|15 Myths About Bankruptcy
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|Nearly 80% of Credit Reports contain errors!
Plus: ALL CREDIT REPORTS need to be cleaned
up after Bankruptcy
Filing for bankruptcy hurts your credit for 10 years .
Not True . Bankruptcy may stay on your credit for 7 to 10 years,
but you can start rebuilding your credit once your bankruptcy is discharged.
There are companies out there that offer to help you rebuild your credit by extending car loans & credit cards as soon as your case is discharged.
Also, if you already have a car loan or a home loan ... you can rebuld your credit sooner just by making your your payments on time each month.
SO THERE IS LIFE AFTER DEBT!
Everyone will know you filed for bankruptcy.
Not True . Bankruptcy is public record but unless you are
someone famous, most people will never know you filed. In most
cases, the only people who know you filed are the people you tell.
New Bankruptcy Laws make impossible to file Bankruptcy.
Not True. The bankruptcy reform act changed only the method in
which Debtors qualify for the different types of bankruptcy. It
doesnít prevent people from filing and in most situations people
are still able to get the same relief now as before the law changed.
You are a bad person for filing bankruptcy.
Not True. There is a reason that over one million people file for
bankruptcy each year and it is not because they are bad people.
Bankruptcy is a solution to help good people go through a bad
time. It provides hard working people with the fresh start that
they deserve, but are not able to obtain.
You can pick and choose what to put into bankruptcy.
Not True. You do have to list all of the debts that you owe and
the property that you own. You cannot discriminate between
creditors, even if you want to keep paying them. It is good to
want to continue paying creditors, but it is still mandatory to
include the debt. If you feel like paying it after the bankruptcy then
go ahead, but you will not be obligated to.
It's hard to file for bankruptcy.
Not True . There is a lot of paperwork involved & many details to cover ... but having a
skilled attorney makes the process much smoother.
You will never be able to own property again.
Not True. You will get credit card offers and can be extended credit right after the discharge of your bankruptcy. So you will be able to buy things again . (Just watch your budget)
You will lose everything you own.
Not True . Bankruptcy allows you to keep your property. Outside
of bankruptcy you could lose your property to creditors, but once
you have filed for bankruptcy you and your property are
protected. Laws that allow you to keep property vary from state
to state and you should consult an attorney in your area to
property advise you of the laws in your jurisdiction. Bankruptcy
doesnít always wipe out liens, which means if you want to continue
to keep the property you will need to continue to pay the lien.
Both you and your spouse have to file bankruptcy together.
Not True. You can file together or separately, that is your choice.
In many cases it makes sense for husband and wife to file
together, but in some instances the spouse might not want to file.
This is absolutely fine and definitely allowed by the court.
You can't get rid of back taxes in bankruptcy.
Depends. You can get rid of income taxes that are more than
three years old by filing bankruptcy. There are several
qualifications that have to be met in order for the taxes to be
wiped out, but having a portion wiped out is better than none at
all. In addition, sales taxes must be repaid and cannot be wiped
out by filing bankruptcy.
You can only file bankruptcy once.
Not True . You can file for bankruptcy as many times as you like.
Although, you are limited by how often you can receive a
discharge. You can receive a discharge from Chapter 7 once every
8 years. You can receive a discharge from Chapter 13 every 2
years. If you get discharged in a Chapter 7 you have to wait 6
years before getting a discharge from Chapter 13. If you get a
Chapter 13 discharge then you need to wait 4 years to get
discharged from a Chapter 7.
You can never get credit again.
Not True. You will start establishing credit from day one.
Bankruptcy wipes out debt, which in turn helps your credit score.
By making timely payments on the property that you choose to
keep also shows a record of good credit. You will be able to get
credit as soon as your bankruptcy is discharged and sometimes
Only losers file for bankruptcy.
Not True. Bankruptcy is a means for good people who are going
through bad times to get relief. Many times people have to file
because they have lost their job, gone through divorce, or
experienced medical illness. Bad times donít make a person bad.
Bankruptcy can provide the relief that good hardworking people
need to get them out of the bad time.
Creditors can still harass you if you file for bankruptcy.
Not True. When the bankruptcy is filed, automatic protection is
put onto you and all of your property instantly. Creditors are not
allowed to contact you for any reason, which includes calling or
even billing you. If they persist in harassing you, you do have
remedies available through the Federal Bankruptcy laws.
Filing bankruptcy causes more family trouble and divorce.
Not True. Bankruptcy eliminates financial stress by eliminating
debts. Although making the decision to file bankruptcy might be
difficult one, the relief provided will lift a huge weight off of you.
The absence of financial stress will give your relationship a fighting
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