10 myths about filing bankruptcy
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10 Myths About Filing Bankruptcy. France Law Group , LLC 419.725-9300 www.bankruptcy-toledo.com. Myth #1 Successful people don’t file for bankruptcy!. Everybody faces unexpected financial challenges Celebrity Bankruptcies Stephen Baldwin Donald Trump Henry Ford Kim Basinger - PowerPoint PPT PresentationTRANSCRIPT
10 Myths About Filing
Bankruptcy
France Law Group, LLC419.725-9300
www.bankruptcy-toledo.com
We are a debt relief agency. We help people file for relief under the bankruptcy code.
Everybody faces unexpected financial challenges
Celebrity Bankruptcies Stephen Baldwin Donald Trump Henry Ford Kim Basinger Abraham Lincoln Walt Disney Larry King Willie Nelson Dorothy Hamill Burt Reynolds Rembrandt France Law Group, LLC
419.725-9300 www.bankruptcy-toledo.com
Myth #1 Successful people don’t file for bankruptcy!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
You will likely receive many post filing credit offers. ◦ You can’t file Chapter 7 again for 8 years◦ Your debt levels post-filing are likely very low.
TIP: Be choosy, read fine print, wait◦ Beware of auto dealers & credit cards offering high interest rates.◦ As time passes, your credit score will improve and you may become eligible
for lower credit interest rates.
France Law Group, LLC 419.725.9300 www.bankruptcy-toledo.com
Myth #2 After bankruptcy, I will never get credit again!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
Many debtors are able to keep cars & home◦ Chapter 7 is liquidation, however exemptions exist to help debtors
protect certain assets.
Helpful Tips:◦ Stay current on home/car loans◦ Let your attorney know about any equity in your home or car.
France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com
Myth #3 I will lose my home & car if I file bankruptcy!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
No specific law requires a time period for bankruptcy to remain on a credit report.◦ Varies by credit reporting agency◦ Individual creditors view bankruptcy differently
France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com
Myth #4Bankruptcy is on my credit report for 8 years!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
Court filing fees are per case, not per person ◦ Filing as married couple will save an extra filing fee◦ OK to file separately◦ OK to file when married, but living separately too.
TIP: Divorce decrees trump Bankruptcy◦ Be mindful of what you promise in divorce decree
France Law Group, LLC 419.725.9300 vvwww.bankruptcy-toledo.com
Myth #5: I should wait to file until my divorce is finalized!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
If you can’t wait, other options may be available◦ 8 year waiting period between Chapter 7 filings◦ Time begins accruing on filing date
Options (during interim period)◦ Chapter 13 bankruptcy (repayment plan)
◦ Creditor negotiations
France Law Group, LLC 419.725-9300 www.toledo-bankruptcy.com
Myth #6 I cannot file a bankruptcy for another 8 years!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
There is no proof that either Chapter 7 or Chapter 13 is better for your credit rating.
TIP: Ask your attorney whether a debt consolidation plan is appropriate? This may affect your credit score differently.
France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com
Myth #7 Chapter 13 is better for my credit rating!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
Bankruptcy laws are here to help you recover from periods of hardship.◦ Common reasons why people file bankruptcy
Medical Job Loss Home Foreclosure Divorce
France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com
Myth #8 Only irresponsible people file bankruptcy!
We are a debt relief agency. We help people file for relief under the bankruptcy code.
Generally, debts owed to government are NOT dischargeable◦ Student loans◦ Taxes◦ Overpayment of Benefits◦ Court fines/costs◦ Restitution
Narrow exception pertaining to student loans exists.◦ Extreme hardship cases
France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com
Myth #9 Student loans are dischargeable.
We are a debt relief agency. We help people file for relief under the bankruptcy code.
Not everyone qualifies for Chapter 7◦ Your attorney will examine your current household budget and the last 6
months of paystubs to determine eligibility.
France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com
Myth #10 I automatically qualify for Chapter 7.
We are a debt relief agency. We help people file for relief under the bankruptcy code.