There are many misconceptions when it comes to
bankruptcy and you need to know them before you go into
this process. You need to take some time to learn the ins and
Many people fear that others will find out the
status of their financial life when they file for bankruptcy but
this is not something that you have to worry about. No one will find
out about you filing for bankruptcy unless you tell them or unless
you are famous.
No matter what you hear not all of your debts
will be wiped clean when you file for Chapter 7 bankruptcy or
Chapter 13 bankruptcy. There are debts that cannot be erased such as
child support, alimony and student loans along with any tax liens
that you may have. And if you have been sued then there is a good
chance that you will still have to pay this money to those
While many people think that they will lose
everything when they file for bankruptcy this is never the case. In
Chapter 7 you will get to keep your residence and your car among
other things and in Chapter 13, as long as you pay according to the
schedule that you set up you will be able to keep just about
everything. Check with your local legislators for exactly what is
exempt and what is not because each state has slightly different
rules for filing bankruptcy.
If your main concern is your ability to get
approved for credit down the line then you need to know that you
will be able to get credit. For a few years you will not get god
rates but in 7 to 10 years you will have completely wiped the
bankruptcy from your credit report. If however you work hard to
rebuild your credit you can get your credit report looking
attractive again long before that.
It is not necessary all of the time for both
partners to file for bankruptcy if they are married. This depends on
the state in which you live and the actual debt that you want
Filing for bankruptcy is not a hard thing to do
but you should not do it without the help of a lawyer who
specializes in bankruptcy law. You cannot afford to make any
mistakes when you are filing for bankruptcy.
Filing for bankruptcy does not make you a bad
person. Filing is something that embarrasses many people but it is
not uncommon for those who have just been through a divorce to file
for bankruptcy or those who have been extremely ill and spent some
time off of work or in the hospital.
For some reason many people seem to think that
when they file for bankruptcy they will be doing their credit rating
and report a favor but this could not be farther from the truth.
Just because you get rid of most of your debt does not mean that
your credit has been restored in fact your credit is going to suffer
when you file for