When it comes to bankruptcy, there's a lot of misinformation floating around. Unfortunately, a lot of this misinformation makes it difficult for people to get the help they need with their debt problems. Bankruptcy wasn't designed to destroy a persons financial future. It was designed as a way for honest people, with unexpected financial problems, to get out from under their debt burdens. If you've suddenly found yourself deep in debt due to medical emergencies, divorce, unemployment, or a myriad of other reasons, you owe it to yourself to speak to an attorney about bankruptcy protection. If you're still concerned about the misinformation you might have heard, here's some help getting to the bottom of it.
New Bankruptcy Laws Made it Harder to Qualify
Bankruptcy laws changed back in 2005. When that happened, a lot of people were lead to believe that the new laws would make it next-to-impossible for honest individuals to seek protection through bankruptcy. Unfortunately, that lead many of those people to avoid seeking bankruptcy protection. Instead, they continued to tread water until their credit was destroyed, and they were being hounded relentlessly by creditors. The fact of the matter is that the new bankruptcy laws didn't make it more difficult for honest people to get bankruptcy protection. The new laws merely require people to pass a "means test" before they're allowed to file for bankruptcy. The new laws also require people to participate in credit counseling. If you're afraid that the new laws will prevent you from filing for bankruptcy, you need to speak to an attorney.
Bankruptcy Courts Take All Your Assets
Another bit of misinformation that often gets passed around is that bankruptcy courts will take all your assets once you file for bankruptcy protection. That's actually not true. Under bankruptcy laws, you're allowed to keep a certain amount of your assets through exemptions. You're also allowed to retain a certain amount of the equity in your home. Don't let the fear of having your assets taken away prevent you from filing for bankruptcy protection. Sit down with an attorney so that they can help you determine what assets you'll allowed to keep.
You Can't Rebuild Your Credit After Bankruptcy
You might have heard that it's impossible to rebuild your credit after a bankruptcy. That's another common misconception when it comes to bankruptcy. While it's true that your bankruptcy will remain on your credit report for about 10 years, you can actually begin rebuilding your credit as soon as your debts have been discharged through the courts. The easiest way to begin rebuilding your credit is to apply for a secured credit can once your bankruptcy is discharged. Just be sure to make all your payments on time. With a little work, you can rebuild your credit in just a couple of years.
Don't let misinformation stop you from seeking bankruptcy protection. Sit down with a bankruptcy attorney, like one from Madden Law Firm The, so that they can help you understand the laws, and how they apply to your current financial situation.
Going through a divorce? I know how you might feel – alone, stressed out, and probably even a little sad due to the loss of the life you have always known. Whether you have children or not, you might even feel a little guilty about the break down of your relationship. But I'm here to tell you that a divorce is not the end of the world. In fact, once you get used to the idea and start to move on with your life, you may find just as much, if not more, happiness than you ever had while you were married! Getting through the proceedings of your divorce in a dignified manner is the first step, and hopefully this website will give you the insight, support, and motivation you need to get through the process as painlessly as possible.