Top 10 Bankruptcy Truths

If you're struggling with debt, here are ten things to know about bankruptcy and how it may affect your future.

Free Bankruptcy Case Evaluations

You can get a free bankruptcy case evaluation by consulting a bankruptcy advisory service.

1. It's more common than you think. Last year, more than 1 million people filed for bankruptcy.

2. It may save your house. Bankruptcy's automatic stay is designed to stop foreclosure, even if the process has already started. Plus, Chapter 13 bankruptcy is designed to resolve back debt from your mortgage. Few other programs can do this.

3. You don't need to study for the means test. The means test isn't an exam, and it isn't designed to keep most people from filing. It's simply a qualifier to keep people from abusing the system which has been put in place as a protective provision and to give deserving individuals an opportunity for a fresh start. Don't let the test intimidate you, as a lawyer may answer all the questions and help you determine whether you pass the test.

4. It can stop the practice of a court ordered wage garnishment. If a creditor is taking money from your paycheck or bank account, the automatic stay may put a quick end to this practice while you use bankruptcy procedures to clear your debts.

5. All types of people file. Many filers are employed, and statistics show that people with advanced college degrees are filing in larger numbers.

6. You may be able to clear several different types of debt in one filing. One filing allows you to include eligible debt from many sources, including credit cards, utility bills, medical bills, car loans and mortgages.

7. You may be able to finish bankruptcy quickly. Chapter 7 bankruptcy may be completed in only a few months.

8. The results are protected by law. Once a debt is cleared in bankruptcy, creditors cannot pursue it any further. If they do, they're breaking the law.

9. Filing Chapter 7 doesn't necessarily mean you have to sell your stuff. State and federal laws include "exemptions" which may prevent a forced sale of certain types of your property, often including your home, car and other important belongings.

10. You can get help understanding the laws. If you want answers about how bankruptcy and the laws apply to you, you can get a free case evaluation with a local bankruptcy lawyer.

by: Nathan Randall

POST COMMENT

Lawyers Are Needed For Provo Bankruptcy Is Bankruptcy Better Than A Short Sale? Florida Bankruptcy Laws That You Simply Need To Know Benefits Of Finding A Good Bankruptcy Attorney How The Bankruptcy Trustee Works With Consumer Debt Important Bankruptcy Questions Answered Understanding Chapter 7 Bankruptcy Recovering After Bankruptcy How An Experienced Provo Bankruptcy Attorney Can Help You The Secret You Should Know About Dallas Bankruptcy Lawyer The Mortgage Crisis Helps To Pave The Way For Bankruptcy Top Five Reasons To File For Bankruptcy Bankruptcy Faqs