When you are stuck in a bind and unable to pay your creditors, filing for bankruptcy can provide a fresh financial start. However, how much of your debt actually disappears? How much time does it take before you are eligible to apply for another credit card? While filing for bankruptcy is more common today that it once was, answers to these questions continue to remain unclear. This ambiguity is largely a product of the many myths existing about the benefits and pitfalls bankruptcy has on your livelihood. To be sure, it is highly recommended that you contact an experienced bankruptcy lawyer who can clearly outline how bankruptcy affects you and explain your rights when filing for bankruptcy.
Common bankruptcy myths
The following are some common bankruptcy myths :
- Myth #1: When you file for bankruptcy, all your previous debts are wiped out.
- Truth#1: Although many of your debts are wiped out when you file for bankruptcy, some debts still remain, such as student loans, alimony and child support.
- Myth#2: After you file for bankruptcy, you can forget about ever restoring your credit.
- Truth #2: You maybe surprised at how quickly you start receiving offers for secured credit cards. After making payments for a period of six months to a year, you are eligible to receive a regular credit card.
- Myth#3: If you file for bankruptcy, you lose all of your property.
- Truth #3: Every state allows certain property exemptions from bankruptcy, such as your home or automobile. Some states allow you to select either federal law exemptions or state law exemptions. California does not allow you to choose – you must use the California exemptions. Under certain conditions, you may be able to keep your home or automobile.
- Myth#4: If you purchase a variety of goods right before filing for bankruptcy, these debts are cleared upon filing a petition
- Truth#5: Charges made right before filing a bankruptcy petition are not discharged. Rather, they are considered fraud.
Call us today for an experienced bankruptcy lawyer in California
If you are considering filing for bankruptcy and want to know your rights, you should consult with a Los Angeles bankruptcy attorney. Our lawyers at the Law Office of Michael Jay Berger can advise you on your bankruptcy filing options. Call the firm today at 213.236.3586 to schedule a consultation.