Dispelling Myths About Bankruptcy

People in Ohio and across the U.S. who are having financial difficulties should have the facts about filing for bankruptcy.

2012-07-26

July 26, 2012 (Press-News.org) Dispelling Myths About Bankruptcy

The thought of filing for bankruptcy sends many people into a panic. They may be struggling to pay their bills, falling further behind all the time, living under the constant strain of debt and fending off harassing creditors.

However, they think that filing for bankruptcy would be even worse because they believe some of the common myths surrounding bankruptcy. People in Ohio and across the U.S. who are having financial difficulties should have the facts about filing for bankruptcy.

Myth #1: Filing for Bankruptcy Means Losing Everything

One of the most common misconceptions that prevents people from seeking bankruptcy relief is the belief that if they file bankruptcy, everything they have worked so hard to acquire in their lives will be gone. In fact, bankruptcy law allows for several exemptions people can take to protect certain things from their creditors and to be able to continue to meet their basic needs.

Exemptions can differ based on whether a person files under state or federal bankruptcy, but both allow exemptions for homesteads, pensions, retirement accounts, vehicles and other personal property.

Myth #2: Filing for Bankruptcy Means Never Getting Credit Again

Many people avoid filing for bankruptcy because they fear it will do irreparable damage to their credit scores and they will never be able to obtain credit again. While it is true that filing bankruptcy hurts a person's credit score, several lenders rush to offer a person credit after filing bankruptcy because the filer now has very little or no other debts, so creditors believe the person will be able to repay the money. Creditors also know that it will be some time before a person can file bankruptcy again, so there is less of a chance that the creditor will lose money through a bankruptcy debt discharge.

However, people should understand that the interest rates that these lenders offer will most likely be very high. They are not the most desirable credit options, but they do exist if people have immediate need for credit right after filing bankruptcy. Rates will improve as time passes if people take steps to repair their credit scores after bankruptcy.

Myth #3: A Person Can Only File Bankruptcy Once

Some people believe that they may only file for bankruptcy once in their lives, so they need to save that option in case things get even worse later. However, a person may file for Chapter 7 bankruptcy once every eight years, and they may file for Chapter 13 bankruptcy more frequently than that.

It is not a good idea to file bankruptcy frequently, but the option does exist if people hit another crisis in their lives and need bankruptcy relief. For more information, contact a knowledgeable bankruptcy attorney in your area.

Article provided by Mahaffey & Associates, LLC
Visit us at http://www.yourlocalattorneys.com/

ELSE PRESS RELEASES FROM THIS DATE:

What to Do After a Dog Bite in California

2012-07-26

What to Do After a Dog Bite in California People in the U.S. love their dogs. About 77.5 million dogs are kept as pets in the country, according to See California, and California is the state with the most dogs. Almost 40 percent of California households have a dog. California also has some of the most strict dog bite laws in the country, making dog owners responsible for injuries their dogs inflict when dogs bite. People should know California's dog bite laws and the steps they should take if they have suffered injuries as a result of a dog bite. California Dog Owner ...

California's TRUST Act Would Limit Deportations

2012-07-26

California's TRUST Act Would Limit Deportations The Obama Administration has emphasized deportation of undocumented immigrants who are convicted of crimes with the Secure Communities program. In the years the program has been in place, though, many have voiced criticisms of how the federal government enforces the program's regulations. A bill in the California state legislature called the TRUST Act would limit California state authorities' participation in the Secure Communities program. The Secure Communities Program The Secure Communities program began in 2008, ...

Drunk Driving Laws and Penalties in New York

2012-07-26

Drunk Driving Laws and Penalties in New York New York state takes drunk driving very seriously. The penalties for a DWI conviction can be severe, regardless of whether driver is under or over age 21, a first-time offender or a commercial driver. Different Penalties Depending on BAC When a driver's blood alcohol concentration is between 0.05 and 0.07, he or she may be convicted of an offense called driving while ability impaired by alcohol. For a first DWAI conviction, fines range from $300 to $500, and the driver may be sentenced to spend up to 15 days in jail. ...

Missouri Child Custody and Support

2012-07-26

Missouri Child Custody and Support When parents split up, one of the more difficult issues they face is setting up custody arrangements. If parents cannot reach an agreement between themselves, the court must step in and set up a parenting schedule. Missouri parents should know the different types of child custody, as well as how courts make custody determinations and child support awards. Types of Custody in Missouri Missouri law divides custody into two main categories: -Legal: the right to make decisions about the child's upbringing, such as education, religion ...

New Jersey Considering Stiffer Penalties for Repeat DUI Offenses

2012-07-26

New Jersey Considering Stiffer Penalties for Repeat DUI Offenses On June 7, 2012, the New Jersey Assembly Law and Public Safety Committee approved a bill that would increase the possible penalties for those who have multiple driving under the influence convictions. Drivers in New Jersey should be aware of the state's punishments for repeat DUI convictions and how they may change if the Assembly passes this bill. Current DUI Penalties The punishment for multiple DUI offenses in New Jersey is already severe: -Second DUI conviction: forty-eight hours to 90 days ...

Easy Steps to Protect Your Assets in a Divorce

2012-07-26

Easy Steps to Protect Your Assets in a Divorce Getting a divorce can be a complicated, messy process for unprepared couples. However, by taking certain steps, those considering divorce can increase the odds of achieving a fair result. When the vague idea of divorcebecomes a reality, it's important to immediately separate financial assets such as checking, savings and credit card accounts. Individuals should try to maintain, or begin creating, financial independence and credit in their own names. Further, some spouses may try to cut off -- or take advantage of -- the ...

A Do-it-Yourself Missouri Divorce Can Lead to Difficulty

2012-07-26

A Do-it-Yourself Missouri Divorce Can Lead to Difficulty The number of people representing themselves in divorce proceedings has steadily increased over the last couple of years. When a person represents themselves in a divorce it is called a "pro se" case. A pro se case usually stems from a desire to save money, but there are also cultural forces that may influence a litigant to self-represent. A growing do-it-yourself mindset, a desire to cut out the "middleman," or simply a general apprehension about attorneys and the legal field can make a person ...

Social Security Disability Benefits for Injured Military Veterans

2012-07-26

Social Security Disability Benefits for Injured Military Veterans To help wounded soldiers receive disability benefits more quickly, the Social Security Administration offers expedited claims processing for military veterans who are unable to work as a result of an injury received in service. Who is Eligible for Disability Benefits? Members of the U.S. military may qualify for expedited claims processing with the SSA if they became disabled during active military service on or after October 1, 2001, regardless of where the injury occurred. However, to receive Social ...

Supplemental Needs Trusts Can Provide for Long-Term Care

2012-07-26

Supplemental Needs Trusts Can Provide for Long-Term Care Parents often worry about their children and what the future holds for their offspring. Parents of children with special needs may be even more anxious than most parents, with an acute worry about who will care for their children after the special-needs child's parents have passed away. Parents should be aware that there are estate planning options, such as a supplemental needs trust, that can ensure that their children will have assets to meet their needs long into the future. What Is a Supplemental Needs Trust? A ...

Why Have a Will?

2012-07-26

Why Have a Will? Making plans for asset transfers after a person dies is not high on many people's lists of fun things to do. However, everyone over the age of 18 should have a will to detail how they want to distribute their possessions after they die. People should understand who needs a will, the contents of a will and the benefits of having a will. Who Needs a Will? All adults need wills. However, having a will can be even more important for those who: -Are married -Have been divorced -Have children -Have partners but are not married -Own a business ...

LAST 30 PRESS RELEASES:

Lower doses of immunotherapy for skin cancer give better results

Why didn’t the senior citizen cross the road? Slower crossings may help people with reduced mobility

ASH 2025: Study suggests that a virtual program focusing on diet and exercise can help reduce side effects of lymphoma treatment

A sound defense: Noisy pupae puff away potential predators

Azacitidine–venetoclax combination outperforms standard care in acute myeloid leukemia patients eligible for intensive chemotherapy

Measurable residual disease shows strong potential as an early indicator of survival in patients with acute myeloid leukemia

Chemotherapy and radiation are comparable as pre-transplant conditioning for patients with b-acute lymphoblastic leukemia who have no measurable residual disease

Roughly one-third of families with children being treated for leukemia struggle to pay living expenses

Quality improvement project results in increased screening and treatment for iron deficiency in pregnancy

IV iron improves survival, increases hemoglobin in hospitalized patients with iron-deficiency anemia and an acute infection

Black patients with acute myeloid leukemia are younger at diagnosis and experience poorer survival outcomes than White patients

Barrow Neurological Institute, University of Calgary study urges “major change” to migraine treatment in Emergency Departments

[Press-News.org] Dispelling Myths About Bankruptcy
People in Ohio and across the U.S. who are having financial difficulties should have the facts about filing for bankruptcy.