How To Know The Facts from the Myths In Bankruptcy financial articles
March 29, 2024 Financial Portal Free Newsletter Bookmark Financial Portal Advertise Here Submit Your Article Other Financial Articles

Main Menu

Financial Polls
Financial Quotations
Financial Articles (Index)
Financial Articles (Categories)
Bank Directory
Gold Price Change
Silver Price Change
Platinum Price Change
Palladium Price Change
Rhodium Price Change
Copper Price Change
Nickel Price Change
Specialty Metals
Other Metals
Currency Rate Charts
Taxe Rates Worldwide
BTC USD
EUR USD
EUR GBP
EUR CHF
EUR JPY
EUR CAD
EUR AUD
USD EUR
USD GBP
USD CHF
USD JPY
USD CAD
USD AUD
EUR vs. Other Currencies
USD vs. Other Currencies
GBP vs. Other Currencies
AUD vs. Other Currencies
NZD vs. Other Currencies
DOWJONES Index
NASDAQ Index
NYSE Index
NIKKEI Index
FTSE 100 Index
TSX Index
CAC 40 Index
DAX Index
HUI Index
XAU Index
AEX Index
Index Reports
Housing Price Index
Oil Price Charts
Gas Price Charts
Commodity Charts
Meat & Livestock Charts
Softs & Tropicals Charts
Grains Charts
Mortgage Rate Reports
US Interest Rate
World Interest Rate
Inter. Stock Exchanges
NY Stock Exchange
AMEX
Philadelphia Stock Exch.
London Stock Exchange
Euronext Lisbon
Korea Stock Exchange
Deutsche Borse Group
Hong Kong Stock Exch.
Toronto Stock Exch.
Debt Collection Agencies
Insurance Companies in Ireland
Insurance Companies in UK
Insurance Companies in USA
Consulting Companies
Plastics Charts
Trade Organizations
Advertise For Free!
Scam Letters
Other Business Resources


How To Know The Facts from the Myths In Bankruptcy

By Roy Barker

 

Advertisements:



If you are contemplating the possibility or prospect of filing for bankruptcy, you likely have in mind a number of myths about the process and procedure of bankruptcy. (You may also have some basic facts about bankruptcy, but desire more before you make a final decision as to whether or not you want to proceed with such an action.) Through this article, the basic facts and some common myths about bankruptcy are discussed.

1. One of the most common myths associated with bankruptcy is that a bankruptcy permanently damages your credit history. While it is true that a bankruptcy will appear on your credit history for a period of seven to nine years, it does not remain on your credit report or part of your credit history indefinitely.

2. Another of the common myths associated with bankruptcy is that all of your debts simply “go away” or “vanish” after you have filed for relief. In point of fact, not all of your debts will be discharge through a bankruptcy action. Indeed, in recent times, lawmakers have made it more difficult for consumers to rid themselves of certain types of debt through the bankruptcy process. For example, debt that people have amassed on credit cards is no longer easy to dispose of in bankruptcy court.

3. One of the myths (or confusions) associated with bankruptcy centers on the different between secured and unsecured debt. Many people assume that all debt is the same. In point of fact, when it comes to seeking and obtaining bankruptcy relief, there is a significant different between secured and unsecured debt. An example of unsecured debt is that debt that you accrue on a typical credit card. As an example, if you charge food, gasoline and the like on your credit card, the balance on your credit card is considered unsecured debt.

As an aside, you do need to keep in mind that there are some credit card charges that end up as secured loans. In other words, if you let the credit card become delinquent, certain items that you have purchased on a credit card may be repossessed. An example, of such a card is a credit card provided by a retailer that sells appliances and electronics. In many instances, these stores do take a lien interest in the property sold to you. And, if you end up defaulting on the credit card, they can and oftentimes do repossess the property in question.

A prime example of secured debt is the mortgage on your home. The amount of money that you have been provided in the form of a loan is “secured” by your home itself. In other words, if you default on the loan, the lender has the ability to foreclose on the home and take your house as a means of satisfying what is due and owing on the loan itself. Another example of a secured loan would be the loan on your motor vehicle. As with the house, if you default on your car loan, the lender has the chance to repossess the vehicle to satisfy the outstanding balance on the loan itself.

In bankruptcy, when it comes to a secured loan, you have the ability (in most instances) to execute what is known as a reaffirmation agreement. Through a reaffirmation agreement you have the ability to continue to make payments on your mortgage or car payments and you will be able to keep the residence or the automobile.

4. Another of the common myths associated with the bankruptcy process is that it is easy. Many people think that they can trot off to the bankruptcy courthouse on their own and file a petition without a hassle. In reality, consumer bankruptcies can be very complicated. Therefore, in the vast majority of cases, a consumer is well served obtaining the assistance of a qualified lawyer to assist with the case. An experienced lawyer can and usually does make a world of difference when it comes to this type of legal relief for a consumer.

By understanding the myths and facts associated with bankruptcy, you will be able to determine if bankruptcy is the best option for you. By understanding the facts of bankruptcy, you will have taken the first step on the road to bringing order to your financial house.

Publisher & Author, Billy Baxter - There's a free attorney selection tool along with more relevant bankruptcy assistance, highly informative articles and fresh news at Billy's site, see it here http://www.bankruptcy-aid.com/wordpress/index.php



Published - December 2005











Free Newsletter

Subscribe to our free newsletter to receive news and updates from us:

 

Polls at Financial-Portal.com :

Poll #039
Will USA announce default on its debt?

Poll #036
Is there a secret world government?

Poll #034
Do you know that money is a good servant but a bad master?

Poll #033
Is Forex similar to gambling?

Poll #032
What is your occupation?

Poll #031
Do you ever spend money for things you can do without?

Poll #030
Do you know that it is extremely hard for a rich person to enter the Kingdom of God?

Poll #029
Why do you want to earn more money?

Poll #028
Are you determined and working hard to get out of debt?

Poll #026
What is your net yearly income (after taxes), USD?

Poll #024
What percentage of your income goes for paying your debts off?

Poll #023
What percentage of your income do you save?

Poll #021
What is the first step one should make to get out of debt?

Poll #018
Have you noticed that the more you give, the more you get?

Poll #017
What part of your income do you donate to charities?

Poll #016
What part of your income do you donate to Church?

Poll #015
What is the most important thing in getting out of debt?

Poll #014
What country has the healthiest (the most stable, reliable, and promising) economy?

Poll #013
Do you think credit cards are useful or harmful for people (not for bank owners)?

Poll #010
What currency is the strongest - in the long run (for the next 10-30 years)?

Poll #009
Do you have any savings?

Poll #008
Do you have any debts?

Poll #007
What is your religion?

Poll #005
What country are you from?

Poll #004
Do you think cash will eventually be removed from circulation?

Poll #003
What investment brings the highest profits with lowest risk?

Poll #002
What is the most reliable way to save money?

Christianity

Copyright 2004-2024 © by Financial-Portal.com
Legal Disclaimer