There are many myths about filing bankruptcy that are spread by your creditors to keep you from choosing that option. Below are the top 16 myths about filing bankruptcy—AND the actual FACTS.
Bankruptcy Myth 1: Bankruptcy Doesn’t Really Get Rid Of Debt. Sooner Or Later, You Still Have To Pay It All Back. Right?
FACT:
Bankruptcy lets you get rid of certain debts without paying for them…without
EVER having to pay for them.
When bankruptcy gets rid of debts… those debts are gone… FOREVER.
Getting rid of certain debts without you having to pay them back is simply how bankruptcy works.
Bankruptcy Myth 2: Everyone Will Know You Have Filed For Bankruptcy.
FACT:
Unless you’re famous, chances are the only people who will know about a filing
are your creditors and the people you tell.
While it’s true that your bankruptcy is a matter of public record, unless someone
is specifically trying to track down information on you, there is almost no chance
that anyone will even know you filed.
Bankruptcy Myth 3: Won’t I Lose Everything I Have?
FACT: Most Chapter 7 filers don’t lose anything.
There are laws that allow you to keep the property you own.
Very rarely does anyone lose property if their bankruptcy is prepared correctly.
Bankruptcy Myth 4: Will I Ever Be Able To Own Anything Again?
FACT:
Yes, you will! This myth is completely false !
There are no laws prohibiting you from buying homes, cars, trucks,
equipment, household goods, etc.
Once you get what is called your ‘discharge in bankruptcy’, many people within 2
years after closing their bankruptcy case have bought new cars, houses, and
have excellent credit.
Bankruptcy Myth 5: Will I Never Get Credit Again?
FACT:
ONCE YOU’VE MADE THIS DECISION, BANKRUPTCY MAY BE THE BEST
THING TO EVER HAPPEN TO YOUR CREDIT!
Filing bankruptcy gets rid of debts you can’t afford.
Besides, having less debt to pay after a bankruptcy makes you look more
attractive to banks, credit card companies and other lenders.
Bankruptcy Myth 6: Filing Bankruptcy Means You’re a Bad Person.
FACT:
Filing bankruptcy means you’re a good person who’s acting responsibly.
Everyone wants to pay their bills. Everyone.
And everyone wants to take care of their family and provide their family with all
the things they need.
Putting our family first and making the changes necessary to make sure we have
a roof over our head, food on the table and warm clothes to wear is the most
responsible thing we can do.
You need to get over blaming yourself.
Most of the people who file bankruptcy are good, honest, hard-working people,
just like you and me.
Most file as a last resort after months or years of struggling to pay the bills.
When you want to file bankruptcy, it doesn’t make you a deadbeat.
It makes you a smart and responsible provider. Period.
Filing bankruptcy is actually one of the most positive, responsible, honorable and
noble steps you can take on behalf of your family and your family’s future,
happiness and prosperity.
Bankruptcy Myth 7: Filing Bankruptcy Will Hurt Your Credit For 10 Years.
FACT:
You are getting 2 completely different concepts confused with each other.
You are getting the fact that bankruptcy is reported on your credit report for up to
10 years mixed up with the effect that reporting will have on your credit.
Just because something is reported on your credit report does NOT mean it will
have a negative effect on your credit standing.
Usually, on the date you file bankruptcy, that is the worst your credit report will
ever look and most people will have successfully rebuilt their credit within 2
years.
Bankruptcy Myth 8: If You’re Married… Both You and Your Spouse Have To File For Bankruptcy.
FACT:
Cases are filed every day where a husband, or a wife, but not both, file
bankruptcy.
In many cases, where husband and wife both have a lot of debt, it makes sense
and saves money for them to both file, but it is never a ‘requirement’ under the
law.
However, in many situations, there is no good reason at all for the second
spouse to file.
In these situations, the spouse who needs the help can file and leave the other
spouse completely out of it.
Bankruptcy Myth 9: It’s Really Hard To File For Bankruptcy.
FACT:
Not when you file with an EXPERIENCED bankruptcy attorney.
In fact, bankruptcy is probably 1,000 times easier than trying to climb out of that
Everest sized mountain of debt.
Bankruptcy Myth 10: Even If You File For Bankruptcy, Creditors Will Still Harass You and Your Family.
FACT:
The minute you file bankruptcy, the Bankruptcy Court issues a Federal Court
order telling all of your creditors to leave you alone, or else they will be fined.
There is nothing more powerful against your creditors than the possibility of a
federal judge coming down on them for trying to contact you after the case is
filed.
In this case, you have the long and heavy arm of the law on your side, protecting
you from unscrupulous creditors.
Bankruptcy Myth 11: If You File For Bankruptcy, It May Cause More Family Troubles and May Even
Lead To Divorce.
FACT:
Filing bankruptcy is not the problem. The problem is not being able to pay your bills and not being able to provide for your family.
This is what causes stress and anxiety in the marriage.
Too many bills to pay? Want to avoid divorce?
File bankruptcy!
Bankruptcy Myth 12: You Can’t Get Rid of Back Taxes Through Bankruptcy.
FACT:
A bankruptcy can eliminate many back taxes.
Under the law, there are 4 or 5 qualifications that have to be met, but if these are
met in your bankruptcy your taxes are gone!
Bankruptcy Myth 13: You Can Only File Once For Bankruptcy Protection.
FACT:
You can file and get a discharge under Chapter 7 once every 8 years.
And if you need protection from your creditors before that, there are other types
of bankruptcy you can file.
Bankruptcy Myth 14: You Can Pick and Choose Which Debts and Property To List In Your Bankruptcy.
FACT:
No. Picking and choosing which to keep would be against the law.
Under the law when you file bankruptcy, you have to list all your property and all
your debts.
Don’t believe a creditor or bill collector if they tell you that you have the choice to
leave them out of the bankruptcy.
Bankruptcy Myth 15: You Can’t Afford To File Bankruptcy.
FACT:
In most cases, you can’t afford not to!
Most people think they can’t afford to file bankruptcy because they can’t afford
their bills.
When a person or couple decides to file bankruptcy, the money used to make payments on their bills is used to pay a bankruptcy attorney.
Get Your Questions Answered by a Local Bankruptcy Attorney
As you can see, there is a LOT of information that the repo man, the credit companies, and debt settlement companies do NOT want you to know.
I’m certain that if you’re reading this right now, then you are light years ahead of where you were a few minutes ago.
Lastly, if you want to speak to a professional about your situation, we urge you to visit our website or call us now
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