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Bankruptcy Myths Uncovered

February 14, 2010 By admin Leave a Comment


Bankruptcy can be useful for certain consumer, yet many don't file because of the myths associated with this option. For some, it really is the best choice for their situation. There are many myths associated with bankruptcy. It can often be hard to tell fact from fiction.

Myth 1: Everyone will know

Most people believe that the entire world will know that they have filed for bankruptcy. This isn't exactly true. Yes, it is part of your public record. However, it is unlikely that anyone other than your creditors will be aware that you have filed for bankruptcy. Only those that you tell will know about your financial situation.

Myth 2: I'll lose everything

You won't necessarily lose everything you own if you file bankruptcy. In fact, it can help you to keep your home, your car and your qualified retirement plans. You simply have to keep making the payments on your house and car and make up the missed payments. Both Chapter 7 and Chapter 13 alow consumers to keep certain assets. The goal is to work things out between both you and your creditors.

Myth 3: I'll never be able to buy anything again

Yes, bankruptcy is hard on your credit. but you will probably get plenty of offers for credit right away. Most offers will be secured cards or from subprime lenders. You will pay extremely high interest rates for your credit, but you can find it. While you shouldn't put on new credit right away, re-establishing your credit history is something that you will need to work on. Having a loan and paying it in full can help you increase your credit score.

Myth 4: It is hard to file for bankruptcy

Anyone can file for bankruptcy. Yes, there is now a means test for Chapter 7, but if you don't qualify you can file for a Chapter 13. Although the process is complicated, it is that way to protect you. The easiest way to file is to have a good bankruptcy attorney to guide you through the process.

Myth 5: You can only file once

You can file for bankruptcy more than one time. However, there are waiting periods between filings. You can only file for Chapter 7 bankruptcy once every eight years. You can file a Chapter 13 once every two years. If you file a Chapter 7 and want to file a Chapter 13, you must wait four years. Multiple bankruptcies aren't recommended. If you find yourself in another bankruptcy situation, you need to seek professional help in managing your debt and your money. What you are doing now isn't working.

Myth 6: The only reason to file is to get out from under the responsibility

Many people assume that only deadbeats file for bankruptcy. Let me tell you, this is simply not true. There are many reasons for bankruptcy. The main cause is medical bills, followed by job loss and divorce. Many people struggle for a long time, but just aren't able to get things back under control. Bankruptcy isn't a bad thing. It is a way to start over and get it right.

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Declaring Personal Bankruptcy – Dispelling Common Myths

February 14, 2010 By admin Leave a Comment


Credit card companies are hot on their marketing and have often been accused of offering credit irresponsibly. For example, they offer cards on college campuses to those who are only just legally old enough to even have credit and thus have no experience or knowledge of credit cards of their associated costs.

But credit cards have transition somewhat from emergency cash substitutes to much more of the normal thing and as a result, there are more people than ever living outside their means. Credit means that people are able to buy something that they cannot really afford.

It is little wonder then that so many people are declaring personal bankruptcy. What starts off a small credit card purchase can spiral out of control with high interest rates and costs that consumers never considered.

With this type of irresponsible lending, an increase in those declaring personal bankruptcy is almost to be expected. But can we just blame the creditors? At some point, people have to account for their own actions and take some responsibility for their own spending. After all, nobody forces you to take a credit card. But aggressive advertising of credit services does contribute to the number declaring bankruptcy, that is for sure.

Contrary to what seems like a popular opinion, it is not all deadbeats and wasters who are declaring personal bankruptcy. In fact, such people are unlikely even to be approved. They are often just people whose finances have spiralled out of control and who can no longer keep up their payments. And while credit card companies and banks should shoulder some of the blame, we really do, as a society, have to take responsibility for our own actions and our own spending as well. Otherwise this cycle will not end.

Get the right information on Declaring Personal Bankruptcy before you make that important decision. To get the facts on bankruptcy, simply Click Here

Find out more about declaring personal bankruptcy and what are the considerations you should take note of.

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Common Bankruptcy Myths Debunked

February 11, 2010 By admin Leave a Comment

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Myths about filing bankruptcy in Los Angeles

February 9, 2010 By admin Leave a Comment

If you are considering bankruptcy, but have serious misgivings that are preventing you from making a decision to proceed, prepare to be enlightened. Here is a list of the top five big bankruptcy myths.

Myth #1 - Everyone will know I've filed for bankruptcy.

Don't be offended, but almost nobody will know (or care) that you have filed for bankruptcy. Unless you're a big shot in your town or someone the media likes to highlight from time to time, it is very unlikely that anyone other than your creditors and perhaps a few close friends and family members will know you have filed.

Yes it is true that bankruptcy is a public legal proceeding, but the fact is there is no single place that you can find an up-to-date list of people who have recently filed for bankruptcy. The number of people filing for bankruptcy is so high that very few publications have the manpower or motivation to assemble and update this information.

Myth #2 - When you file a Chapter 7 bankruptcy all your debts are wiped out.

This is simply not true. Certain types of debts such as child support, alimony, government-issued or government-guaranteed student loans, and debts incurred as the result of fraud will not be forgiven. Also most judges will not discharge legal judgement amounts you've been assessed as the result of someone suing you.

Myth #3 - Everything I own will be taken away from me.

This is a major misconception that frightens many people from filing bankruptcy. They assume they will be thrown out on the street with no house, no car and no money in the bank. But this is not the case. If it was, almost nobody would file for bankruptcy.

Actual bankruptcy laws vary from state to state, but every state has exemptions that protect certain kinds of assets. These include your house, your car (up to a certain value), household goods and clothing and money in qualified retirement plans. In many cases a person will pass right through bankruptcy and essentially keep everything they have. That includes their mortgage and car loans as long as they keep on making the regular payments.

Myth #4 - I'll never get credit again.

Believe it or not, it won't be long before those eager beaver credit card companies will be sending you offers again. In fact there are companies that target high risk borrowers and people who've had credit problems. They charge exorbitant interest rates but that is the price you pay for needing credit in such circumstances.

For this very reason most people are advised not to start running up bills again, and should most certainly stay away from acquiring a number of high interest rate credit cards. While it is true that most people who need a car loan will be able to find someone prepared to give them one, the rate will be very high. That is why it is best if you are thinking of buying a house or car to get these set up before you file and while your credit score still looks presentable.

After bankruptcy, those loans will be tough to get and the higher interest rate will have a significant effect on your payments. Also, if you have a credit card with a zero balance on the day you file for bankruptcy

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Common Bankruptcy Myths

February 8, 2010 By admin Leave a Comment

There is a lot of false information regarding bankruptcy.  Here is a list of the most common myths we

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