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Myths and misconceptions about bankruptcy
them before you go into this process.
You need to take some time to learn the ins and outs.
Many people fear that others will find out the status of their financial life when they file for bankruptcy but this is not something that you have to worry about. No one will find out about you filing for bankruptcy unless you tell them or unless you are famous.
No matter what you hear not all of your debts will be wiped clean when you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. There are debts that cannot be erased such as child support, alimony and student loans along with any tax liens that you may have. And if you have been sued then there is a good chance that you will still have to pay this money to those owed.
While many people think that they will lose everything when they file for bankruptcy this is never the case. In Chapter 7 you will get to keep your residence and your car among other things and in Chapter 13, as long as you pay according to the schedule that you set up you will be able to keep just about everything. Check with your local legislators for exactly what is exempt and what is not because each state has slightly different rules for filing bankruptcy.
If your main concern is your ability to get approved for credit down the line then you need to know that you will be able to get credit. For a few years you will not get god rates but in 7 to 10 years you will have completely wiped the bankruptcy from your credit report. If however you work hard to rebuild your credit you can get your credit report looking attractive again long before that.
It is not necessary all of the time for both partners to file for bankruptcy if they are married. This depends on the state in which you live and the actual debt that you want discharged.
Filing for bankruptcy is not a hard thing to do but you should not do it without the help of a lawyer who specializes in bankruptcy law. You cannot afford to make any mistakes when you are filing for bankruptcy.
Filing for bankruptcy does not make you a bad person. Filing is something that embarrasses many people but it is not uncommon for those who have just been through a divorce to file for bankruptcy or those who have been extremely ill and spent some time off of work or in the hospital.
For some reason many people seem to
think that when they file for bankruptcy they will be doing their credit
rating and report a favor but this could not be farther from the truth.
Just because you get rid of most of your debt does not mean that your
credit has been restored in fact your credit is going to suffer when you
file for bankruptcy.