10 TRUTHS ABOUT BANKRUPTCY LAW
THAT MAY SURPRISE YOU!
Truth #1 – Married spouses may not have to file bankruptcy.
If you are married and your spouse has established a separate line of credit, it may not be necessary for your spouse to file bankruptcy. In this form of debt resolution, your marital spouse is not financially liable for your separate debt. This way you can discharge your debt through bankruptcy and your family can maintain a good credit rating.
Truth #2 – Most people do not lose their personal property in bankruptcy.
There are provisions within the Bankruptcy Property Code called exemptions that were placed there to protect your property. Although it is true that you may be required to surrender some of your assets, claimants are given provision for retirement, home and autos, a savings account, and household belongings within legal guidelines.
Truth #3 – You can get credit again after filing bankruptcy.
Even before your debts are discharged in bankruptcy you will start receiving offers for credit. A natural consequence of the bankruptcy is that you will probably be at a higher interest rate or down payment until you re-establish your credit. How do you re-establish your credit? By using financial wisdom: limiting your purchases to your income, and paying your bills on time – within the due date and month they are due. Good money management will improve your credit rating after bankruptcy in a relatively short time.
Truth #4 – You will not lose your retirement in bankruptcy.
Retirement accounts such as your IRA, 401(k) and/or other pension plans will be protected from creditors in your bankruptcy. This was reinforced by the Rousey v. Jacoway. Retirement is exempt in bankruptcy. See our blog for more information on exempt assets.
Truth #5 – The need for bankruptcy varies for everyone.
Every debtor’s situation is unique. For one person $5,000 worth of debt may be manageable. For another debtor $5,000 debt maybe strangling them each and every month and preventing them from feeding their family or caring for themselves. Don’t go further into debt without considering all of your options, call us today at 530-221-2640 for a FREE Fair Debt Collection (FDCPA) Bankruptcy Consultation.
Truth #6 – Bankruptcy does not mean you are a failure.
Lots of famous and now wealthy people have made their greatest comebacks after filing bankruptcy! Did you know that Walt Disney and Laugh-o-Gram Films were forced into bankruptcy in October 1923? Walt lost the rights to Oswald the Lucky Rabbit. At that point Walt thought his career was over and he along with his wife moved to California. Walt took Oswald, gave him a “fresh start” and created Mickey Mouse. The rest is history. Walt and many others including President Harry Truman looked to the courts for assistance through bankruptcy to get their financial life back on track.
Truth #7 – Chapter 7 is still available to many debtors.
Many people still qualify for Chapter 7 bankruptcy. The only way to find out if you qualify is to speak to a qualified attorney trained in the new bankruptcy law. Call us today at 530-221-2640 or schedule a FREE Fair Debt Collection Consultation (FDCPA) to find out how the 2005 bankruptcy law changes affect your ability to file for Chapter 7 bankruptcy.
Truth #8 – God says the forgiveness of debt is mandatory.
The Bible gives clear instruction about debt and the forgiveness of it.
Deuteronomy 15:1-2 At the end of every seven-year period you shall have a relaxation of debts, which shall be observed as follows. Every creditor shall relax his claim on what he has loaned his neighbor; he must not press his neighbor, his kinsman, because a relaxation in honor of the LORD has been proclaimed.
Jesus said “forgive and you will be forgiven…”
Truth #9 – Even if you have filed for bankruptcy before you may still qualify for a Chapter 7.
The short answer to the above question is – it depends. It depends on how long ago you filed; was it more than 8 years ago? Did you get a discharge or was your case dismissed? Do you qualify for a Chapter 7 today or would a Chapter 13 be better for you? The only way to know for sure is to speak to a FDCPA Bankruptcy professional.
Truth #10 – Although bankruptcy is public record very few people will actually know that you filed.
Bankruptcy filings are public record. However few people actually read the services that post such information. The statistics currently indicate a higher number of bankruptcies than ever and the numbers keep growing. You will not be alone and in all probability your neighbor filed right alongside you – and neither of you knew! Don’t let the fear of embarrassment stop you from getting the help you need.
