Certain types of debts cannot be discharged or erased. They include child support and alimony, student loans, and debts incurred as the result of fraud.
This is a misconception that keeps people who should file for bankruptcy from doing it. While the bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), and money in qualified retirement plans, household goods, and clothing.
Not true. Before long, you will get credit card offers again. They will just come from lenders that will charge very high interest rates. We do not advise our clients to run up a lot of bills, but if you need to get an automobile you will have access to get credit. Also, if you have a credit card with a zero balance on the day you file for bankruptcy, you do not have to list it as a creditor since you do not owe any money on it. That means you might have the ability to keep that card even after the bankruptcy.
Not necessarily. It often happens that one spouse has a significant amount of debt in his or her name only. However, if spouses have debts they want to discharge on which they share liability, they should file for bankruptcy together. Otherwise, the creditor will simply demand payment for the entire amount from the spouse who did not file.
It is not difficult, but we highly recommend that you hire an attorney, like Attorney Kevin Mack, to make sure that it is done right.
Most people file for bankruptcy after a life-changing experience, such as a loss of job, a serious illness, or a divorce. They have struggled to pay their bills for months and just keep falling further behind.
This is a commendable sentiment. After a bankruptcy, you no longer have an obligation to repay them, but you would always have that opportunity. If your conscience bothers you because you did not pay your debts, nothing in the bankruptcy code prevents you from doing that once you get back on your feet. However, bankruptcy is an all-or-nothing deal, so you must include all your creditors in the petition.
Generally speaking, this is true; however, exceptions exist. To have a chance of success, you have to file all your returns and the taxes owed need to be at least three years old.
The truth is, you can only file for Chapter 7 bankruptcy once every eight years. For Chapter 13 reorganization, you can file more often than that, but you cannot have more than one case going at one time. Still, it is not very good to make filing bankruptcy a habit.
This is not a good idea. It is called fraud and bankruptcy judges tend to frown upon it. The trustee in your case will review all your purchases right before your filing, and the trustee knows what to look for to find fraud.
Unless you are famous or a prominent person, and the media picks up the filing, probably the only people who will know about a filing are your creditors. While it is true that bankruptcy is a public legal proceeding, so many people file, that publications do not have the space, or inclination to publish all of them.