subject: Some Bankruptcy Myth Buster [print this page] Some Bankruptcy Myth Buster Some Bankruptcy Myth Buster
Bankruptcy should only be an option for consumers who have already tried debt consolidation or credit card debt relief programs, for their unsecured debts, and failed. Here are some myths about bankruptcy:
Everybody will know that I filed!
Unless you're a celebrity or you have told a gossip about your filing, your bankruptcy filing is not going to be announced all over the public spaces. Also, if you've applied for a loan or a job, and your prospective lender or employer has requested for your credit report, then they too would know that you've filed.
Chapter 7 Liquidation Bankruptcy can eliminate all my debts
That's not true. Only the unsecured debts like the credit card debt are sure of being discharged. But debts such as alimony and child support, tax, student loan, and debts with fraud charges are not going to be discharged in bankruptcy.
The Bankruptcy court is going to get all that I have
That's false. There are state exemptions to bankruptcy and if you are considered "insolvent" you may even get away with more exemptions.
Married couples have to file bankruptcy, jointly
That's not necessarily the case for all. And the rules for common properaty states and community property states differ.
One spouse may file separately or alone but it would leave the other spouse vulnerable to collection activities from the creditors.
You cannot file bankruptcy by yourself
You can file bankruptcy by yourself but know that the court would treat you as a somebody who knows all about bankruptcylike a bankruptcy lawyertherefore, if you commit a mistake, say you missed a meeting or there was an error in your papers, then that's ground for dismissal.
It's okay to not include a couple of creditors in my petition
Don't even think about it. That decission would haunt you once they found out that you left them out of the repayment. Instead of paying them according to what you can afford, with their agreement, you might be forced to pay the full amount, with you not having a say on it.
Also, the left out creditors can and will request the bankruptcy court to reopen your case, if your debt is significant.
Filing bankruptcy will improve my credit
THAT IS ONE OF THE BIGGEST MYTHS there is. Bankruptcy is a financial move that experts would warn you against. A Chapter 7 stays on your report for 10 years and a Chapter 13 for 7 years. Plus, either would be on your public records for 20 years.
Rebuilding a good credit after a bankruptcy would take you 2 years or more.
I can only file bankruptcy just once in my life
There are intervals to filing. "Under the bankruptcy laws effective on October 17, 2005, Chapter 7 cannot be filed unless the debtor was discharged from the previous Chapter 7 or bankruptcy more than eight years ago.
The debtor cannot file a Chapter 13 unless: (1) the debtor received a discharge under Chapter 7, 11 or 12 more than four years ago; or (2) the debtor received a discharge under Chapter 13 more than two years ago. "
Before I file bankruptcy I can charge on my cards like crazy and have all those debts discharged without me paying a single penny
That would be fraud and the trustee of the case would find out.
