| Most people really do believe that they will lose | | | | neighborhood loan shark to get money again. I do not |
| everything they have and will never get credit again. | | | | advise anyone to go out and run up their debt again, |
| This is based mostly on fear and little on facts. The | | | | but if your planning to buy a new car or another home |
| stigma attached to bankruptcy reinforced by a lot of | | | | in your lifetime, like the rest of us, you will have to begin |
| creditors, makes most people who would benefit from | | | | reestablishing credit again. This will make those large |
| it the most, avoid it. Here are some of the real details. | | | | purchases easier because your interest rates will be |
| I will lose everything I own! | | | | lower if you have some sort of new credit history and |
| Most common is the misconception that the | | | | credit cards make sense in this manner. If you file for |
| government will come into your home and take or | | | | bankruptcy, you don't have to include any debtor you |
| liquidate everything you have and you will start over | | | | want to keep an account with, including a credit card, |
| from inside a cardboard box! While bankruptcy laws | | | | but there are bad credit credit cards for those with no |
| vary from state to state, every state has exemptions | | | | choice. |
| that you can use to protect certain assets, such as | | | | Only deadbeats file for bankruptcy! |
| your home, and your car (only up to a certain value), | | | | Most people file for bankruptcy protection because of |
| money from a qualified retirement plan plus your | | | | a major life changing experience, such as a divorce or |
| household goods and clothing. For most people, they | | | | a loss of a spouse or job. Sometimes even a serious |
| will pass through a bankruptcy and keep most | | | | illness has made it hard for those to keep struggling to |
| everything they own. If you have a mortgage or a car | | | | pay their bills and debts for months until the realisation |
| loan, you will keep those items as long as you keep | | | | sets in that they need help. the only other choice is to |
| making those payments, just like the rest of us! | | | | keep falling even further behind. |
| Everyone will know I filed for bankruptcy! | | | | Bankruptcy will wipe out all my debts! |
| There is a belief that everyone they know and those | | | | You wish! There are debts that cannot be discharged |
| they don't will know they have filed for bankruptcy or | | | | by a bankruptcy and some types of these are student |
| are about to. | | | | loans, debts that occured as a result of fraud, child |
| The truth is that unless you are a person with a wide | | | | support, alimony and a judge will not likely discharge a |
| audience, such as a prominent public figure, the only | | | | debt you have been ordered to pay to someone who |
| ones who will know it are your creditors! While it's true | | | | sued you. |
| that bankruptcy is a public proceeding, the sheer | | | | I can max out all my credit and credit cards and not |
| number of so many applicants filing makes it impossible | | | | have to pay for any of those things! |
| to publish all bankruptcy proceedings and very few | | | | This is called credit fraud and a judge will get real |
| publishers have the manpower or inclination to do so. | | | | cranky with this one because so many have tried it! |
| I can only file for bankruptcy once! | | | | Student loans used to be discharged this way, |
| You can file for bankruptcy more than once, but this | | | | especially in the 1970's when students would just |
| doesn't mean it's a great idea. The bankruptcy laws | | | | declare bankruptcy after graduation. The trustee in |
| that went into effect in October 2005 made the length | | | | your case will know what to look for and he or she will |
| between filings a little longer. You can only file for | | | | examine and review all your purchases and financial |
| Chapter 7 once every 8 years, you have to wait for 2 | | | | transactions right before your filing. If fraud is |
| years to repeat a Chapter 13 and wait for 4 years | | | | suspected, watch out! You could put any protection |
| between Chapter 7 and Chapter 13. Of course, multiple | | | | you are entitled to with a bankruptcy in jeopardy! |
| bankruptcies are a really bad idea and it can become | | | | Bankruptcy protection is there to help those of you |
| a way of life if you fail to learn to manage money | | | | who really need it and not a tool to abuse, just like |
| properly! This is not good for your karma or your credit | | | | your credit and credit cards. Use it wisely just like I |
| rating, not to mention your piece of mind! | | | | advise you to use your credit! Using your credit wisely |
| I will never be able to get credit or credit cards again! | | | | can save you $500,000 or more in interest charges in |
| This is the biggest of the misconceptions people have | | | | your lifetime! That money can and should be in your |
| about bankruptcy. The truth is this is quite the contrary! | | | | pocket. This is part of your being able to pursue your |
| It won't be long before you start seeing credit card | | | | share of the American Dream and like your other |
| offers again and other offers for credit are very likely | | | | pursuits, begins with using your credit wisely! This |
| to follow. Your just going to have to pay some higher | | | | means using the information from all available sources, |
| interest rates for awhile. Since bad credit credit cards | | | | including my websites to your best advantage. My |
| are some of the easiest to get, you have an | | | | newsletter will help you with the latest in credit |
| opportunity to start over with these types of credit | | | | management tips and I encourage you to subscribe to |
| and you can work your way back from there. You | | | | it. |
| don't have to go underground, like to your | | | | |