Claiming Bankruptcy : Know it better
The truth is that these records are very much public and can be accessed by many forever! These records used to be archived in the court records for about twenty years. With the advent of technology, electronic filing has made the maintenance of records for a longer span of time with better accuracy easier and hurdle free. Thus, this makes anyone access your information at any point of time easily.
Claiming bankruptcy is a legal process which has a lot of procedures and formalities. Before filing it, one should be clear about the various avenues available, like for e.g. you should be acquainted with the diverse forms concerned in this process, as required by bankruptcy laws. Furthermore you also require the assistance of a bankruptcy attorney, as the laws are pretty complex. There are a series of chapters under which one can file; the most popular sections are chapter 7 & 13.
There are numerous reasons, why people file for bankruptcy, some of the most common one being as under:
1. To eradicate legal obligation.
2. To avert foreclosures.
3. To prevent assets from being repossessed.
4. Reduction of medical bills.
5. Employment loss.
6. To put an end to creditor harassment.
7. To get an assistance from student loan debt.
8. To stop wage garnishment.
9. To challenge deceitful creditors.
There are a lot of myths and conceptions which people have pertaining to bankruptcy, and we discuss few of them in detail here, which might enable you to clear some of your doubts.
• Others would know that I have become bankrupt: This can only happen only if you have some curious nose-poking relatives, neighbors or friends. The other chance could be that, the media would get it publicized if you are a prominent personality. Though true that it’s a public filing which can be accessed by anyone, but with the massive filings, very few publications have the space or manpower or the interest to reveal all of them.
• All the debts cannot be discharged off by bankruptcy, for e.g. child support, alimony, government – guaranteed student loans, and debts incurred as the result of fraudulent acts.
• Many believe that all would be lost due to bankruptcy. Though different states have diverse laws, but few exemptions exist for some assets like home or car etc.
• Some have notions that credit after bankruptcy is a never possible option. But on the contrary it won’t be long when you can easily get credit card after bankruptcy. They’ll be mostly from sub-prime lenders with high interest rates. Again if you have a credit card when you file for bankruptcy with no outstanding on it, you do not require listing it as a creditor, which means you can still keep the card though you have filed for bankruptcy.
• It’s not necessary that if you are married then both the spouses have to file for bankruptcy.
• Bankruptcy filing is not such a tedious process as it is presented to be, if followed systematically.
• Many have the notion that only ‘deadbeats’ file for bankruptcy, which is never true. Many file for it for diverse circumstantial reasons.
• Filing for bankruptcy can never improve your credit rating, as it stays on the credit report for more than 10 years.
• You can easily get rid of back taxes through bankruptcy, which many think can’t happen.
• Many have the notion that one cannot file for bankruptcy more than once, which is not true. Though multiple bankruptcies are bad, but it’s not impossible.
Thus above mentioned are few of the myths that exist among many. Here we have tried to brief on few of them. Though there are many such myths that exists and the list above is not an exhaustive one.
Above all, it is vital that one understands the consequences of bankruptcy before filing for the same. To know more visit http://www.bestdebtcare.com/
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