Fiction About Bankruptcy And Its Penalities

By Author: Rob Nichols
Total Articles: 8
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For a homeowner in the 21st century, the new fear about buying a home is how to proceed making payments if he loses his job during a downturn in the economy and how to stop the bank from seizing his home. Since a home normally is the most valuable item folks have, losing it would prove to be detrimental to the success of a family, and rather than give a bank the chance to foreclose on a home, homeowners will file for bankruptcy. The word “bankruptcy” even has a negative connotation, but some folks misunderstand the way the process works and even the severity of the consequences. Do not buy into the false notions presented by dozens of folks, and instead, learn about some common misconceptions about bankruptcy and its penalties.

Facts Vs. Fiction

Some folks are under the impression that both husband and wife must file for bankruptcy if one of them is in debt, but really, only the spouse with the most debt should petition for it. It is often ideal for only one individual to file for bankruptcy and reduce the debt, and the concept that both must file to eliminate the debt is completely false. Bankruptcy takes ...
... about six months to finalize the filing process, but some people are under the impression that it takes up to a year or more to finish the application and submit all the required paperwork. The processing period is the same, no matter if you get a Norwalk or a bankruptcy attorney in Woodland Hills to help you finish the claim.

Of course, one of the biggest misconceptions created about bankruptcy is the notion that individuals who file will never be able to straighten out their credit again, which is not true, and so long as an individual is responsible about his finances, the score can easily be improved. Of course, the blemish left by bankruptcy will remain on your credit for up to ten years, but if you do act responsibly by submitting your payments on time and managing your money well, you can repair your credit quickly.

General Differences Between Chapter 7 and 13

You will generally file under Chapter 7 or Chapter 13 bankruptcy and will find that each is helpful for the kind of situation you are in. People who have few assets may want to file for Chapter 7, but someone with a steady income will be urged to file for Chapter 13 instead. Only a lawyer can advise you on which type to file and how it will affect your livelihood, and no matter who you employ, from a Norwalk to a bankruptcy attorney in Thousand Oaks, all will inform you about the same information.