Author Box
Articles Categories
All Categories
Articles Resources

Don't Believe Everything You Read About Filing Bankruptcy

January 22, 2012 | Comments: 0 | Views: 109

With a large number of Americans filing for bankruptcy every year, it's no surprise that bankruptcy is getting a bad rap online. There are many websites on the Internet trashing filing bankruptcy and how it will ruin an individual's life forever. To me it seems suspect, because the source of the information is not coming from individuals after filing for bankruptcy. If there were blogs that had individual stories about how an individual wished they never filed for bankruptcy it might be a little more believable. Being suspicious, I am beginning to believe that the credit industry or debt settlement companies are behind all the negative filing bankruptcy talk. If they could make common folk believe that filing bankruptcy will ruin their life forever, they will be able to keep these people in bondage for the rest of their lives making interest payments for the rest of their lives and never getting out of debt.

One common myth that is seen on many of these websites is that the individual filing bankruptcy will never get credit again. Quite the contrary, considering that filing bankruptcy wipes out debt, a person after a bankruptcy filing will have better debt ratios and be actually capable of taking on more debt. Technically, based on the numbers an individual that is debt free, post bankruptcy filing, should be more attractive to creditors compared to an individual that has their credit cards maxed out and is only making minimum payments. I had a bankruptcy attorney tell me a story of how many of their clients have been flooded with credit card offers shortly after the bankruptcy discharge. Although it's available, it's not a good idea to get sucked back in to financial drama immediately following filing bankruptcy. Before a person takes on any new debt after filing, they should consult with their bankruptcy attorney to see what they think about it. Typically, it's a good idea to just enjoy being debt free and away from all the creditor harassment. Why would anyone want to immediately throw themselves back into the frying pan?

Another myth that creditors want debtors to believe is when they file for bankruptcy a big truck will roll up and take everything they own and sell it at auction to pay their debts. Once again, this falls under crazy talk. First of all, when an individual files for bankruptcy, the bankruptcy attorney will protect as many assets as possible using bankruptcy exemption laws. In fact, in today's weak economy, rarely does an individual lose anything when filing for bankruptcy. If property is non-exempt, the bankruptcy trustee will have to weigh the cost versus reward of selling the non-exempt property. Sometimes it will take more time and effort to sell an item than what can be recovered from it. In this situation, the bankruptcy trustee will usually just let it go. This is another example of why it's important to have a bankruptcy attorney to represent the debtor. The bankruptcy attorney will have experience working with the local court district and know what's expected and what's allowable.

The author is a professional that formed FilingBankruptcyNow.Com which provides information for debtors considering filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy and helps individuals stop foreclosure and eliminate their debt by putting them in touch with a local bankruptcy attorney.

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Filing Bankruptcy

,

Bankruptcy Attorney

,

Bankruptcy Filing

,

Filing For Bankruptcy

,

File For Bankruptcy

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 564

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Many people that are considering filing bankruptcy typically look at every alternative in an effort to avoid the process. There is so much bad press out there on the damage it does to one's credit

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall June 11, 2012 lViews: 177

Lately, the topic of filing bankruptcy has become commonplace in social circles. Everyone, rich or poor, probably has someone in their neighborhood that is filing bankruptcy and facing foreclosure.

By: Bob P Jonesl Finance > Bankruptcy Personall May 29, 2012 lViews: 173

Recently, the student loan crisis has made its way to the front and center of the media. Currently, the student loan debt in the United States has surpassed an incredible $1 trillion and with no end

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 163

If you are currently bankrupt we explain what happens if you receive an inheritance payment from a will or trust. As a bankrupt person, if you receive any kind of windfall, this money must be paid to

By: James Fallal Finance > Bankruptcy Personall May 24, 2012 lViews: 243

Ever since the economy turned south back in 2008, many Americans are facing severe financial woes. Many of these usually hard-working folks are now unemployed or have had to settle for a lower form

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 173

Bankruptcy isn't just caused by excessive shopping. Three of the biggest reasons Americans are filing bankruptcy are medical debt, job loss and unexpected expenses due to an act of nature.

By: Chris A. Harmenl Finance > Bankruptcy Personall May 21, 2012 lViews: 184

Many people that are considering filing bankruptcy typically look at every alternative in an effort to avoid the process. There is so much bad press out there on the damage it does to one's credit

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall June 11, 2012 lViews: 177

In today's tough economic climate many people are being forced to have an education about filing bankruptcy. For some, it's because they need to file for bankruptcy to eliminate debt and for others

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall May 18, 2012 lViews: 169

Over the last 10 years, there has been a new bubble being created right under our noses. As Americans, we put a higher priority on getting an education and along with that come student loan debt.

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall May 09, 2012 lViews: 165

As Americans continue to struggle with a difficult economy, many people are turning to filing bankruptcy as a way out of overwhelming debt. Prior to 2005 and the bankruptcy code changes most people

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall May 09, 2012 lViews: 147

It was recently reported that the student loan debt bubble was close to surpassing the $1 trillion mark. For people that don't know how much money 1 trillion dollars is, it's about $3000 of debt for

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall April 18, 2012 lViews: 143

People that are overwhelmed with massive debt are usually under tremendous stress. So why is it that people tend to struggle with the decision to file bankruptcy often for many months or even years

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall April 16, 2012 lViews: 140