Common Bankruptcy Misconceptions Clarified:
""All of my credit card debt will be eliminated by declaring bankruptcy!""
This is one of the most prevalent erroneous beliefs in support of filing. By filing, some individuals are led to believe that all debts may be eliminated. Child support, student loans, and income taxes are obligations that cannot be discharged by filing for bankruptcy. Moreover, whether any debts are discharged is contingent upon the chapter filed. Certain debts will not be discharged under certain chapters.
""Bankruptcy will probably have a lasting impact on my credit scores!""
This is one of the most prevalent misconceptions against filing. Some individuals are led to believe that they may not be able to rebuild their credit ratings after declaring bankruptcy. In reality, individuals can begin repairing their credit scores relatively quickly after filing. People can obtain a secured credit card relatively quickly, and after 6 to 12 months of on-time payments, they may be eligible for an unsecured credit card. After obtaining a standard credit card, individuals can rehabilitate their credit by making consistent monthly payments.
""After maxing out my credit cards prior to registering for bankruptcy, my debts will be discharged,""""
While it is true that many financial obligations could be eliminated by filing for bankruptcy, the courts examine each debt very carefully before discharging it. If the courts discover that an individual created numerous charges prior to filing, they could consider this to be fraud. Courts do not typically discharge debts they believe were acquired without the intent to pay.
""I can file for bankruptcy as many times as I want in order to eliminate my personal debt!""
Some individuals believe their obligations will be perpetually discharged if they declare bankruptcy as frequently as they wish. This is untrue, as the courts have rules in place to prevent such conduct. There is no limit on the number of filings that can be made or the time interval between filings. When courts determine that insufficient time has passed between filings, individuals may not be eligible for debt cancellation.
""""Men and women who file for bankruptcy are reckless and negligent!""
Frequently, individuals in difficult financial situations are unwilling to declare bankruptcy out of fear that others will judge them negatively. It is a common misconception that individuals who file for bankruptcy are reckless and financially negligent, but this is not always the case. Bankruptcy may be necessary for those who have suffered a career loss or incurred substantial medical expenses. The declaration of bankruptcy is not inherently indicative of fiscal irresponsibility.
" - https://www.affordablecebu.com/
