There are many bankruptcy myths about which can scare you from filing an Affordable Bankruptcy. MSN recently posted an article about bankruptcy myths that we will share with you. Should you have any questions about declaring an Affordable Bankruptcy after reading this article, please call us at (219) 757-0225 to set a free meeting with an Affordable Bankruptcy lawyer.
With a mind toward declawing the monster, here are a dozen misconceptions about filing or declaring bankruptcy:
1. Everyone will know I've filed for bankruptcy. Unless you're a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors. While it's true that bankruptcy is a public legal proceeding, the number of people filing is so massive that very few publications have the space, manpower or inclination to run all of them, although some local newspapers do print the names of those who have filed in that community.
2. All debts are wiped out in Chapter 7 bankruptcy. You wish. Certain types of debts cannot be discharged, or erased. They include child support and alimony, student loans, restitution for a criminal act and debts incurred as the result of fraud.
3. I'll lose everything I have. This is the misconception that keeps people who really should file for bankruptcy from doing it, says Chris Viale, the chief operating officer of Cambridge Credit Counseling in Massachusetts.
"They think the government will sell everything they have and they'll have to start over in a cardboard box," Viale says.
While bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods and clothing.
"For most people, they'll pass through a bankruptcy case and keep everything they have," says John Hargrave, a bankruptcy trustee in New Jersey. If you have a mortgage or a car loan, you can keep the property as long as you keep making payments (like the rest of us).
4. I'll never get credit again. Quite the contrary. It won't be long before you're getting credit card offers again. They'll just be from subprime lenders that will charge very high interest rates. "There are innumerable companies that will provide credit to you," says California bankruptcy attorney and trustee Howard Ehrenberg.
5. If you're married, both spouses have to file for bankruptcy. Not necessarily. "It's not uncommon for one spouse to have a significant amount of debt in their name only," Hargrave says. However, if spouses have debts they want to discharge that they're both liable for, they should file together. Otherwise, the creditor will simply demand payment for the entire amount from the spouse who didn't file.
6. It's really hard to file for bankruptcy. It's really not. Technically, you don't even need an attorney -- you can do the paperwork without one. However, going through the procedure alone is not recommended.
7. Only deadbeats file for bankruptcy. Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job or a serious illness. They've struggled to pay their bills for months and just keep falling further behind.
8. I don't want to include certain creditors in my filing because it's important to me to pay them back someday, and if the debt is discharged, I can't ever repay them. Bless you for even thinking about such a thing. You're no longer obligated to repay them, but you always have the opportunity. If your conscience won't let you sleep because you didn't pay your debts, there's nothing in the bankruptcy code that prevents you from doing that once you're back on your feet. But it is nearly impossible to leave any account with a balance out of your list of creditors. In general, all creditors receive notification of your bankruptcy filing, whether they are listed in the petition or not.
9. Filing for bankruptcy will improve my credit rating because all those debts will be gone. Filing for bankruptcy is the worst "negative" you can have on your credit report. Unlike other negatives, which stay on your report for seven years, bankruptcy can be there for 10 years, but you do get to rebuild your credit eventually.
10. You can't get rid of back taxes through bankruptcy. Generally speaking, this is true. However, there is such a thing as tax bankruptcy.
11. You can only file for bankruptcy once. The truth is, you can file for Chapter 7 bankruptcy only once every eight years, says Justin Harelik, Bankrate's bankruptcy adviser. For Chapter 13 reorganization, you can file more often than that.
Of course, that doesn't make it a good idea.
"Multiple bankruptcies are really bad," Rosenberg says. "Many people get into the habit of once they've done it, it becomes a way of life. This is not good for your karma." Or your credit rating.
12. I can max out all my credit cards, file for bankruptcy and never pay for the things I bought.That's called fraud, and bankruptcy judges can get really cranky about it.
Material from MSN Money.
At
Schlyer & Associates, an
Affordable Bankruptcy law firm in Northwest Indiana, we help people declare bankruptcy every day, both Chapter 7 and Chapter 13. By declaring bankruptcy, you can eliminate or reduce credit card debt, medical bills, unsecured loans, payday loans and other types of debt. You can stop foreclosure, garnishments and end creditor harassment. At
Schlyer & Associates, we can help you declare bankruptcy without screaming it from the rooftops!
At
Schlyer & Associates, the
Affordable Bankruptcy law firm in Merrillville, Indiana, we offer free, face to face meetings to discuss your personal financial situation at our office in Northwest Indiana. We will help you decide what option is best for you and how you can alleviate the stress of worrying about money, losing your home or having your check garnished. Let us help you declare an
Affordable Bankruptcy.
Schlyer & Associates Can Help You File an Affordable Bankruptcy
Many people have struggled financially and have had to make the decision to file an
Affordable Bankruptcy. Remember, you are not alone and at
Schlyer & Associates, you will not be judged or be made to feel embarrassed. We are here to help. We are a debt relief agency.
Please call the Northwest Indiana law firm of
Schlyer & Associates at (219) 757-0225 to set up your free bankruptcy consultation with one of our
Affordable Bankruptcy attorneys. Dealing with financial difficulties can be a stressful time on you and your loved ones. We will help you file an
Affordable Bankruptcy.
I do not live near your office, can you still represent me?
Absolutely. You can live just about anywhere and we can still represent you. However, most of our clients do live near our office. The lawyers at
Schlyer & Associates routinely represents clients that live in Lake County or Porter County, Indiana, including the communities of Hammond, East Chicago, Gary, Whiting Munster, Griffith, Highland, Dyer, St. John, Schererville, Cedar Lake, Lake Station, Crown Point, Merrillville, Hobart, New Chicago, Lowell, Lake Dalecarlia, Winfield, Miller, Lake Village, Valparaiso, Hebron, Dune Acres, Kouts, Odgen Dunes, Chesterton, Town of Pines, Portage, Porter, Wheeler, South Haven or Beverly Shores as well as in the greater Chicago, Illinois area. It does not matter if your case is from Indiana or Illinois, since many of the attorneys at
Schlyer & Associates are licensed in both in Indiana and Illinois.
Where Can I Find the law office of Schlyer & Associates?
Call us today at (219) 757-0225 to schedule your free meeting.
Posted by Attorney David R. Novak
200 West 80th Place, Merrillville, Indiana (219) 757-0225
