110 likes | 239 Views
10 Myths About Filing Bankruptcy. France Law Group , LLC 419.725-9300 www.bankruptcy-toledo.com. Myth #1 Successful people don’t file for bankruptcy!. Everybody faces unexpected financial challenges Celebrity Bankruptcies Stephen Baldwin Donald Trump Henry Ford Kim Basinger
E N D
10 Myths About Filing Bankruptcy France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #1Successful people don’t file for bankruptcy! • Everybody faces unexpected financial challenges • Celebrity Bankruptcies • Stephen Baldwin • Donald Trump • Henry Ford • Kim Basinger • Abraham Lincoln • Walt Disney • Larry King • Willie Nelson • Dorothy Hamill • Burt Reynolds • Rembrandt France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #2After bankruptcy, I will never get credit again! • You will likely receive many post filing credit offers. • You can’t file Chapter 7 again for 8 years • Your debt levels post-filing are likely very low. • TIP:Be choosy, read fine print, wait • Beware of auto dealers & credit cards offering high interest rates. • As time passes, your credit score will improve and you may become eligible for lower credit interest rates. France Law Group, LLC 419.725.9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #3I will lose my home & car if I file bankruptcy! • Many debtors are able to keep cars & home • Chapter 7 is liquidation, however exemptions exist to help debtors protect certain assets. • Helpful Tips: • Stay current on home/car loans • Let your attorney know about any equity in your home or car. France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #4Bankruptcy is on my credit report for 8 years! • No specific law requires a time period for bankruptcy to remain on a credit report. • Varies by credit reporting agency • Individual creditors view bankruptcy differently France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #5:I should wait to file until my divorce is finalized! • Court filing fees are per case, not per person • Filing as married couple will save an extra filing fee • OK to file separately • OK to file when married, but living separately too. • TIP: Divorce decrees trump Bankruptcy • Be mindful of what you promise in divorce decree France Law Group, LLC 419.725.9300 vvwww.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #6I cannot file a bankruptcy for another 8 years! • If you can’t wait, other options may be available • 8 year waiting period between Chapter 7 filings • Time begins accruing on filing date • Options(during interim period) • Chapter 13 bankruptcy (repayment plan) • Creditor negotiations France Law Group, LLC 419.725-9300 www.toledo-bankruptcy.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #7Chapter 13 is better for my credit rating! • There is no proof that either Chapter 7 or Chapter 13 is better for your credit rating. • TIP:Ask your attorney whether a debt consolidation plan is appropriate? This may affect your credit score differently. France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #8Only irresponsible people file bankruptcy! • Bankruptcy laws are here to help you recover from periods of hardship. • Common reasons why people file bankruptcy • Medical • Job Loss • Home Foreclosure • Divorce France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #9Student loans are dischargeable. • Generally, debts owed to government are NOT dischargeable • Student loans • Taxes • Overpayment of Benefits • Court fines/costs • Restitution • Narrow exception pertaining to student loans exists. • Extreme hardship cases France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.
Myth #10 I automatically qualify for Chapter 7. • Not everyone qualifies for Chapter 7 • Your attorney will examine your current household budget and the last 6 months of paystubs to determine eligibility. France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.