There is a lot of false information regarding bankruptcy. Here is a list of the most common myths we
Correcting the Common Misconceptions About Filing Bankruptcy
February 6, 2010 By Leave a Comment
While no one wants to find themselves contemplating bankruptcy, sometimes factors beyond our control make it seem unavoidable. However, there are actually several options other than filing for bankruptcy. Bankruptcy is a huge, drastic step, and should only be considered as the last option. You should first investigate all your other options thoroughly.
Remember that if bankruptcy turns out to be the best or only option available to you, you still shouldn’t go it alone. It doesn’t matter whether it’s personal bankruptcy or business bankruptcy. The counsel of a good bankruptcy lawyer is vital to understanding the laws in your state, since the bankruptcy laws are different from state to state. This person will be familiar with the process of filing a claim and will be able to help you get through the sometimes bewildering heaps of paperwork involved.
Many people assume false things about bankruptcy. Here are some common misconceptions about the process, and the real truth.
Misconception #1: When you file for bankruptcy, you’ll lose everything
There are actually several different types of bankruptcy. A qualified lawyer can help you understand the difference between them. Depending on how you choose to file, you may not lose anything at all. Many people who file for bankruptcy are actually able to retain all their property, and even get caught up on their overdue payments. Bankruptcy is a way to help you deal with your debts when it becomes impossible to do anything else. Learn about your different options and choose the one that works best for you. You may be able to retain everything you own.
Misconception #2: My bankruptcy will become public knowledge
While bankruptcy is a matter of public record, no one goes looking for these records. Therefore, the only people who’ll know about your bankruptcy are the people you choose to tell. Only your creditors will know, unless you choose to tell someone else. Your creditors are prohibited from telling anyone else. This makes your bankruptcy as public or private a matter as you choose.
Misconception #3: I won’t be able to get credit ever again
Some people think that from the moment they file bankruptcy, all purchases are cash only. This isn’t true. Filing will put a mark on your credit report that stays for seven to ten years, it’s true. However, you’ll probably find yourself inundated with secure credit card offers, and other offers to help you get your credit score back up. Be careful with them, though. They charge very high interest rates and penalties. Careful use of these kinds of offers can help get you back on your feet, credit-wise, as long as you don’t get carried away.
Misconception #4: Filing for bankruptcy is very difficult or even impossible
While recent changes to the laws have made it a lot more difficult to file for bankruptcy than it used to be, that doesn’t mean you can’t do it. It’s a tedious and difficult process, and a knowledgeable lawyer certainly helps. However, if you’re educated and know your options, filing for bankruptcy doesn’t have to be a horrible experience. Remember that the more you know, the more power you have over your situation. The recent laws are in place to prevent abuse, but they don’t prevent people with legitimate needs to file bankruptcy from doing so. Consult with your lawyer about any concerns you may have.
To get more insights and additional information about Filing Bankruptcy or for tips on getting Credit After Bankruptcy please visit our web site at http://www.bankruptcy-data.com
Common Answers to How Much Does It Cost to Declare Bankruptcy
February 6, 2010 By Leave a Comment
You may be considering bankruptcy as a way to solve your debt problems. This is certainly an option that you should consider if you’re facing an overwhelming amount of debt and don’t see any other way out. Of course, you should speak to a lawyer and not rush into things prematurely. However, if you decide to go this route, you may be wondering how much does it cost to declare bankruptcy.
You have to pay the court a fee of $274 when filing chapter seven bankruptcy, while the fee for chapter 13 bankruptcy is $189. Chapter seven bankruptcy, by the way, is what most people are looking for since it aims to wipe out your debts completely. Chapter 13 bankruptcy, on the other hand, establishes a repayment plan for you to pay off your debts over time.
At first glance, this doesn’t seem like a very large amount to pay in order to get a fresh start financially. Of course, if you’re looking to declare personal bankruptcy, then any expense is going to be significant for you. Still, the above fees are not outrageous considering what you’re getting in return, which is a second chance in your financial life.
When it comes to paying for your bankruptcy proceedings, the problem may not lie so much with the court fees. After all, the main fees you’ll have to worry about are your lawyer fees. As we all know, legal fees can be expensive, and the recent changes in the bankruptcy code have made things more complex. This may mean more work for your attorneys, which can translate into a higher cost for you.
This may be discouraging for you, and you may think that you will not be able to pay for the bankruptcy process. At this point you might be wondering how to get out of credit card debt (or other kinds of debt for that matter) through some other means. However, if you and your lawyer have decided the bankruptcy is the best option for you, you shouldn’t despair over the cost.
The first thing you should remember is that filing for bankruptcy will automatically put your debts on hold, and your creditors will not be able to contact you until your case is finalized. If you were successful in wiping out your debts, you won’t have to worry about these anymore. Getting rid of these other debts should clear up enough funds for you to pay your lawyer fees (especially if you work out a payment plan with your attorney).
Don’t let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about the how much does it cost to declare bankruptcy visit us at http://personalbankruptcyquestions.org
Common Effects of Declaring Bankruptcy
February 6, 2010 By Leave a Comment
Many consider bankruptcy to be a terrible option which should never be used except in the most drastic of circumstances. Others see it as an opportunity to begin again by wiping out past debts, and they may see bankruptcy as an option which should be considered sooner rather than later. Whatever the case may be, it’s true that bankruptcy is a legal and legitimate way to deal with excessive debt that is beyond your ability to pay.
Nevertheless, bankruptcy should not be taken lightly as it will have long-term effects on your financial life. It may be a good option for your situation, but this requires careful consideration of all of your options and sitting down with a professional (like a bankruptcy lawyer). Still, you may be wondering about one important question: what are the negative effects of declaring bankruptcy?
Well, it has been said that declaring chapter 7 bankruptcy (which seeks to eliminate most or all of your debts) is the ultimate admission of financial defeat. As such, it will stay on your record for about 10 years and thus seriously damage your credit rating. This will make it more difficult to obtain a loan for a car or house (or for anything else for that matter).
It is not impossible, however, to obtain credit after declaring bankruptcy, but you’ll probably end up paying a much higher interest rate as a result. You should also realize that your credit can improve over time if you work on improving your financial habits. If you take bankruptcy as a fresh start, you can use your second chance to build a much better financial future. This is a serious matter, but you should know that there truly is life after bankruptcy if you have the patience and discipline to rebuild your credit.
Another possibility that you may not have considered is that innocent creditors will be hurt as a result of your filing bankruptcy. This is particularly sad when you’re dealing with small businesses who extend you credit and may be hit hard if their loans are not repaid. This should be taken into consideration, but ultimately you have to do what is best for you and your family.
There are many alternatives to bankruptcy that you should seriously consider, as it is always best to fulfill your obligations and pay your debts off. However, if you, with the help of a financial adviser and attorney, determine that it is the only option for you, rest assured that there is life after bankruptcy.
Don’t let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about the effects of declaring bankruptcy visit us at http://personalbankruptcyquestions.org