Bankruptcy Myths
What do you think you know? Here are some general answers. Contact J. Brian Allen to set up a consultation to review your case as each case is different.
All debts can be discharged in a bankruptcy filing.
Certain debts such as child support, student loans and most taxes are not discharged.
The car, house and boat can be kept without having to pay off the loans when included in the bankruptcy file.
- You can't keep them without paying the loan. Generally you cannot keep and pay for a boat unless you earn income from using your boat.
- If the vehicle is repossessed and you file before the car or boat is sold you may be able to get it back.
- You have to agree to pay off the loan in order to keep it.
Consumers can file for bankruptcy as many times as they like.
- Some strict limitations have been set by the new law. Debtors will not be able to file Chapter 7 bankruptcy if they've been through a Chapter 7 within eight years of the new filing. If they want to file for Chapter 13, they will not receive a discharge within two years of a previous Chapter 13 discharge and within four years if they were discharged from a Chapter 7, 11 or 12 bankruptcy.
Purchasing a home and obtaining new credit after a bankruptcy is out of the question.
- Each lender varies in their business practices. However, the length of time since the bankruptcy was filed is often taken into consideration by lenders.
A consumer can choose whether to include all their debt in a bankruptcy filing.
- All debts must be listed. Misinformation or neglecting to include certain debts can lead to additional cost and the possible dismissal of the bankruptcy case.
A spouse can proceed with filing for joint bankruptcy without getting the other's permission.
Both spouses must give permission for the filing of a joint bankruptcy. However, only one spouse may file an individual, single filing bankruptcy, without the consent of the non-filing spouse.
My credit will be ruined for 10 years.
- Bankruptcy will appear on your credit history for 10 years and your credit rating may begin to improve as time goes by and you re-establish your credit.
Don’t be mislead! Contact J. Brian Allen and get correct information about bankruptcy.