June 6, 2016

1. It is extremely difficult to file for bankruptcy

  • Under the changes in the law it can be extremely difficult to file for bankruptcy on your own. There are many new requirements that did not exist prior to 2005. However having an experienced bankruptcy attorney on your side will help you navigate the process, and alleviate any confusion or stress you may have.

2. Everyone will know you’ve filed for bankruptcy

  • Unless you are a large corporation and the filing is covered by the media chances are extremely good that the only your creditors will be made aware of your filing.

3. Once you file for bankruptcy all of your debts are entirely wiped clean

  • Although many debts are discharged by bankruptcy there are several types of debt that will remain. Some of these include child support, alimony, and restitution payments as a result of a crime, which cannot be discharged.

4. If you file for bankruptcy you will lose everything you have

  • There are exemptions that help protect certain assets such as your house, car and money in retirement plans. To be certain check with your bankruptcy attorney and put your mind at ease.

5. Once you file for bankruptcy you will never be able to get a credit card again

  • Offers for credit cards can come in the mail as early as one month after filing. As long as you make on-time regular payments you can start to rebuild your credit. It is not advised to take out a credit card and start to run up bills again. On-time regular payments are required in order to begin to rebuild your credit.

6. Before filing for bankruptcy you can max out credit cards and all debt will be forgiven

  • It is considered fraud to purposefully max out your credit cards before filing for bankruptcy. Courts have ruled that charges purposefully incurred will not be discharged.

7. You can’t file for bankruptcy if you have a job

  • You can certainly file for bankruptcy if you are employed; in fact in order to file for a Chapter 13 bankruptcy you must have regular income. 

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