Utility companies cannot discontinue service or refuse to provide you services because of a bankruptcy. They can, however, require to you pay a reasonable deposit. This is normally construed as an amount twice the amount of your average monthly bill.
You may not be discriminated against in obtaining future student loans on the grounds that you filed bankruptcy or failed to pay a student loan that is discharged in bankruptcy.
Does Chapter 13 bankruptcy look better on my credit record since I am paying my creditors back?
No. Chapter 13 does not look better on your credit record than a Chapter 7 bankruptcy. There are a number of reasons for this:
In Chapter 13 bankruptcy, you are actually in bankruptcy for 3 to 5 years. This means that the point at which you are allowed to begin re-establishing credit is postponed for 3 to 5 years since you are not allowed to incur new debt in a Chapter 13 bankruptcy.
Creditors tend not to be sophisticated enough to distinguish between a bankruptcy that repays creditors (Chapter 13) and one that does not (Chapter 7). Creditors do not give special credit for repaying debts in a Chapter 13 bankruptcy.
If the Chapter 13 bankruptcy fails, all debts continue to be owed less the amounts paid into the plan. Creditors will use the amounts still owed against you when attempting to establish new credit.
What are your fees for Chapter 13 bankruptcy and how are the fees paid?
The fees for a Chapter 13 bankruptcy are as follows:
$185.00 filing fee that goes directly to the court
$1,000.00 attorney fee
Payment of filing fees and attorney fees in chapter 13 bankruptcies is handled on a case-by-case basis.
How do I start the process of filing with Debt Relief Center, P.C.?
Set an appointment to come into any of our three locations to meet with an attorney to discuss your debt-related problems. You will have the opportunity at that time to formally retain the attorney or you can wait and do so at a later date.
What should I do to prepare for filing Chapter 13 bankruptcy?
First, you should consult with an attorney. An attorney can help you plan for the bankruptcy and decide when to file a bankruptcy petition. Additionally,
You should stop using your credit cards. If you borrow money with the specific intent of discharging the debt in bankruptcy rather than repaying it, the debt is not dischargeable. For example, certain luxury purchases over $1,000 made within 60 days of the bankruptcy filing are not dischargeable. Cash advances aggregating $1,000 made within 60 days of the bankruptcy filing are not dischargeable. Debts involving materially false financial statements are not dischargeable.
You should not transfer your assets to friends, family, or business associates to protect the assets from your creditors. The transfer may be considered a fraudulent conveyance. If it is, you may lose both the property and your right to a bankruptcy discharge.
You should not destroy any business or financial records. If you do, you can lose your right to a bankruptcy discharge.
You should carefully choose the creditors you do pay. Some creditors (for example, landlords, secured creditors, and some utilities) should be paid under most circumstances. Conversely, if you pay a credit card debt that will eventually be discharged, you may be throwing money away. Your attorney will advise you on which creditors to pay.
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