Recently we posted a list of 8 Bankruptcy Facts to help you separate bankruptcy fact from fiction and misinformation. Since the article received quite a bit of traffic, we’ve put together a list 8 More Bankruptcy Facts to further empower you to understand how bankruptcy can help you get out of debt.
Bankruptcy Facts:
- Bankruptcy law requires debtors to complete debt counseling courses.
Every person (with rare exception) who files for bankruptcy must complete two courses: debt counseling and debtor education. Both courses can be completed online or over the phone. Generally speaking, they are straightforward, inexpensive, and not too time-consuming. These courses serve to educate people and empower them to make wise financial decisions moving forward.
- You cannot max out credit cards with the intention of erasing those new debts through bankruptcy.
Bankruptcy law creates a look-back period on debts incurred shortly before filing for bankruptcy. Debts you incur during the look-back period are scrutinized and may be nondischargeable, which means they would not be erased through bankruptcy.
Further, incurring debt with the intent to erase it in bankruptcy may constitute bankruptcy fraud. Debt incurred as a result of fraud is nondischargeable.
- You can file for bankruptcy without your spouse.
Spouses have the right to file jointly for bankruptcy and each spouse has the right to file separately without their spouse. In cases where only one spouse files for bankruptcy, careful attention must be paid to the nature of the assets. It is critical to understand what property will be treated as part of the debtor’s bankruptcy estate.
- Even people with high income can qualify for bankruptcy protection.
It is a common bankruptcy myth that people with a high income cannot qualify for bankruptcy protection.
The fact is having a high income does not mean you cannot qualify for bankruptcy, it simply means that you have to run the means test to show that you qualify. If your income is above the median income for your state and household size, then you must run the means test to determine whether or not you qualify for Chapter 7 bankruptcy.
- Bankruptcy may not be the solution for your entire debt problem.
If you have nondischargeable debts, those will have to be paid back even after filing a successful bankruptcy. Further, if you have an underlying issue that caused you to become severely indebted that has not yet been resolved, then bankruptcy may not be the solution for your entire debt problem. For example, perhaps you went into debt because of a job loss and you are not yet gainfully employed.
We want our clients to enjoy the full benefits of the financial fresh start bankruptcy offers. So, it is important to address underlying issues that led to overwhelming debt prior to filing.
- Filing for bankruptcy is not shameful.
You do not deserve the financial and emotional stress of trying to pay back debts you cannot afford. Filing for bankruptcy is not shameful. It does not make you a bad person, and it does not mean that you’re a failure.
- Not everyone who files for bankruptcy is bad with managing money.
There is a common misconception that everyone who files for bankruptcy is bad with money. Often it is an unavoidable and unforeseeable situation that leads to bankruptcy. Consider too that many successful people have filed for bankruptcy. If you file for bankruptcy, you’ll be in the likes of Walt Disney, Billie Joel, and Mark Twain.
There are many reasons why people file for bankruptcy. Prior to filing many people experience a job loss, divorce, death in the family, a costly medical emergency, or another unavoidable situation. The two types of debt that are most often addressed by bankruptcy are medical debts and credit card debts.
- Filing for bankruptcy is your legal right.
Bankruptcy laws are designed to help people, like you, eliminate overwhelming debts that one simply cannot afford to pay back. If you had the money to pay back your debts, you would. Nobody wants to file for bankruptcy. However, for many people filing for bankruptcy is a wise financial decision. And bankruptcy is your legal right. You have the right to erase your debilitating debts and have a fresh start so you can have a healthy financial future.
Free Bankruptcy Consultation
Here at the Law Office of Barbara B. Braziel, we offer free consultations so that you can understand the protections and benefits of bankruptcy and how filing will affect you and your family. We take the time to explain the bankruptcy process to our clients. We invite you to get to know us here and read about the clients we’ve helped here.
Call us today at (833) 522-1069 or contact us to schedule a free consultation.
To have your questions about bankruptcy in Georgia answered, come meet with us for a free consultation. We proudly serve the people of Savannah, Chatham County, Effingham County, Bulloch County, Bryan County, Liberty County, and Long County.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. Find out more about Bankruptcy in our guide: All About Bankruptcy.
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