Bankruptcy FAQ

Questions about Bankruptcy?

Our Naperville Bankruptcy Lawyers Answer

Picture of a frustrated man
At the Naperville Law Offices of Schneider and Stone, we understand that filing for bankruptcy can be very intimidating.  People often see bankruptcy as submitting to financial ruin for the rest of their lives.  Thankfully, this is simply not accurate.  With an experienced Naperville bankruptcy attorney on your side, bankruptcy can be just the second chance you need.  Our experienced bankruptcy lawyers have compiled some of the most common questions we receive from people considering filing a bankruptcy claim.  If you have any other questions or you want to know more about your unique bankruptcy options, contact a Naperville bankruptcy lawyer from our firm today to set up a free consultation.

Q: What will filing for bankruptcy do to my credit score?

A: Many people fear that their credit score will go down if they file for bankruptcy.  This is not true.  In many cases, filing for Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, or Chapter 13 Bankruptcy will actually improve your credit score.  Most people who are considering filing for bankruptcy have missed a mortgage payment or car payment, and creditors have judgments against you.  Your home may even be in foreclosure.  This can severely reduce your credit score.  What you must realize is that your credit score is simply a reflection of your credit worthiness.  Having outstanding debts is the single largest red flag to creditors.  By filing for bankruptcy, you can wipe your financial slate clean and end up virtually without debt.  Most of our clients see their credit scores increase by thirty points or more after filing for bankruptcy.

Q: Can I keep my property when I file for bankruptcy?

A: In almost all cases, yes.  Many people can keep their assets even when filing for Chapter 7 Bankruptcy.  When that is not the case, our attorneys will help you develop a Chapter 13 Bankruptcy plan that will let you keep your home, your car, and the rest of your property.  In many situations, people filing for Chapter 7 Bankruptcy can reaffirm their secured debts in order to keep their home and car, even if you have missed payments in the past.  In fact, filing for bankruptcy may be the only way you can keep these assets.  The most important thing to keep in mind is that outstanding debts are the source of almost all your credit problems.  Filing for bankruptcy absolves you of your outstanding debts, thereby eliminating many of the problems that come with those debts.

Q: Will I lose my job if I file for bankruptcy?

A: Absolutely not.  Bankruptcy laws forbid employers from discriminating against an employee who is filing for bankruptcy.  Furthermore, your employer will likely never know you have filed for bankruptcy.  Your creditors are the only parties that need to know about your bankruptcy plans.

Q: Can you keep creditors from hassling me about my debts?

A: Yes.  Whenever you file for bankruptcy, your creditors must cease all debt collection activities.  The law requires creditors to stop calling your home and halt foreclosure home sales.

If you have any questions about your financial options, contact our attorneys today.  We will meet with you for free and talk about building the right bankruptcy plan for you.

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