Myth: Bankruptcy Should Be Avoided at All Costs
One of the biggest bankruptcy myths is that filing for either Chapter 7 or Chapter 13 bankruptcy is the worst financial decision you can make. When entered into under the legal guidance of an experienced bankruptcy attorney, filing for bankruptcy can help provide debtors with a fresh financial start, eliminating various personal debts and even halting the foreclosure process.
Myth: Bankruptcy Will Ruin Your Credit
Many people think that they will never be able to reestablish credit following bankruptcy. Fortunately, you can begin reestablishing credit immediately after you receive the official notice that your debts have been discharged. Consider starting with a secured credit card, unsecured card, secured or unsecured loan, or even a gas card. Strange as it seems, many people who file for bankruptcy receive offers of new credit before their bankruptcy is over. Just remember that while you may be able to obtain these new lines of credit, you will want to be careful not to incur more debt than you can easily manage. Try to pay in full each month instead of carrying a balance. You will be surprised at how quickly you can rebuild your credit.
Myth: Married Couples Must File Together
You can file together or separately, that is your choice. In many cases it makes sense for husband and wife to file together, but in some instances one spouse might not want to file. This is absolutely fine and definitely allowed by the court. TIP: If you are getting divorced and both of you need to file for Bankruptcy, you and your spouse can usually save a substantial amount of money in Attorney and filing fees by filing for Bankruptcy together before your divorce is final.
Whether you are interested in filing for Chapter 7 or Chapter 13 bankruptcy, or exploring your other debt negotiation options, the Law Offices of Mark L. Miller are here to help. Give our San Diego firm a call at (619) 494-3821 to set up a consultation.