Misconception 1: Everybody will know you have actually filed or met with Seattle bankruptcy attorneys.
Unless you’re a popular individual or a major corporation and the filing is gotten by the media, the possibilities are very good that the only individuals who will find out about a filing are your creditors and the people who you inform. While it’s true that your bankruptcy is a matter of public record, the number of filings is so enormous, that unless somebody is particularly attempting to locate details on you, there is practically no probability that any individual will even know you submitted. However, telling someone that another person filed bankruptcy is good gossip. Much like informing somebody you heard so-and-so is getting a divorce. So, if you don’t want everybody you know to know you filed bankruptcy, you need to keep the info to yourself. As for newspapers, our experience is that a lot of papers don’t include info about who filed bankruptcy, and even if they did, think of it, who would be interested enough to read that stuff besides Seattle bankruptcy attorneys.
Myth 2: You will lose everything you have.
Absolutely nothing could be further from the reality. The fact is the majority of people who submit petitions through Seattle bankruptcy attorneys do not lose anything. First, while laws vary from State to State, every State has exemptions that secure particular kinds of property. Utilizing Washington as an example, there are exemptions to safeguard such things as your home, your car, your truck, family goods and home furnishings, IRAs, retirement plans, the cash value in life insurance, salaries, and injury claims. There is even a “wildcard” exemption of over $10,000 that can be used anywhere you desire it. Seattle bankruptcy attorneys in particular can use these exemptions to safeguard your property. In those rarer scenarios where you have more building than can be secured by readily available exemptions, there is Chapter 13. In Chapter 13 your Seattle bankruptcy attorneys can even keep this property by paying a higher Chapter 13 plan payment. Second, as mentioned above (Myth2), submitting bankruptcy does not typically eliminate liens. Therefore, if you wish to keep an automobile, truck, home or company devices that works as collateral for a loan, you need to keep paying on the debt. If you make these payments and have exemptions to cover any value above what is owed you can rest assured you will be able to keep these items.
Misconception 3: You will never have the ability to own anything once again.
An unexpected number of people believe this, but this is completely incorrect. In the future you can purchase, own and have whatever you can manage.
Misconception 4: You will never ever get credit once again.
Quite the contrary. Filing with Seattle bankruptcy attorneys eliminates debt and getting rid of debt puts you in a position to handle more credit, and this makes you look more appealing to potential lenders. In our experience, regrettably, it will not be long prior to you’re getting charge card provides once again. I say “sadly” due to the fact that we don’t want you to get right back in debt once again. Initially the potential lenders will want more cash down and will wish to charge you greater rate of interest. However, with time, if you beware, and keep your task, and begin conserving cash, and pay your costs, and do things that will put good marks on your credit report, the quality of your credit will improve and much better. Usually, in our experience, if a client has not re-established excellent credit in 2 to 4 years sufficient to purchase a vehicle or even a home it’s not since they filed bankruptcy. It generally suggests that something else has actually happened after the bankruptcy to hurt their credit.
Misconception 5: Filing bankruptcy will injure your credit for 10 years.
Not true. You are getting 2 completely various principles puzzled with each other. You are getting that bankruptcy is reported on your credit report for One Decade blended with the impact that reporting will carry your credit. Just since something is reported on your credit report does NOT necessarily imply it will have a damaging impact on your credit standing. First, let’s get the main thing exposed. By the time you need to make an appointment to see a bankruptcy attorney your credit is currently messed up, maxed out, or on a clear course to mess up. This being the case, you ultimately have no credit for bankruptcy to hurt. Furthermore, as discussed above, in our experience if you have not re-established great credit in 2 to 4 years after you submit bankruptcy more than likely it has nothing to do with the fact that you once upon a time filed bankruptcy, and it definitely has absolutely nothing to do with that your credit report still reveals an old bankruptcy.
Myth 6: If you’re married … both you and your partner have to apply for bankruptcy.
Not true. Oftentimes where both husband and wife have a great deal of debt it makes sense and saves money for them to both file, but it is never ever a requirement under the law. We have lots of cases where only one partner has actually filed. The good news is that generally if it makes good sense for both spouses to file together they can both apply for the price of one filing.
Myth 7: It’s truly tough to file for bankruptcy.
No it’s not. At least not in the hands of an experienced bankruptcy lawyer. In the hands of an experienced bankruptcy lawyer filing bankruptcy is simple. The choice to file might be hard, once the decision is made the filing part is easy.
Misconception 8: Just deadbeats file for bankruptcy.
Not true. The majority of individuals who file bankruptcy are good, truthful, hard-working individuals, just like you and me, who file as a last resort after months or years struggling to pay the bills that left over from some life-changing experience, such as a divorce, the loss of a job, a failed company endeavor, a serious health problem, or some household emergency, or since they truthfully and erroneously fell into debt at a young age before they understood better, prior to they knew anything about budgeting or how to manage money. Luckily Seattle bankruptcy attorneys can help these victims get relief.
Myth 9: Hiring Seattle bankruptcy lawyers and filing bankruptcy means you’re an enemy, criminal, or villain.
Not real. There’s a factor over 1,000,000 Americans submit bankruptcy each year and it’s not since they’re bad individuals. Great deals of good, sincere, hard-working people fall on tough times. Let’s face it, life can be ruthless and in some cases the cash’s just not there. The bankruptcy laws were produced with this in mind. Making sure you have a way, if requirement be, to obtain devoid of the problem of financial obligation, so that you and your household can have a second opportunity at a “clean slate”.
Misconception 10: Declare bankruptcy will harm your credit.
That’s not real. Take into consideration it. By the time you pertain to a bankruptcy lawyer your credit is already either ruined or maxed out. And if it’s already messed up or maxed out how can bankruptcy harm it? The big surprise for our clients is when we tell them that submitting bankruptcy can in fact help them re-build their credit. Bankruptcy does away with financial obligation and getting rid of debt puts you in a better position to handle brand-new credit if only somebody will give it to you. For that reason, bankruptcy is the primary step in the process of re-building your credit.
Misconception 11: Even if you apply for bankruptcy, creditors will still bother you and your household.
This is NOT true. In fact, nothing could be even more from the truth. The minute you submit bankruptcy, the Bankruptcy Court creates an order telling your creditors to leave you alone. No more telephone calls. No more collection letters. No more lawsuits. No repossessions. No repossessions. Nothing. This order has a name. It is called the “automatic stay”; and it is provided pursuant to 11 United States Code, Section 362. The automatic stay prohibits you from any and all collections actions. After you file bankruptcy, the creditor is not even allowed to talk with you. In addition, the creditor should stop any collection efforts currently started. The automatic stay is extremely effective, and puts the complete weight of the United States Courts to work for you, making sure your creditors leave you alone. If a lender breaches the automatic stay, you have the right to have your Seattle bankruptcy attorneys bring the lender before the Court for Contempt of Court, and to be compensated appropriately. Believe me, Bankruptcy Court Judges do not take kindly to creditors who neglect the automatic stay, and these Judges have been understood to penalize lenders significantly. Really simply, once you file for bankruptcy, lenders should leave you alone or suffer the consequences.
Myth 12: If you declare bankruptcy, it may trigger more family difficulties and might even result in divorce.
This is NOT true. Normally, it works just the opposite. Filing bankruptcy is not the problem. The problem is not being able to pay your expenses. All excellent, honest, hard-working individuals feel a strong need to pay their costs, and not being able to do so triggers them to feel incredible stress. Unless you do something to eliminate this tension, the stress can rapidly develop to the snapping point … the marital relationship snapping point. Bankruptcy is designed to get you out from under the concern of debt, to secure your property and to lower your tension level. If your experience is like that of other couples, you will discover that filing bankruptcy and reducing the stress level can be a crucial primary step in bringing the love and caring back into your relationship, which in turn, offers your marital relationship a fighting opportunity.
Myth 13: You can’t get rid of back taxes through bankruptcy.
We do away with old “earnings” taxes for our clients all the time. By “old” I imply income taxes more than 3 years old. Under the law there are 3 or 4 qualifications that need to be satisfied, but once these are fulfilled these taxes are gone. Please note: Filing bankruptcy does NOT do away with withholding or sales taxes no matter how old they are.
Myth 14: You can only file once for bankruptcy security.
The truth is you can only file for a Chapter 7 bankruptcy every 8 years. But after 8 years, if need be, you can file once more. As for filing a case under Chapter 13 of the Bankruptcy Code, there is no such limitation – though you can only get a discharge once every 4 years. Good Seattle bankruptcy attorneys will also know the time between filing a Chapter 7 to a Chapter 13 and a Chapter 13 to a Chapter 7. Ideally, however, you will never ever have to file more than one bankruptcy.
Misconception 15: You can decide on which debts and building to list in your bankruptcy.
Sorry, but you can’t. Doing so would violate the law. If you file locally, your Seattle bankruptcy attorneys should inform you that its either all of your debts or none of them. Under the law when you file bankruptcy you need to note all your home and all your financial obligations. The majority of people wish to exclude a financial obligation due to the fact that it is their intent to keep paying on it. Fortunately, on this score is that you can achieve the same objective, despite the fact that you need to list the financial obligation. If you want to keep paying on a debt after bankruptcy you can. After bankruptcy you can go back and pay any person you desire. In fact, after you file bankruptcy there are some financial obligations you need to keep paying on. For example, if you have an automobile, truck or home loan, although you note the financial obligation in your bankruptcy, if you want to keep the vehicle, truck or house you need to keep paying on the debt and usually must file a reaffirmation agreement. More notably, you need to understand this. As long as you stay present on the loan and keep the home correctly insured you are secured under the law, and you get to keep the home because under the law the lender is stuck with you and cannot do anything about it.