Picking up from Bankruptcy FAQs (Pt. 1), here are some additional questions that people commonly have when they are considering or preparing to file for bankruptcy. If you have questions not answered in this blog or are ready to receive for more specific info pertaining to your circumstances, you are encouraged to contact Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler.
Q – Will creditors stop harassing me after filing for bankruptcy?
A – Yes! This is one of the immediate benefits of filing for bankruptcy. Upon filing a bankruptcy petition, a court order (i.e., injunction) known as an automatic stay will take effect. This injunction prohibits creditors from calling you, sending you any more letters or otherwise contacting you about debt you may owe.
Additionally, the automatic stay will offer you further protection from creditors in that it will prevent your creditors from trying to seize your assets (by, for instance, garnishing your wages or repossessing your property). The reason for this is that, once you file for bankruptcy, your assets will become part of the bankruptcy estate to prevent any single creditor from taking all of your assets (which would leave any other creditors will nothing).
Q – Will bankruptcy wipe out all of my debt?
A – No. Bankruptcy will wipe out a lot of debt like:
- Credit card debt
- Car loan debt
- Mortgage debt
- Medical bill-related debt.
It will not, however, wipe out other debt, including (but not limited to):
- Court-ordered debt (like spousal support and child support obligations)
- Restitution-related debt (which is associated with criminal convictions)
- Student loan debt
- Some tax debt.
Q – If I file for bankruptcy, how will that affect my spouse?
A – In short, it depends. If you and your spouse own a lot of property or assets jointly and you file for bankruptcy, all of the property that you own together will be included in the bankruptcy estate (unless, of course, it qualifies as an exemption). There are a lot of factors to consider when one spouse files for bankruptcy and the other does not, and it’s best that these more complicated financial matters be entrusted to an experienced professional like Arthur Lindquist-Kleissler.
Look for the final part of this blog for some more bankruptcy FAQs and their answers.
Denver Bankruptcy Lawyer at Lindquist-Kleissler & Company, LLC
Are you buried in overwhelming debt or facing a serious financial crisis? If so, Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler is ready to help you evaluate your best options for resolving your financial issues.
Since 1979, Mr. Lindquist-Kleissler and the other legal professionals at Lindquist-Kleissler & Company, LLC have been providing both individuals and businesses with the highest quality of legal services when it comes to debt relief and bankruptcy. From simple to complex bankruptcy cases, Mr. Lindquist-Kleissler can always be trusted to:
- Maximize utilization of Colorado Bankruptcy Law
- Bring a fresh perspective to every client’s bankruptcy matters and to examine non-traditional options for their cases
- Guide his clients through bankruptcy
- Help them achieve the best possible outcomes to their cases.
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Contact us by calling (303) 691-9774, or email us using the form on this page to set up a free 30-minute initial consult. You will pay nothing up front to obtain trusted, professional advice regarding your case and your options.
From our office in Denver, Arthur Lindquist-Kleissler represents clients throughout the Great Denver Metropolitan area and Colorado, including (but not limited to) Aurora and Arapahoe County.