedings.
If you’re being sued by an entity for failure to pay credit card debt, they will no longer be able to continue with the lawsuit.
Will Filing A Bankruptcy Stop Creditors From Calling Me?
Creditors will stop calling you after you file for bankruptcy. Once you file your petition, you notify your creditor that you’ve filed for bankruptcy, and they should not contact you again.
If a creditor contacts you after you file for bankruptcy, our advice to clients is to tell them you’ve filed bankruptcy and give them our firm’s phone number. We will handle them for you.
Can I Buy A House Or A Car While I Am In A Bankruptcy? What About After I’ve Completed My Bankruptcy?
If you want to incur debt while in bankruptcy, you’ll have to get the court’s permission. A motion can be filed with the court. In Chapter 7 bankruptcy, this is not common because bankruptcy only lasts 90 days. Generally, given the term of a Chapter 7, it is not an issue because a Chapter 7 usually lasts only 90 days.
In Chapter 13 bankruptcy, if your existing car is no longer usable and you wish to purchase a new car you must find someone willing to loan you the money, with the court’s permission. After bankruptcy is discharged, you can buy a vehicle. The interest rate may be significantly higher after bankruptcy because of the potential risk. The closer you are to your bankruptcy, the higher your interest rate will be.
Does My Spouse Have To File Bankruptcy With Me Or Can I File Bankruptcy On My Own?
If the debt is entirely in the name of one spouse, the other spouse does not have to participate in the bankruptcy. However, in a bankruptcy petition, you must include all of the household’s income. So, your spouse’s income is considered in calculating the means test.
You have to report a spouse’s income but a spouse does not have to participate in the bankruptcy.
How Fast Can You File A Bankruptcy For Me In The Texas Southern District?
An emergency filing can be done within a day. However, there is a requirement in bankruptcy law that requires you to take 2 classes. The first class is called the credit counseling class and must be taken prior to the filing of the petition. The certificate of completion from the first class is not difficult to get and you can get it in one day. There are hundreds of entities that give these classes online or over the phone and at a minimal cost. Once you get that certificate, your bankruptcy can be filed as an emergency filing almost immediately.
Then you have 14 days after that filing to complete all of your schedules and provide all the information required. You take the second class, the financial education class, after the case has been filed and you know what your case number is.
For more information on Automatic Stay In A Texas Bankruptcy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (832) 400-4384 today.