QUESTION
How long is the recover period from a bankruptcy?
Asked on Mar 29th, 2012 on Bankruptcy - California
More details to this question:
I am wondering how bankruptcy works, with Student loans, and other bills i have on my credit. I also have a new car that payments are being made on, and am wondering if i would lose it. Also how long does the recovery period take?
11 ANSWERS
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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Student loans cannot be discharged in bankruptcy. However, credit cards and medical bills can be discharged. Additionally, if you wish to keep your vehicle you will need to continue making payments on it even after filing for bankruptcy.
Answered on Apr 04th, 2012 at 10:42 AM
Daniel James Wilson
You can probably keep the car if you make payments. Student loans are not dischargeable. You can rebuild your credit by establishing post-petition history of debt payment.
Answered on Apr 03rd, 2012 at 2:04 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Unfortunately, student loans are not dischargeable. No, you would NOT lose your car. The recovery period is up to you, but making your car payments on time & paying a little more than the minimum will help. I've read that one could sufficiently recover to purchase a home in about 2 years.
Answered on Apr 02nd, 2012 at 1:53 PM
There is no such thing as a recovery period. You can take many different actions to restore and rebuild your credit directly after bankruptcy.
Answered on Apr 02nd, 2012 at 10:59 AM
You cannot discharge student loans in bankruptcy. You also cannot discharge certain other loans, such as tax debt owed to the IRS, child support, or debts that have been reduced to a judgment. You would be able to keep your car as long as you can afford to continue to pay the car payment. Your credit could be affected for up to 6-7 years, but I have seen people who have been able to recover sooner.
Answered on Apr 02nd, 2012 at 10:56 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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You would not be discharging the student loans. The recover period in terms of building credit depends on what you are trying to do and on your circumstances. But if you need to file bankruptcy and cannot pay your debt, you should get better credit quicker with a bankruptcy. You can continue to make payments and keep your car, though if you have too much equity the bankruptcy trustee would have a claim on your car.
Answered on Apr 02nd, 2012 at 9:50 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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How much more you are going to make in the future is a more important question as that has more to do with recovery than filing bankruptcy.
Answered on Apr 02nd, 2012 at 8:41 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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2-4 years usually.
Answered on Apr 02nd, 2012 at 8:31 AM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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Credit worthiness post bankruptcy is a function of income and any credit references. If you retain your car and reaffirm the debt and make scheduled payments that creditor is a reference. I would contact an attorney to discuss.
Answered on Mar 30th, 2012 at 3:43 PM
Your credit report should continue to report that you are continuing to pay on both your car loan and your student loans. Generally speaking, it takes about 2 years to re-establish credit to the point where a more reasonable interest rate is being offered. Bankruptcies can be reported "up to 10 years."
Answered on Mar 30th, 2012 at 3:29 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Bankruptcy law is complicated to explain so a face to face consultation with an attorney who has substantial experience is necessary. Student loans are not dischargeable unless you have a permanent disability that precludes you from ever being able to pay the loans and you have tried all the deferments programs available first. Generally you can keep the car if you can pay for it assuming it is not a vehicle so expensive that it might be considered an unnecessary luxury. I don't know what you mean by recovery period but most Chapter 7 cases are over in three months and a Chapter 13 require that you be in a plan that may be three to five years long and you cannot use credit without the trustee's permission during the plan period. You can recover your credit after a Chapter 7 in two or three years although it will show in your credit report for 10 years and will have an effect on the credit score.
Answered on Mar 30th, 2012 at 3:21 PM