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Five Bankruptcy Myths

If you have access to the internet, you have access to a world of knowledge. But sometimes the data found on websites, social media, and reports by the media is incomplete or inaccurate. The worst thing you can do when trying to make a major decision is to base that decision on misinformation. And while it is not a bad thing to do a little research on your own, it is always best to take that research to a trained professional before taking action. Just like you would not look up how to perform an appendectomy, and then do it yourself, you should also not look up information on bankruptcy and take them at face value.

When your money is at stake, take the extra step to meet with a knowledgeable legal professional, and then partner with that person for help. If you do, you will avoid falling prey to these five bankruptcy myths:

● You can decide which debts are included in your bankruptcy: this is not true, and while it might seem like a good idea to stay in the good graces of one or two of your lenders so you can borrow from them later if need be, you do not get to leave any creditors out of your filing. All of your debts have to be listed when you file a bankruptcy case.
● You can keep your stuff without paying for it: anything you want to hang on to, like your house or car, still has to be paid for; even in bankruptcy. If you do not pay, the lender has the right to enforce their lien rights and take back the property.
● You will not be able to get a loan if you file bankruptcy: most people receive offers of credit within months after their case is final. The key is to only accept what you can pay, and understand that the terms will not be as favorable as they once were. You can expect to get loans and credit at a higher rate than before, and this is why it is so important to only borrow what you can repay.
● You get to pick what type of case you get to file: the Bankruptcy Code was overhauled in 2005, and now there is a mathematical computation that has to be done before you file, and the results dictate what chapter of case you are eligible to file.
● If you file once you are not allowed to file again: the rules are strict, and you might not get to file the type of case you had in mind, but you are allowed to file bankruptcy more than once.

A lot of people also have concern over their credit, and the damage done by filing bankruptcy. The truth is your credit can rebuild quickly, especially if you stay current on the debts you do intend to keep paying after your case.

For more information about bankruptcy, contact us at We will help by coming up with solutions that work for you.

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