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An average person knows about bankruptcy not much. Many people must think that bankruptcy is an opportunity to get rid of all debts and a possibility for a debtor to get a new start in business and life. You can hear the right information but you also can hear the wrong information. If you want to know more about bankruptcy then read this article which is about the most common myths about bankruptcy.
Myth number one: creditors will keep bothering me and my family even if I file for personal bankruptcy.
This information is very wrong. The law about bankruptcy gives you a stay. To say in other words as soon as you file for personal bankruptcy all your debts are frozen and creditors do not have legal rights to collect the debts. It is forbidden for a creditor to try to collect the debt, to posses and even to get connected with a debtor and to have talks regarding the debt. The creditor will be fined if he/she doesn’t follow the rules. So, keep that in your mind: creditors can not bother you as soon as you file for bankruptcy.
Myth number two: my family will get a lot of troubles if I file for bankruptcy.
This information is wrong too. A person can file for bankruptcy at his/her own will or involuntary. In the case if a debtor files for bankruptcy at his/her own will, the debtor has a talk to an attorney or files a petition without any attorney and this gives a start to the bankruptcy process. In the case when a debtor doesn’t want to file for bankruptcy the creditor is able to force the debtor into bankruptcy. If a debtor files for bankruptcy at his/her own will, he/she usually discusses the possibility with the family and such decisions are usually taken along with the family.
Myth number three: I will have to sell all my assets to repay the debts if I file for bankruptcy.
Wrong information again. It is not necessary that your assets will be sold. Before this happens a lot of factors should be inspected.
Myth number four. I will never be able to file for bankruptcy again.
You will be very surprised but this is a false information again. Filing for bankruptcy is not limited. There are too many details to go into, but if to say in a few words, you should know that according to the bankruptcy code a debtor can file for bankruptcy more than once. So, if you have already filed for bankruptcy in your life you have right to do that again.
Myth number five: I will never get credit if I file for bankruptcy.
This information is very wrong. You just think: no one would file for bankruptcy if it were true! People depend on credit and person who has filed for bankruptcy depends on credit too. There are banks which offer credits to such called “risky” consumers. The only difference is that the debtor will have to pay a little bit to secure payment.
Almost all of us still remember the times when one could easily buy something even if one had not enough money. Credit was a simple way out. It is little wonder that now many of those who applied for a loan, are searching for how to avoid bankruptcy.
People who managed to get into the condition when their expenses exceed their earnings, definitely must look for ways to avoid bankruptcy.
Being in such condition it is smart to use any ways to get over it. Take advantage of such wonderful chance as the web technologies. Using them at full capacity will give great results. Working with search engines, forums, social networks,web sites one will find a number of tips to avoid bankruptcy and a great deal of other respective info. Also subscribing to RSS feed on this blog will help to be aware of new publications and tips on the topic.
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