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If you hear phrases like “consolidate your bills into one monthly pay- ment without borrowing,” “keep your property,” and “wipe out your debts using the protection and assistance provided by federal law,” BEWARE! You’ll find out, maybe when it’s too late, that such promises often involve filing for bankruptcy, which not only hurts your credit but also costs you money in legal fees.
Companies, some of them very large companies, try to appeal to con- sumers who have poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insur- ance, or even a job. These are empty promises. The truth is, only time, a conscious effort, and a personal debt repayment plan like the one you have worked out with FFEF will eliminate your financial woes.
What Else Should I Know about Bankruptcy?
• Utility services—Public utilities, such as the electric company, can not refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills which arise after bankruptcy is filed.
• Discrimination—An employer or government agency cannot discriminate against you because you have filed for bankruptcy.
• Driver’s license—If you lost your license solely because you couldn’t pay court-ordered damages caused in an accident, bankruptcy will allow you to get your license back.
• Co-signers—If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.
If you file a Chapter 13, you may be able to protect co-signers, depending upon the terms of your Chapter 13 plan.
• Discharge—You will receive your Order of Discharge officially can- celling your debts about four months after your meeting of creditors.
• Spouse—Your spouse’s assets are not included in your bank- ruptcy unless you file together. Likewise, your discharge will
not cancel your spouse’s debts. A married couple may file a joint petition but are not required to.
Things You Should Know About Bankruptcy