Some Myths About Bankruptcy
When people are so deep into debts and they have absolutely no chance of paying them off then as a last resort they file for bankruptcy. However this is often considered a taboo subject and there are many misconceptions floating around. Some of the myths associated with bankruptcy are:
Myth 1: Everyone will know
People believe that as bankruptcy is a part of your public record every person will get to know about it. However this is far from the truth. No one is so bothered to check. Generally only your creditors and those you tell about your financial condition will know.
Myth 2: I’ll lose everything
Far from losing things you own, bankruptcy may actually enable you to retain them. You will merely have to diligently continue the payments on your house or vehicle and compensate for the missed payments.
Myth 3: I’ll never be able to buy anything again
No doubt bankruptcy, affects your credit drastically, however once in this situation you will also be flooded with credit offers either by secured cards or from sub prime lenders. The only downside is that these loans come at exorbitant interest rates. You will now need to avoid the mistakes you made in the past and improve your credit history. This can be done by paying off these loans punctually.
Myth 4: It is hard to file for bankruptcy
Filing for bankruptcy is not a tedious process. With the help of a good attorney just about any person can do so. They are experts at finding the loopholes and if not through Chapter 7 they will ensure you get file it through Chapter 13.
Myth 5: You can only file once
Filing more than once, for bankruptcy is not suggested. This means that the strategies you are using to handle your finances are not working effectively. It will be advisable to seek good professional help to get you out of this situation.
However the law allows it, although with certain restrictions. You can file for Chapter 7 bankruptcy only once every eight years. You can file a Chapter 13 once every two years. If you have filed a Chapter 7 and now intend on filing a Chapter 13, you can do so only after four years.
Myth 6: The only reason to file is to get out from under the responsibility
People are under the misconception that only people who shirk their responsibility to pay the loans back file for bankruptcy. However, it is actually filed by people who are so deep into debts that in spite of trying for years they cannot get out of it and the debts are accumulating. Also, people experiencing a divorce, loss of job, etc are often bankruptcy seekers.
Jay Moncliff
http://www.articlesbase.com/finance-articles/some-myths-about-bankruptcy-122215.html
7 Responses to “Some Myths About Bankruptcy”
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Why are people afraid of declaring bankruptcy?
It seems that there are many myths about declaring bankruptcy.
I had way too much credit card debt. Could just make my payments everymonth. Then, I got fed up. I declared bankruptcy and let me tell you; all the things that people say are wrong.
Bankruptcy is the best decision I have ever made! It was way easy. I got a lawyer from the phone book. He took care of everything. I even used my credit card to pay him!!(before I declared bankruptcy ofcourse)
Now I have WAY MORE CASH. and all that stuff about not being able to get a credit card is bull. I still got my Visa atm. it works just like a credit card, gets accepted just like a credit card and even smells just like a credit card.
TONS MORE CASH FOR ME!!!!!!!!!!!!
besides, didn’t the banks go bankrupt??? didn’t they get tax dollars bail out??? where is my bail out??
it can be badReferences :
so you bought a lot of stuff that you could not afford and like many dead-beats you just decide that you would not pay….
now try buying a house with your credit rating….
try buying a car with your credit rating…
your credit rating excludes you from some jobs..
and you most likely lost the respect of a lot people…References :
Well it stays with you for at least 7 years. You car insurance may go up. May have trouble renting. A Atm card is not a credit card.
The banks have paid most of the money back ahead of time. The car companies have to pay it back to.
How would you feel if you worked for some onw and on payday they say Bankrupt
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Well if ur not a citizen and u want to get ur citizenship, bankruptcy is a bad thing. This means u can’t get ur citizenship.
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no credit card, no loans or none over 1000 no more than 1 at a time you get less chance of getting a job thell see you are bad with money/have spending problems
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I prefer relish
It’s because some people are afraid of the stigma that often accompanies declaring bankruptcy. Rather than taking advantage of the benefits that can result from declaring bankruptcy, they are more concerned with what people will think of their inability to "pay up". How unfortunate for them!
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