Myth number two: In Chapter 7 bankruptcy, all debts are discharged. It is important to note that certain types of debts cannot be eliminated. These include student loans, debts incurred as a result of fraud or criminal activity, child support, and alimony.
The third myth is that you will lose everything. I have no doubt that this is the misconception that discourages individuals from declaring bankruptcy. They believe the government will sell everything, forcing them to start from scratch. The laws governing personal bankruptcy differ from state to state. Numerous states provide exemptions to safeguard your property, including your home, automobile, and clothing. You can retain the property if you have a mortgage, but only if you make your monthly payments on time.
Myth number four: You will never receive credit in the future. Clearly, this is not the situation. In actuality, you will begin receiving credit card offers within six to eight months. However, these offers will only originate from subprime lenders with exorbitant interest rates. Before accepting their offers, you must consider your financial situation into account. If you are unable to pay your monthly installments on time, you should avoid these offers as they can harm your credit rating once more.
Numerous individuals believe that registering for bankruptcy is extremely difficult. The opposite is true. Technically speaking, you don't even need an attorney to petition for bankruptcy. You can complete all required documentation on your own. However, as the case progresses, you may require the services of an accomplished attorney.
Myth number six: Only deadbeats choose to file for bankruptcy. The majority of individuals file for bankruptcy following a life-altering event, such as a divorce, a severe illness, or unemployment. They have been unable to pay their expenses for roughly six months, and the situation is rapidly deteriorating.""
" - https://www.affordablecebu.com/
