Should I File for Bankruptcy FAQ

Questions:

• Will all of my debts be canceled in bankruptcy?
• If I file for bankruptcy, can I keep my property?
• I'm facing foreclosure and want to keep my home. Is bankruptcy my best option?
• I'm in over my head with debt, and I just lost my job. Should I file for Chapter 7 bankruptcy?
• Debt collectors won't leave me alone! Will bankruptcy stop the harassment?

Answer:

I'm in over my head with debt, and I just lost my job. Should I file for Chapter 7 bankruptcy?

If you think you'll incur significant debts in the near future, it might make sense to wait to file for Chapter 7 bankruptcy. Although your current debts (with some exceptions) will be discharged in your bankruptcy, debts incurred after you file for bankruptcy won't be. Because you can't file for bankruptcy for eight years after the filing date in a previous Chapter 7 discharge, you'll be on the hook for those debts for a long time. To learn about other situations in which it makes sense to delay your bankruptcy filing, see Nolo's article Should I File Bankruptcy Now or Wait?