Expert: Mark J. Markus- California Bankruptcy Attorney - 3/29/2004

Question
I am (unfortunately) seriously considering filing Chapter 7 bankruptcy. Thanks to an ex-husband that deserted me (left me with all household bills), three car accidents (caused by un-insured motorists), legal bills, taking a loss on my house, etc. I have been battling unsecured debt for the past 10 years and am getting nowhere. None of my bills are presently past due -- I have basically sold all of my assets (condo included) to help to pay them down), but even after all of this, it has only managed to put a dent in the total amount and I just feel hopelessly burdened.

I have a few questions that I'm hoping you can answer.

What happens to the credit cards that have no balance on them when I file for bankruptcy. Do those get mentioned in my list of creditors? Are those accounts closed out, also?

Once I visit a lawyer, does my paperwork get filed right away (or how long after meeting with a lawyer does my bankruptcy paperwork get filed?)

I have a 1996 automobile that is going to need to be replaced soon. How long after filing bankruptcy will I be able to get a car loan?

Once I file for bankruptcy, do I still need to pay on my credit accounts until the bankruptcy is discharged?

Also, I understand that bankruptcy is a public record. Is there anything I could do so that my name does not appear in the local paper? As far as I am concerned, this is an embarrassing "chapter" of my life and I live in a small town. I just prefer not to have my neighbors and co-workers in my private business. Can I file through a different "district" other than the one in which I live? Will my employer have to be informed of my bankruptcy?

Thanks so much for your help...

Margaret  

Answer
1.  No, a creditor is someone you owe money to, so you don't need to list credit cards with zero balances.  Whether or not such a creditor will close your account after you file bankruptcy is up to them.  Most do close the account.  I'm not sure why this would matter.  Getting new credit cards after you file bankruptcy is about as difficult as finding sand on the beach.

2.  Depends on the lawyer you use, how long it takes you to pay him, and how completely and accurately you fill out all the preliminary paperwork.  Different lawyers have different turnaround times.  It's usually a few weeks.

3.  That's an impossible question to answer.  It depends on your income and other factors at that time.  You can probably get one immediately after, but you'll be paying a higher interest rate.

4. No.  You probably don't even need to pay them now.

5.  No, there is no way to avoid the public record.  Your employer will not be informed by the bankruptcy court.