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Ley de Quiebras 1. Everyone will know I've filed for bankruptcy Unless you are a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors. While its true that bankruptcy is a public legal proceeding, the number of people filing is so massive that very few publications have the space, manpower, or inclination to run all of them. 2. All debts are wiped out in Chapter 7 Bankruptcy You wish. Certain types of debt cannot be discharged (erased). They include child support, alimony, government-issued or government-guaranteed student loans, certain fines and taxes, debts incurred as a result of fraud, and intentional torts. 3. I'll lose everything I have This is the misconception that keeps people who really should file for bankruptcy from doing it. People think the government will sell everything they have and they'll have to start over in a cardboard box. You have what are called exemptions for most of your property. Pensions as well as IRA's are protected. If you do however have valuable assets which are valued over your exemption, you would not file a Chapter 7 but instead a Chapter 13, which is a non- liquidating bankruptcy. 4. I'll never get credit again Quite the contrary. It won't be long before you're getting credit card offers again. There are innumerable companies that will provide credit to you.. "I don't advise any of my clients to run out and run up the bills again, but if someone needs an automobile, they can go and will be able to credit. You don't have to go underground or something to get money. Also, if you have a credit card with a zero balance on the day you file for bankruptcy, you don't have to list it is a creditor since you don't owe any money on it. That means, you might be able to keep that card even after the bankruptcy. Most clients ask me "if I file bankruptcy, will I ever be able to buy a house?" I always answer that question with "If you don't file for bankruptcy, you will never be able to get a house." What lender would give you a mortgage loan with $50,000 of credit card debt? FHA and VA guaranteed mortgage loans are given to individuals one year after receiving their discharges. 5. If you're married, both spouses have to file for bankruptcy Not necessarily. "It's not uncommon for one spouse to have a significant amount of debt in their name only.". However, if spouses have debts they want to discharge that they're both liable, they should file together. Otherwise, the creditor will simply demand payment for the entire amount from the spouse who didn't file. 6. Only deadbeats file for bankruptcy Most people file for bankruptcy after a life-altering experience, such as a divorce, a loss of employment, or a serious illness. They've struggled to pay their bills for months and just keep falling further behind. It is nothing to be ashamed of. Over 2 million people filed bankruptcy in 2005. In fact, the concept of bankruptcy comes from the bible: In the Old Testament Deuteronomy Chapter 15 it states, "At the end of every seven years...every creditor shall release that which he hath lent unto his neighbor; he shall not exact it of his neighbor and his brother; because the Lord's release hath been proclaimed." 7. I don't want to include certain creditors in my filing because its important to me to pay them back someday and if the debt in discharged, I can't ever repay them. Bless you for even thinking about such a thing. You're no longer obligated to repay them, but you always have that opportunity. If your conscience won't let you sleep at night because you didn't pay your debts, there is nothing in the bankruptcy code that prevents you from doing that once you're back on your feet. 8. You can't get rid of back taxes through bankruptcy. Not true. The taxes owed must be more than 3 years old, the returns must be filed more than two years before you file the bankruptcy and the tax had to be assessed more than 240 days before you filed. 9. You can only file for bankruptcy once. You can file for bankruptcy more than once, but the bankruptcy law that went into effect in October 2005 lengthened the required wait between filings. You can only file a Chapter 7 bankruptcy once every eight years. You have to wait two years to re-file a Chapter 13 filing and four years between a Chapter 7 and a Chapter 13 case. 10. I can max out all my credit cards, file for bankruptcy and never pay for the things I bought That's called fraud and can result in a denial of your discharge. The trustee in your case will review all your purchases right before your filing. The trustee knows what to look for.
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