… is a perfectly valid right granted by the U.S. Constitution so you shouldn’t believe the untrue myths surrounding it!

Unfortunately, there are a whole lot of bankruptcy myths out there, many of which lead people to fear bankruptcy as the boogie man in the closet that will destroy their financial well-being.  Many times, exactly the opposite is true!  In the right circumstances, bankruptcy can provide the fresh financial start that so many consumers need to dig themselves out of a …

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The decision to file for bankruptcy is typically a last resort for consumers who find themselves plagued with debt. While bankruptcy may offer a fresh start and relief from bills incurred from divorce, unemployment and uninsured medical costs, many consumers worry about how the decision will ultimately impact their financial future.

Myth #1 – Filing for bankruptcy will permanently ruin my …

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… of revealing the truth, we now have many supposed “financial gurus” spreading bankruptcy myths and generally giving this financial lifeboat a bad rep. Let’s take a look at two of the most common bankruptcy myths and shed some light on them.

Myth 1: Bankruptcy destroys your financial future.

Fact: This myth is the mother of all bankruptcy myths which keeps many debtors struggling to pay debts when it is clear they will NEVER be paid off because it’s impossible. …

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… to defeat the “ Helping Families Save Their Homes in Bankruptcy Act of 2009 ” by spreading myths and untruths about how the new bankruptcy law would affect the economy, future mortgages and the mortgage industry itself. If the bankruptcy law passes it would give bankruptcy courts the power to modify toxic mortgages of homeowners facing foreclosure. My nevertheless, the mortgage industry insists on pushing myths to prevent help from reaching homeowners.

Myth #1: The mortgage …

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There are a few myths surrounding the requirements for filing for bankruptcy.

The following are NOT true about bankruptcy requirements:

You have to be a US citizen to file for bankruptcy. (FALSE)

You must live in the US to file for bankruptcy. (FALSE)

You must be a legal US resident to file for bankruptcy. (FALSE)

You must be an eligible voter to file for bankruptcy. (FALSE)

You …

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… floating around. Many debtors considering bankruptcy often listen to the half-truths and outright myths about bankruptcy instead of getting the truth from qualified sources.  Let’s take a look two of the most common myths out there about bankruptcy and get to the bottom of the truth.

Myth : Bankruptcy will ruin your credit for 10 years and you will not be able to buy a home, car, get credit cards or even rent an apartment.

Fact : While Chapter 7 bankruptcy will remain on your …

Tags: Bankruptcy myths and facts

Money and debt can be financially charged issues. Yes, as long as there is enough income and all the bills are paid, emotions are usually positive; but once an imbalance occurs (loss of a job, reduced income etc.) negative emotions can become highly charged.  Unfortunately, many debtors allow their emotions to dictate whether or not they will file bankruptcy .  That is a huge mistake.  …

Tags: Anger Bankruptcy Embarrassment Emotion Fear Myths

Let’s clear the air about something, bankruptcy IS NOT a “gut wrenching” experience that destroys your life and leaves you awake at night. I’ve heard this ridiculous notion bandied about by the very people who have benefited from bankruptcy in their life.  They file bankruptcy, reap the benefits, then turn around and tell others not to file bankruptcy because it will destroy THEIR …

Tags: Bankruptcy Questions Lawyers and Law Firms Myths

Tirra Jones filed Chapter 13 bankruptcy last month and finally got relief from $271,000 of debt mostly medical debt that had become an albatross around her neck. When Tirra came to us for help, she was feeling stressed and overwhelmed by all of the medical debt that was created by a series of hospital emergency room visits, ambulance rides, surgery, doctors visits and other medical …

Bankruptcy process allows GM to cut dealerships without dealing with each franchise separately.

An article on CNNMoney.com pointed out that GM has a “once-in-a-lifetime opportunity” to get out of franchise contracts that they hold with several dealers.  History shows that these contracts can be extremely expensive to get out of, but since bankruptcy is on the horizon, GM is being given …

There is a nasty myth about bankruptcy that stops many debtors from seeking much needed relief. The myth states that once you file bankruptcy your credit is ruined for life. This is completely and dangerously false. After filing for bankruptcy most former debtors are eventually able to restore their good credit standing and go on to purchase homes, vehicles and obtain unsecured credit. Here …

Many credit card consumers are under the mistaken belief that as long as they pay “something” on their credit card debt every month (even if it’s lower than the minimum required payment), their creditor cannot take further action against them. That’s a MYTH . The truth is that each credit card has a minimum payment requirement that credit card consumers are required to pay in order to …