Individuals who apply for bankruptcy cannot obtain credit for ten years.
This assertion is wholly false. A bankruptcy filing will remain on your credit report for seven to ten years, but it will not prevent you from acquiring credit. In fact, once your case is dismissed, you will likely begin receiving credit solicitations in the mail. The interest rate and other terms will be less favorable than those offered to those with excellent credit, but you will still receive offers. The best approach to rebuild credit following a bankruptcy filing is to obtain credit and make timely monthly payments.
If I declare bankruptcy, I may lose all of my property.
Not true for the overwhelming majority of filers. Exemptions enable you to protect certain types of property when filing for bankruptcy. In Missouri, for instance, a debtor may have up to $15,000.00 in equity in their residence and $3,000.00 in equity in their vehicle. Exemptions safeguard asset equity and prevent the Trustee from selling the property. Prior to filing your case, an experienced bankruptcy attorney will be able to advise you on this matter. However, in the vast majority of Chapter 7 cases, debtors do not have assets worth more than their available exemptions and are therefore able to retain all of their property.
Even after filing for bankruptcy, my creditors can still harass me.
This is not the case. The bankruptcy code provides 'automatic stay' protection, which requires creditors to cease debt collection efforts as soon as the case is lodged. If a creditor does not follow the rules, the debtor may have a cause of action against the creditor for 'punitive damages,' in which case a bankruptcy judge could punish the creditor with fines and penalties for failing to follow the procedures outlined in the bankruptcy code.
If my employer discovers out I filed for bankruptcy, I will lose my job.
This is false and also prohibited. Federal law prohibits discrimination against an individual who has filed for bankruptcy. (See 11 U.S.C. 525)
Bankruptcy causes conjugal difficulties.
Financial strain within the marriage is one of the primary causes of divorce. Filing for bankruptcy should alleviate tension and eliminate debt. The relationship should be strengthened by removing this source of tension.
Everyone will be aware of my bankruptcy filing.
Bankruptcy is a matter of public record, it is true. However, how many individuals do you know who have access to the online records of the bankruptcy court? In most circumstances, only your attorney, trustee, creditors, and anyone else you choose to inform will be aware that you have filed.
Filing for bankruptcy makes me a horrible person.
Not True. Each year, over one million individuals file for bankruptcy, and it's not because they're bad people. Instead of feeling humiliated about filing for bankruptcy relief, you should view it as a prudent financial choice.
Utilized correctly, bankruptcy is a potent tool that can provide a new start in life. Do not allow erroneous information to prevent you from receiving the alleviation you deserve. Bankruptcy can provide a clear financial slate. An experienced bankruptcy attorney can provide you with the advice you need to determine if filing for bankruptcy is the best option.
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