Common Myths about Filing Bankruptcy
Bankruptcy sometimes gets a bad rep. There are dozens of myths that surround it and people can often times buy into those as truth. Bankruptcy-Solutions.net wants to help you sift through the myths in order to truly understand how helpful bankruptcy can be to those who are struggling with massive amounts of debt. Here are just a few myths about filing bankruptcy:
- Filing Bankruptcy can get rid of all my debt – Short answer: Not true. The main type of debt that filing bankruptcy can erase is unsecured debt. This includes items like credit card debt, medical bills, payday loans, and even personal loans. However, there are types of unsecured debt that filing bankruptcy cannot erase – these are known as non-dischargeable debts and they include student loans, child support, alimony, and items owed to the government like back taxes and parking tickets.
- Filing Bankruptcy will ruin my credit – Short answer: Not true! Do not be fooled by this all too common myth. Filing bankruptcy will not ruin your credit. Filing bankruptcy is a way to get your credit back on track. Think of it this way – if you are looking to file bankruptcy then your credit is probably already lower than you’d like it to be. Large amounts of debt tend to do that to credit. By filing bankruptcy and erasing debt you can begin to make financially positive decisions to make sure that your credit is heading back in the right direction.
- Filing Bankruptcy represents financial failure – Short answer: Not true! The majority of bankruptcy filings today are traceable to unexpected events like job loss, illness, or divorce. No one plans to file bankruptcy. Bankruptcy is used to prevent individuals or married couples from being buried by debts they can never repay.
Deciding to File Bankruptcy
Making the decision to file bankruptcy can be difficult. There are a lot of items to consider. The best way to make the decision is to start by meeting with a bankruptcy attorney. Bankruptcy-Solutions.net can connect you to a bankruptcy lawyer in your area so that you can start the discussion. Typically, the initial consultation with a bankruptcy attorney is free of charge. During this meeting you can discuss your financial situation with the attorney and he/she can give you an educated opinion of what Chapter of bankruptcy would be most beneficial for you and why. This meeting will also give you a chance to ask the bankruptcy attorney any questions you have about the timeline, costs, or process in general.
How to File Bankruptcy
Filing bankruptcy is a legal process. The official process involves paperwork called a petition being filed with the bankruptcy court on behalf of the debtor. This petition can anywhere from a few pages to hundreds of pages in length depending on the complexity of the case. The petition includes debt amounts, creditor names, income information and expense lists. It allows the court to see your case information all in one place so that they can evaluate it. Around 30 days after your petition has been filed with the court you will have a bankruptcy court date known as the “meeting of creditors.” This is nothing to worry about. It is a short meeting with the bankruptcy trustee to ensure that fraud has not taken place. If you have a bankruptcy attorney you can request that they are present at the hearing with you. After your hearing you will wait 60-90 days for your bankruptcy discharge papers to arrive in the mail. This will notify you that your debts have been completely erased.
If you have read this article and are now thinking that a bankruptcy could be beneficial to your situation then contact Bankruptcy-Solutions.net today. You can fill out our free online application or call our toll free number if you prefer to speak with someone. Filing bankruptcy may be exactly what you need to get your finances back on track for good.