In the United States, for example, there is no minimum amount of debt required to file for bankruptcy. This means that even if you only have a small amount of debt, you can still file for bankruptcy if it is proving to be unmanageable.
Will I be able to buy a house or car after filing bankruptcy?
Auto loan lenders do not exclude those who have gone through bankruptcy although you may pay higher interest rates. However, buying a house may be a little more complicated. Some banks blacklist you for a few years before you can qualify again or they charge ridiculous fees or interest rates.
Will bankruptcy clear all my debts?
Bankruptcy can wipe out most non-priority unsecured debts other than school loans only if you qualify for Chapter 7 bankruptcy and pass the means test.
Will creditors stop calling me after filing for bankruptcy?
Yes, all creditors should stop calling after you file for bankruptcy due to an automatic stay. An automatic stay protects you from harassing phone calls, emails, and letters. If you are receiving phone calls from creditors, contact your bankruptcy attorney right away.
How much will bankruptcy hurt my credit report?
The exact effect of bankruptcy will vary depending on your current score and situation.
What is Bankruptcy?
Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan.