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Archive of "General" Category
What You Need To Know About Personal Bankruptcy
When thinking about personal bankruptcy, you will find that the more information that you have going into it, the better off you are going to be. Unlike what many people think, filing for bankruptcy is not a get out of jail free card, and you will find that if you are looking for a way to make your financial situation better, bankruptcy is not something that should entered into without a serious consideration of the consequences. If you are thinking about filing for bankruptcy, there are many different things that you should be aware of and fully consider.
Take some time and make sure that you consider what your options are going to be when it comes to your financial situation. Remember that this is not something that you should rush into, and while it is possible to file for bankruptcy on your own, you will find that it is almost always vastly preferable to hire a lawyer who can help you through the intricacies. After all, this is something that will have drastic consequences on your credit for ten years to come, and you should at least plan out what you are going to do about things like car purchases our house loans beforehand.
In addition, a qualified bankruptcy lawyer can talk to you about your financial options besides bankruptcy, some of which you may not even be aware of. Many of those options do not carry the long term negative impact on you that bankruptcy would.
It is a fallacy to think that simply filing for personal bankruptcy will negate all of your debts. For instance, there are some debts which will not be touched by bankruptcy at all. Child support and alimony are two things that you will need to pay, regardless of the bankruptcy that you file. You will also discover that if you make more than a certain amount of money that you will not qualify for complete debt liquidation, as is described in a Chapter 7 bankruptcy. If you make a sufficient amount of money, you may be forced to file a Chapter 13, which means that you will be on a payment plan with regards to your debts. In other words, with Chapter 13, your debts are not erased but simply reorganized, but the point is that those debts still exist. It is not your choice as to whether you file Chapter 7 or Chapter 13, but rather is a matter of the guidelines of the bankruptcy laws.
Personal bankruptcy is something that definitely has consequences, no matter what chapter you file. For instance, your credit score will be drastically affected, but this doesn’t mean that you won’t be able to get credit. In many cases, you will still receive those credit card offers, just like before, but now, you will find that you need to think about whether or not you want to sign on for cards with such high interest rates. This is something that anyone who files for bankruptcy needs to think about, so make sure that you do.
If you are in a situation where you feel that bankruptcy could really make a difference, take some time and really think about what your options are. This is something that can make a world of difference when you are considering personal bankruptcy, so go into it with the mindset that this is something that could really make an impact on your life and the way that you live it. For more articles like this, bookmark www.ArizonaBankruptcyAttorneys.net
By: Jon Arnold
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Arizona Bankruptcy Attorneys and The Myths And Facts About Personal Bankruptcy
Arizona Bankruptcy Attorneys and the myths and facts about personal bankruptcy. Arizona has bankruptcy laws that differ from federal bankruptcy laws. It is always best to consult an Arizona bankruptcy attorney before you make any final decisions regarding your potential bankruptcy. Please refer to any of our resources for sound, legitimate legal information.
Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt or divorce, filing for personal bankruptcy should be considered as a responsible step towards regaining financial freedom. If you are considering filing for personal bankruptcy, here are some of the myths and facts about it.
Myth #1: You can not file for Personal Bankruptcy.
Contrary to this myth, changes made by the US Congress in 2005 allow any debtor to file for personal bankruptcy. Bankruptcy is also governed by state laws. If you file bankruptcy in Arizona, Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers can help you determine whether you qualify for a Chapter 7 (liquidation of assets) or Chapter 13 (re-organization) bankruptcy.Myth#2: Filing for Personal Bankruptcy is embarrassing.
If you do not file for bankruptcy, it will actually be even more embarrassing to be hounded by your creditors. Taking charge of your financial situation and owing up to your responsibilities is actually admirable and should be something to be proud of.Myth#3: You will always have a bad credit score.
If you must know, the completion of personal bankruptcy proceedings will clear all previous credit record allowing you to begin with a new and clean slate. Many Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can guarantee this based on their extensive experience.Myth#4: You can only file for personal bankruptcy once in your lifetime.
If you filed for a Chapter 7 bankruptcy, you will need to wait a period of 8 years before you can file for the next Chapter 7 bankruptcy. On the other hand, you can file for a Chapter 13 bankruptcy as often as your situation requires.Myth#5: Personal bankruptcy means losing everything you have.
On the contrary, bankruptcy is designed to protect a debtor from losing all assets and at the same time find a way for all the debt to be settled. Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can provide you with the right information so that you will not end up losing any of your precious belongings.Myth#6: Filing for personal bankruptcy is hard and impossible.
Anyone can file a personal bankruptcy. You will have no difficulties at all. If you want, you can hire Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers to help you every step of the way.Personal bankruptcy is a serious but effective solution to your financial problems. Before you file for one, make sure that you have explored all available bankruptcy alternatives.
By: Natalie Aranda
Article Directory: http://www.articledashboard.com
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Arizona Bankruptcy Attorneys and How to File For Chapter 7 Bankruptcy
Arizona Bankruptcy Attorneys presents some thoughts about filing for chapter 7 bankruptcy. Please note that Arizona bankruptcy laws differ from federal bankruptcy laws. Contact an Arizona bankruptcy attorney for more information and for possible legal representation.
If you are trapped by debts you may be considering Bankruptcy. There are many different types of bankruptcy but the by far the most common is Chapter 7 bankruptcy or liquidation.
Read more…Need more info on bankruptcy and how it applies to Arizona residents? Check out these links:
Chapter 13 Bankruptcy works for thousands of Arizonans each year.
Foreclosures Rise 81% in 2008 from 2007 and Arizona Bankruptcy
What is a Chapter 13 Bankruptcy?
What type of debt is NOT Discharged in an Arizona Chapter 13?
Chapter 13 Bankruptcy can be a useful legal tool for those in serious financial trouble.
Arizona Bankruptcy Filings Are Up
Arizona Bankruptcy Filings Are Up Statistics from the U.S. Bankruptcy Court of Arizona.
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Arizona Bankruptcy Attorneys Ask: Contemplating Filing For Bankruptcy?
Arizona Bankruptcy Attorneys presents the following article about bankruptcy. Remember that Arizona bankruptcy laws differ from federal bankruptcy laws. To know how this affects you, contact an Arizona bankruptcy attorney for more information.
Bankruptcy has many reputations, some people think that bankruptcy will take care of all their debts and life will be good. Some people file as often as they can, they have made it a way of life. Some people should file and don’t because of what other people will think.
Filing for Bankruptcy does not get rid of all debts. Some of those debts include but are not limited to: Alimony, Child Support, Back Taxes, Student Loans, and Fraudulent debts, and recent large purchases of more that $550 for luxury item purchased within 90 days of filing.
There are two different kinds of bankruptcy a consumer can file for Chapter 13 and Chapter 7. Chapter 7 is total liquidation it is the quickest. Federal bankruptcy laws provide a ‘means test’ to determine eligibility. Also beginning October 17, 2005, you must obtain approved credit counseling before you can file bankruptcy. Another new federal bankruptcy requirement is that you must file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy. Under Chapter 7 bankruptcy there are certain items that can be kept but have limits. There are State exemptions and Federal exemptions and rules that go with them. Another thing to consider is Chapter 7 will not fix is your credit score. If you are behind on your bills your credit may already be bad and bankruptcy cannot fix it. If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.
Chapter 13 is a reorganization of debt. While many think that they will have to pay the entire amount of outstanding debt, under Chapter 13, individuals literally pay pennies on the dollar and work through a repayment plan that helps them achieve freedom from their debt in a period of between three and five years. There are many steps to filing Chapter 13. Many assets can be kept and protected under Chapter 13. Like Chapter 7 there are also qualifications that need to be met before filing Chapter 13.
There are alternatives to filing bankruptcy. Bankruptcy should be the last resort. There are many attorneys that specialize in this area. Each state has its own rules along with many federal rules and regulations. An attorney can help decide whether or not someone should or can file for bankruptcy, which kind of bankruptcy, and whether or not they are eligible.
By: babwebstar
Article Directory: http://www.articledashboard.com
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Arizona Bankruptcy Attorneys and Medical Bankruptcy
Arizona Bankruptcy Attorneys presents the following information on medical bankruptcy. Medical bills represent one of the top reasons that consumers file for bankruptcy. As Arizona bankruptcy laws differ from federal bankruptcy laws, contact an Arizona bankruptcy attorney if you have questions about filing bankruptcy.
As the world becomes more and more unhealthy, medical bankruptcy becomes more likely as people fight to cure various diseases and ailments associated with their lifestyle. Unforeseen medical bills can also wreak havoc on individuals that are unable to work while they are seriously ill. This may also be the case for individuals who have health insurance. Medical bankruptcy may be treated with a bit more sympathy by some courts, depending on the situation of the individual.
Examples of Groups Filing for Medical Bankruptcy
People who are 65 and over are more likely to suffer from medical bankruptcy than younger and healthier age groups. It goes without saying that the body becomes more prone to illness the older that we get. This makes it inevitable that as we get older and can longer work to pay the bills, we may be faced with medical bankruptcy in the case of a serious illness, if we have not taken preventative measures prior to the diagnosis.
Another group which is likely to file for medical bankruptcy is that of young single mothers. If their spouses have abandoned them and their children, and do not pay any child support, the mother will be left to pay these high expenses by herself. It is a difficult situation for any parent who has a sick child to care for, and if it is the parent who is sick herself then there will be no one to earn the money to pay the bills.
Low wage earners are another group that may find themselves filing for medical bankruptcy. At times it may be difficult to find jobs that can support all of a family’s needs, so finding the money for unexpected medical bills can be a nearly impossible task for this group. Poor education and lack of practical skills can be attributing factors to this problem, and will require further investigation when the time arises.
Some people will file for medical bankruptcy simply because the medical systems are not willing to work out any payment schedules for them to repay their debts. Cases such as these have risen steadily over the years, and are now quite a common occurrence in bankruptcy courts around the country. Since many folks do not have large amounts of money readily available to pay mounting hospital costs, the only choice for some is to declare medical bankruptcy.
If you fall into any of these categories, you may find the claiming medical bankruptcy is the best choice for you to get out from under the weight of your bills. This bankruptcy is normally seen in a more sympathetic light than others by the courts and lenders, since the circumstances are generally unforeseen and unavoidable. Mail this post
Arizona Bankruptcy Attorneys and the ABCs Of Chapter 13 Bankruptcy
Arizona Bankruptcy Attorneys presents the following article about the ABCs Of Chapter 13 Bankruptcy. Arizona bankruptcy laws differ from federal bankruptcy laws so it is important to contact an Arizona bankruptcy attorney to assist you with your bankruptcy questions and legal representation.
Chapter 13 bankruptcy is just another way to reduce your debt but to do so while keeping some of your valuable assets. Arizona bankruptcy lawyers can help you handle a chapter 13 bankruptcy and walk you through the process so everything goes as planned as goes as quickly as possible. You might be wondering whether a chapter 13 bankruptcy is something you would be able to go through. And, if you are over your head in debt and don’t know what to do but aren’t interested in losing your big assets like your home then a chapter 13 bankruptcy is the perfect opportunity. Phoenix, Arizona bankruptcy lawyers will explain to you that by filing this type of bankruptcy you make a plan to pay back your debts over a period of time, which is usually three to five years. The great thing is that you can keep valuable assets that are not covered by exemptions. With a Chapter 13 individuals will be making monthly payments and in some cases biweekly payments so anyone filing for this type of bankruptcy needs a constant source of income.
There is then a confirmation hearing in a court of law. At this meeting the proposed repayment plan will be reviewed and it will be determined whether or not the plan meets the Bankruptcy Code. The biggest difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy is that in 13 individuals keep their property and assets and make payments based on their income in order to pay off creditors.
With this type of bankruptcy the debtor does not see his debts erased but rather must make appropriate payments until the plan is achieved and a discharge is received. While the debtor is in repayment he will be protected by things such as garnishments, lawsuits, and any other type of action by creditors. More debts are eliminated under the Chapter 13 plan than under the Chapter 7 plan.
You need to evaluate your financial situation and determine which bankruptcy is the best option for you. You will want to talk with a lawyer to get some guidance to ensure you are on the right path and making the best decisions for you. After reviewing your financial situation, your assets, and your income stream you will be able to make the best decision. Make sure all your questions are answered before going ahead, though.
By: Caitlina Fuller
Article Directory: http://www.articledashboard.com
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Arizona Bankruptcy Attorneys and the ABCs Of Chapter 7 Bankruptcy
Arizona Bankruptcy Attorneys and the ABCs Of Chapter 7 Bankruptcy. Arizona bankruptcy law does vary from federal bankruptcy laws. Contact an Arizona bankrupcy attorney to ensure you understand how those differences may affect you and your potential bankruptcy.
We have all heard about bankruptcy, but not many of us know the details. There are four types of bankruptcy but we will be discussing Chapter 7 bankruptcy. This type of bankruptcy is basically liquidation where the debtor hands over all assets so they may be sold and the resulting cash may pay off the creditors. Once this occurs then all the debts that are dischargeable will be discharged in a time frame of about four months. Most people who file chapter 7 bankruptcy do so when they don’t have any assets to speak of so there really is nothing to sell off or lose and there is a fast start to a new life with no debts.
The reason Arizona bankruptcy lawyers work with people to file Chapter 7 bankruptcy is to help people get out from under the burden of their debts. Fortunately, if you are in debt so far over your head that you can’t handle the stress anymore then consider consulting Phoenix bankruptcy lawyers to help you get out of the mess. Once you contact a lawyer they will be able to walk you through the process of filing for bankruptcy and eliminating your debts almost immediately. There are several reasons why people file for bankruptcy and they include large expenses that are completely unexpected that place an unusual burden on the individual as well as overextended credit, marital problems like divorce, as well as unemployment and medical expenses that are too much to pay.
A study conducted by Harvard showed that at least half if not more of US bankruptcies were a direct result of medical bills. This may happen to you because nobody knows what the future holds and accidents happen every day. So, don’t worry too much if you have to file bankruptcy because you will eventually be able to rebuild your credit.
Many banks are now responding to the many Americans who have filed bankruptcy and helping them rebuild their credit. Secured credit cards are simply credit cards that are secured by an amount of money as a guarantee. So, if you paid a security of $200 then your credit would be $200. As you prove your ability to pay then your credit is increased slowly but surely and your credit score increases over time. Amazingly, two years after a bankruptcy has been discharged debtors are frequently given mortgage loans that have equally good terms as others in the same financial situation who have never filed bankruptcy.
By: Caitlina Fuller
Article Directory: http://www.articledashboard.com
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Dealing With Your Home When Bankruptcy Looms
Dealing With Your Home When Bankruptcy Looms
Arizona Bankruptcy Attorneys presents the following thoughts about bankruptcy and your home. Remember, Arizona bankruptcy laws differ from federal bankruptcy laws so you should contact a bankruptcy attorney in your area for detailed information.
Deciding to go bankrupt
For most people, bankruptcy is the final course of action in dealing with serious debt problems once all other alternatives have been exhausted. Despite the negative connotation BANKRUPTCY is an excellent solution because it immediately removes the burden of serious debt. However, the biggest potential loss when bankruptcy is declared is undoubtedly your home. That is, if you own a home. For most people their home is their largest and most significant asset. It is usually fear of this loss that prevents thousands of people from declaring bankruptcy when they should. Many debt management companies exploit this fear in order to keep debtors in debt management plans which have no long-term benefit for the debtor. Of course, bankruptcy can never be an easy decision for anybody with financial problems; however, if it is the best option available to help a debtor regain their financial freedom then it should be pursued.
If bankruptcy is the only option available then, as a homeowner, they must sell their home and use any profits to reduce their debts before declaring bankruptcy. But what if the homeowner cannot sell his home? This is a situation that is very likely in our current housing market climate, yet a homeowner could simply hand over the keys to the mortgage company and move out. As we all know moving out like this represents the unthinkable for homeowners. If moving out in a financial crisis was that simple then many eviction companies would be out of business.
Now, if any homeowner is in this position they should be aware of the limited actions they can take to protect their property. Before I explain the options available in keeping and or staying in a property when declaring bankruptcy, it is important to understand what happens to a property in bankruptcy.
The Impact on Property
When a homeowner declares bankruptcy, technically the ownership rights or the ‘title deeds’ of the homeowner will be transferred to the courts/trustee. This simply means that the courts will automatically become the new owners of the property, therefore giving them the right to sell the home. It is the proceeds of any eventual sale that will be shared out amongst the creditors. However, before this happens there is a 12 month period of grace during which the bankrupt homeowner has the opportunity to find a new home or salvage his home through a third party.
For a jointly owned property, where, for example, a male spouse is the only person declaring bankruptcy, it will be only his portion of ownership that is transferred in bankruptcy. The spouse’s partner is not technically affected with regard to her share of the home; however, she will be affected if the trustee decides to sell the house after the 12 month period of grace. The trustee can use the law to force a sale in order to cash in the spouse’s share of the property for his creditors.
Options for the homeowner
Because the main consequence of bankruptcy is the loss of highly valuable saleable assets, it is incredibly difficult to safeguard them. Therefore the two options I will proffer in helping you safeguard your property are weak however they could be advantageous, depending upon your situation. The first option is called the sale and rent back option. It is a very simple solution: you sell your property to an investor and then rent it back so you don’t have to move out and incur the extra cost of finding a new home. Again any profits from this deal should be used to reduce your debts. This solution should be pursued before you declare bankruptcy because it will be difficult to use this solution once you are bankrupt. The reason for this is because the value of the home at which you get this deal will usually be well below the market rate. The Trustee in bankruptcy cannot sell the bankrupt property below market rate because his interest is to get as much money as possible from the sale to satisfy creditors.
Another option is to ask the court when bankrupt to sell the property to a family member or a third party who has the resources to help you. This can help ensure that you stay in your home albeit with a different and or familiar owner. Therefore if the opportunity arises to buy back the property in the future, it will be possible. If you are thinking of transferring your house to family or friends before going bankrupt, forget it, because the bankruptcy laws give the trustee the power to look into gifts or assets transferred below market value. Assets transferred between 5- 7 years before declaring bankruptcy may be immune from this scrutiny, however, a recently transferred asset will sound alarm bells and raise suspicions that could lead to a criminal prosecution if it is discovered that you are not being completely truthful about your financial affairs.
I acknowledge that the solutions put forward are not guaranteeing foolproof protection for your home; however, one presents the opportunity of buying back your home in the future. The other also provides you with the choice of staying in your property rather than uprooting your family from your home and your children from their local schools. At the very least they provide the illusion that you still own your property.
12 Month Grace Period
Another question that might arise may be what happens if or when the 12 month period of grace elapses? What if the property cannot be sold? In answer to the first question; the trustee will start to look for a preferred buyer, and if the property cannot be sold a charge will be put on the property until it is so, although it is important to note the that ownership can revert back to the bankrupt debtor after a certain number of years if it is not sold; however, this is very unlikely.
For any homeowner looking to declare bankruptcy, seek professional advice first. The action you take prior to declaring bankruptcy is extremely important, since it may help in speeding up the administration process and also help you when presenting your bankruptcy petition. Bankruptcy is not the end of the world but rather a way to clear away current financial problems and create the opportunity to start afresh. Therefore the sooner you take action and declare bankruptcy, the earlier you will be released from the burden of serious debt.
By: Paul Odunaiya
Article Directory: http://www.articledashboard.com
Paul Odunaiya is an insolvency specialist and the managing director of Qsolvency LTD, which trades as online-debt-advice.co.uk. Paul has over 5 years’ experience in helping individuals and businesses in financial difficulties navigate their way out of serious debt.
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Buying A Home After Bankruptcy
Buying A Home After Bankruptcy
By: Kevin Chern, J.D.Arizona Bankruptcy Attorneys presents the following article on buying a home after bankruptcy. Contact a bankruptcy attorney in your area to better understand what bankruptcy entails. There are so many fears about bankruptcy that it is vital to have sound legal representation to understand all of your options.
It’s true that most lenders will see you as a credit risk immediately after bankruptcy, but that doesn’t mean you won’t be able to buy a home. Home loans are somewhat less risky for lenders than unsecured loans (like credit cards or personal signature loans) because the lender will have your home as security.
Even so, every reputable lender wants to be able to expect that a loan will be repaid as scheduled. Fortunately, your credit score is based more heavily on your recent track record than the more distant past. That means that if you can start rebuilding your credit quickly after bankruptcy, control your expenses, and start showing a strong payment history, you won’t look like such a risk to those creditors.
Some studies suggest that within 18-24 months after a bankruptcy discharge, you can qualify for a loan on the same terms you would have received if you had not filed bankruptcy. In other words, most lenders will be much more interested in your down payment, the stability of your income, and the relationship between the loan payments and your monthly income than in your past financial troubles.
In shopping for a home, here are some general rules you should follow:
Shop around for everything as carefully as you do for the house itself. Your home is likely to be the largest investment you’ll ever make, so it pays to be a smart shopper. Comparison shop for your mortgage and your real estate broker as well as your home. And don’t base your decision solely on the interest rate: factors like the amount of the down payment, the length of the loan, insurance requirements, and associated costs and fees can be just as important.
Use a mortgage broker–an independent contractor who works with several different lenders to find the best loan for you. A mortgage broker has two important things that you may not: professional expertise and direct access to hundreds of loan products. That means a mortgage broker can help you find the most efficient and cost-effective method of financing for you. Mortgage brokers have also pioneered the "subprime" credit market, using innovative loan programs to allow borrowers who have previously filed for bankruptcy to start enjoying the benefits of home ownership.
Look for cash-back deals. Despite what you may have heard, real estate brokers’ commissions are not set in stone. The real estate brokerage industry is competitive, and many brokers and real estate web sites offer cash-back or rebate programs if you agree to work with their preferred real estate agents. You may be able to save thousands of dollars on commissions with these programs.
If you’ve filed bankruptcy and you want to purchase a home, the bottom line is that you have to do your homework. That means rebuilding your credit, but it also means taking the time to research your options and get the best loan and the best terms for your particular situation. If you make that investment, you may be pleasantly surprised with your ability to buy the home you want after bankruptcy.
About The Author
Attorney Kevin Chern is President of Total Bankruptcy and former managing partner of the largest consumer bankruptcy law firm in the United States. His book, ‘Life After Bankruptcy,’ shows former debtors how to preserve their ‘fresh start’ after bankruptcy.
(C) 2006, Total Bankruptcy, Inc.
This article may be reproduced in its entirety without limitation and without notice, except that any reproduction must include the entire article, which may not be modified in any way, and must include the author bio information contained herein, including the URL and, if published online, a live link to the URL included therein.
This article was posted on February 20, 2006
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Bankruptcy Myths Busted
Bankruptcy Myths Busted
Arizona Bankruptcy Attorneys presents the following article that helps to debunk some of the common bankruptcy myths. If you want more information on these issues, or have other concerns, contact a bankruptcy attorney in your area to get more information. Bankruptcy, while seemingly scary, is a process that you can easily navigate with the right legal representation.
The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy’s ability to dissolve debt and give the debtor a fresh start. Some of the information you might have heard is correct, but some is not. The purpose of this article is to dispel some of the most common bankruptcy myths.
1. Even if I file for bankruptcy creditors will still harass me and my family.
This is absolutely false. Bankruptcy law provides for an automatic stay. Simply, as soon as you file for bankruptcy a hold is put on all your outstanding debts and any creditor attempts to collect those debts. The law prohibits a debtor to attempt to collect, possess, or even contact the debtor in regard to the debt. If a creditor does not follow the rules, the debtor may have an action in the form of punitive damages. Basically, punitive damages are meant to punish a creditor for not following the procedures set out in the bankruptcy code. Whether a debtor has a cause of action against a creditor should be left to an attorney to answer. However what you need to know is this; once you file for bankruptcy, creditors must leave you alone or suffer the consequences.
2. If I file for bankruptcy it may cause more family troubles than I already have, maybe even divorce.
This is also false. There are two ways a debtor can file for bankruptcy voluntary and involuntary. Voluntary filing is done by the debtor. The debtor talks to an attorney or files a petition pro se and gets the bankruptcy process started. In an involuntary bankruptcy, the creditor forces the debtor into bankruptcy often times unwanted by the debtor. Voluntary filing is the result of a family discussing their options with each other and possibly an attorney and making an informed decision on the merits. Divorce is often associated with a bankruptcy with the latter filing. Voluntarily filing for bankruptcy gives the debtor a chance to set his terms and allows the debtor a free choice for the bankruptcy.
3. If I file for bankruptcy the trustee will seize all of my assets and sell them to settle my debts with creditors.
Again this is false. While it is one of the duties of a trustee to sell assets in the estate, the trustee cannot necessarily reach all of your assets. There are many factors that must be examined before this happens. The type of bankruptcy as a lot to do with how much the trustee can seize. For example, a chapter 13 is a reorganization bankruptcy. Simply, the debtor keeps the majority if not all of his assets, and forms a repayment plan to satisfy interested creditors. Even in a chapter 7 filing the debtor gets to keep many assets. These are called non-exempt assets. The debtor’s house, car, clothing, furniture, life insurance, etc. are all non-exempt assets. These are just a few of the main assets. An attorney will be able to arm you with the information you need to keep even more personal property a debtor thought possible.
4. If I file for bankruptcy now, I will never be able to file again.
Surprise, this too is false. Filing for bankruptcy does not make you ineligible to file again. Without going into too much detail, just know the bankruptcy code allows a debtor to file for bankruptcy more than once. There are a few things different most importantly possibility of discharge, however you can file for bankruptcy again if you already have filed.
5. If I file for bankruptcy I will never get credit again.
This is simply false. If this were true then nobody would file for bankruptcy. Americans depend on credit and this is no different than a debtor who has filed for bankruptcy. Several banks now offer credit on a secured basis to potentially risky customers. The debtor would put up a small amount of money so as to secure payment in the future. Once the debtor proves his ability to pay, credit limits get higher. As little as two years after a chapter 7, a debtor is eligible for mortgage loans on terms equal to someone who has not gone through bankruptcy. Creditors look more to a debtors stability, as opposed to the fact you filed for bankruptcy.
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