Top Myths and Reality of Avoiding Bankruptcy
Bankruptcy myths cause individuals to hold back from filing bankruptcy. The truth is. There are certain facts about bankruptcy that many individuals do not realize. Most of them have obtained the wrong information and details of bankruptcy. Family members, friends and co- workers even supply the wrong information that perpetuates the myths about bankruptcy. Bankruptcy is a legal plate form of lifeline for people drowning in debt. Consumers and businesses petition courts to release them from liability for their debts.
For you to understand clearer and better, you better read on the following myths and reality of avoiding bankruptcy:
Myth 1-Bankruptcy is ultimately difficult
Truth is: Though there are overwhelming rules and complex things about bankruptcy and the process is somewhat confusing, you need to realize that bankruptcy can still bring you certain benefits. Also, if you have knowledgeable, competent and experienced bankruptcy lawyer with you, you can feel comfortable and the process will turn out easier to handle. Many individuals have revealed that they would’ve have filed earlier only if they had known what was really involved in a bankruptcy process.
Myth 2-If you File, You will lose your Property and Everything that You Have
Truth is: Due to some exemptions included in the bankruptcy law, most individuals who file for bankruptcy protection don’t really lose all their properties. Individuals with non-exempt properties can typically keep their properties if they agree to agree to settle or pay back some or all of their debts. Keep in mind that bankrupt laws were designed or written to help individuals and not to hurt them. In most of the cases, Chapter 7 will provide you relief from most forms of debt. In the vast majority of cases in Florida, you will be able to keep your property. Of course, analysis by a bankruptcy professional is necessary to accurately make that determination.The myth probably got its start in the fact that the Fair Credit Reporting Act allows the reporting of a bankruptcy filing for 10 years.
Myth 3-If you File, You Will Never Get Credit Again
Truth is: It’s possible to still rebuild credit after you file for bankruptcy. When an individual finally realized the need to file for bankruptcy, their credit reports are usually in negative or bad shape. The truth is, there is certain instances that filing for bankruptcy will improve credit report. Most people who file for bankruptcy relief have already damaged their credit rating with over-the-limit notices, late payments, and collection accounts. The positive outcome of a bankruptcy filling is that increase our credit rating much faster. People who are insolvent still cannot pay their bills, so I am not satisfied that the creditors are actually collecting more, even though bankruptcy filings are down.
Myth 4-If you’re Married, You and Your Spouse Should File Together
Truth is: This statement is not true. One spouse can actually file even without the other spouse. In some instances that it completely makes sense if only one spouse will file.
Myth 5-Your Bankruptcy will Affects your Spouse’s Credit
Truth is: One of the bankruptcy myths that worry some residents is the possible thing that might happen to their spouse. The truth is when one spouse file for bankruptcy protection, the credit of her or his spouse is not really affected.
Myth 6-You Can only File Bankruptcy Once in a Lifetime
Truth is: Under a new bankruptcy law, it’s harder to file several times however, this is possible. There are numerous individuals who have actually filed bankruptcy for the second or third time around. People do not really want to file bankruptcy. Illness, divorce, job loss, financial mistakes and unexpected expenses are the causes behind most bankruptcy filing.
Bankruptcy myths can actually hold individuals back from filing bankruptcy. In order to get real facts about bankruptcy and learn about the right options to take to ensure that things end up favorable to you, visit http://lakelandlawyers.net/. You can find the right information and professional legal assistance from here.
Rosa S. Roeder works for a debt relief agency. We help people file for relief under the Bankruptcy Code. We never forget that our clients, just like us, are real people facing real-world challenges and opportunities