Bankruptcy FAQs

Does Filing Bankruptcy Affect My Employment?

Bankruptcy petitions are public records; however, under normal circumstances, most employers will not know you filed a bankruptcy petition. The Bankruptcy Code prohibits employers from discriminating against you because you filed a bankruptcy petition or because you failed to pay a dischargeable debt.

Will Filing for Bankruptcy Affect My Credit Score?

For up to ten years after you initially file for bankruptcy, it will appear on your credit report. Negative marks on your credit report (foreclosures, late credit card payments, etc) can be removed seven years after you file for bankruptcy. You probably will not have to worry about this affecting your chances with lending agencies—most of them know that you will not be able to file bankruptcy again for up to six years, so they likely will not consider that a risk.

Can I Discharge Student Loans When I File for Bankruptcy?

Student loans that are insured or guaranteed by the government or nonprofit institution are generally not discharged in bankruptcy. Since the government backs most student loans, they generally are not discharged.

What is the Difference Between a Chapter 7 and a Chapter 13 Bankruptcy?

There are six different chapters of bankruptcy in the U.S.: Chapter 7, 9, 11, 12, 13, and 15. The two chapters that specifically concern individuals filing for bankruptcy are Chapter 13 and Chapter 7.

In a Chapter 7 bankruptcy, all assets are surrendered for liquidation and distribution, minus any exemptions. This means your property and personal assets are used to pay off your debts, with the exception of the property and assets you are qualified to keep. (See below for more on exemptions). For more information on a Chapter 7 bankruptcy, click here.

Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy allows you to keep your property and personal assets by creating a payment plan to pay off your debt over time with disposable income. In some cases, the debt amount is reduced to a more manageable total, which is eventually paid off in the payment arrangement. For more information on a Chapter 13 bankruptcy, click here.

What Are and How Do I Know if I Qualify for Bankruptcy Exemptions?

Exemptions are safeguards for values on certain assets. A bankruptcy exemption on your homestead, for example, can protect your home’s equity up to a certain point. States have different laws for determining value and for what assets qualify as exemptions. Check with a Lewisville bankruptcy attorney to find out how state laws may affect your property during bankruptcy.

Are All Debts Dischargeable in a Texas Bankruptcy Questions Case?

No. Congress has excluded many debts from discharge. Some of these include debts incurred by:

• Fraud or false pretenses
• False statement in writing (a false credit application, for example)
• Embezzlement or larceny
• Willful or malicious injuries

Additionally, you cannot discharge the following debts:

• Spousal or child support obligations
• Debts resulting from death or personal injury by debtor operating a motor vehicle while intoxicated
• Fines and restitution
• Income taxes within the last three years
• Government fines and penalties
• Student Loans (sometimes, these loans are dischargeable)

These are the main types excepted from discharge, although there are others.

Have More Bankruptcy Questions? Contact Our Experienced Lewisville Bankruptcy Attorney for Help about Bankruptcy Questions

Contact our bankruptcy attorneys to set up a free consultation regarding the likelihood of a successful Bankruptcy Questions. We can explain how to file bankruptcy in Texas, along with your options during a Chapter 13 or Chapter 7 bankruptcy. Our firm can also explain how to respond to a credit card lawsuit. We serve clients throughout the DFW Metroplex, including the nearby communities of Arlington, Fort Worth, Flower Mound, Denton, and Dallas. Call 972-315-6222 to schedule your free attorney review today. You can ask more Bankruptcy Questions if have.