Your Bankruptcy Questions Answered
Do you have questions about bankruptcy? At the Law Offices of K. Hunter Goff, P.A., I can provide you with the answers you need. For more than 20 years, I have been helping people achieve debt relief in Orlando and throughout surrounding Florida communities. On this page, I will provide answers to some of the most frequently asked questions about bankruptcy.
Can all debts be discharged through bankruptcy?
Bankruptcy discharges most types of debt but not all. Types of debt bankruptcy that do not discharge include student loans, child support and alimony arrears and newer Internal Revenue Service (IRS) debt. Even if you cannot discharge these debts through bankruptcy, filing for bankruptcy can help you stop collection actions and improve your overall financial situation, making it easier to eventually pay off those debts.
Will bankruptcy ruin my credit for life?
No, bankruptcy will not ruin your credit for life. Filing for bankruptcy will have a temporary negative impact on your credit, but you can build it back up over time by making wise financial decisions. In most cases, people who file for bankruptcy have low credit scores to begin with due to defaulted debts and other problems. Bankruptcy can be the first step to building that credit back up.
Can I Be Arrested For Not Paying My Debts?
There are no debtor’s prisons in the U.S. In fact, creditors may not even threaten you with arrest or any type of criminal penalties in their attempts to collect a debt. If they do so, it is a violation of Florida and federal laws.
Will I lose my retirement account if I file for bankruptcy?
Qualified retirement accounts such as 401(k)s and IRAs are exempt from being seized in a bankruptcy up to a certain amount (around $1 million).