The Myths of Bankruptcy - Once you know the facts about bankruptcy, it is not nearly as terrifying as it first appears. Here are some of the most common myths about bankruptcy and what you need to know before you clean your slate.
most formidable situations, bankruptcy has earned its reputation
based on very few truthful facts and too many false embellishments.
The majority of the miseducation of the public has occurred since the
current bankruptcy laws went into effect in 2005. But have no fear,
once you know the facts, filing for bankruptcy is not nearly as
terrifying as it first appears. Here are some of the most common
myths about bankruptcy and what you need to know before you clean
Myth #1: It is
difficult to file for bankruptcy.
The new bankruptcy laws have drastically reduced the time it takes to
be discharged from bankruptcy down to an average of nine months. In
today’s economic landscape, it is understandable that individuals
need to file for bankruptcy in order to start over. A qualified,
experienced bankruptcy lawyer can make the process as simple and
painless as possible.
Myth #2: You
will lose everything you own.
one of the biggest misnomers deterring people from filing. Bankruptcy
laws do vary from state to state, but every state has exemptions that
can protect certain assets, such as your house, car, qualified
retirement plans, household goods and necessary clothing.
Myth #3: You
will never get credit again.
the opposite, actually. Before you even get home from the courthouse,
your mailbox could be rich with credit cards offers again. The catch
is that they will be from subprime lenders charging very high
interest rates. In fact, if you have a credit card with no balance at
the time you file, you may not have to include it in your list of
creditors, since you don’t owe them money. You may even be able to
keep the card after the bankruptcy is finished.
Myth #4: If you
are married, both spouses have to file.
one is tricky, but not entirely true. It is very uncommon for one
spouse to have a significant amount of debt in their name only. If
there are debts that a married couple wants to get discharged in
which they are both liable for, they will need to file together. If
only one spouse files for bankruptcy, the creditors usually demand
the entire payment from the spouse who didn’t file.
Myth #5: You
can only file for bankruptcy once.
can actually file for bankruptcy more than once, but the new
bankruptcy laws extended the amount of time in between filings.
Chapter 7 bankruptcy can be filed for once every eight years and a
Chapter 13 filing once every two years. If you want to file for both
on separate occasions, there is a four year wait in between the two
Everyone will know you filed for bankruptcy.
you are a very prominent person or a major corporation and the media
gets word, the only people that will know about your filing are your
creditors. These days, the amount of people filing is so immense that
very few publications have the time, space or inclination to run
you are thinking about filing for bankruptcy in Louisiana, contact
the Louisiana bankruptcy lawyers that focus exclusively on bankruptcy
law, Kirkpatrick Bankrutcy Law. Every day, the attorneys at
Kirkpatrick and Associates help people save their homes, their cars,
and wipe out their debts from $5,000 to $300,000. No other law firm
is better qualified to bring you the fastest debt relief, and do it
right the first time. For a free consultation, call 504-828-3311 or
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