Searching for an attorney for bankruptcy in San Francisco?
California was hit hard by the Great Recession and in effect has led to
job losses, extended periods of unemployment and foreclosures across the
state. In many cases of insolvency, consumer debtors have had nowhere
else to turn but to bankruptcy protection. Unfortunately, there are many
who believe that filing for
bankruptcy means that someone couldn't resist the temptation of credit cards, but
most people who file for bankruptcy usually do so for very different reasons.
Here is a fresh look at some of the myths surrounding the consumer bankruptcy.
Myth: People file bankruptcy because of reckless spending.
While there are some instances of abuse, by far the majority of people
who file for bankruptcy do so because of a job loss, a divorce, an accident
or a serious illness. Extended periods of unemployment can drain a family's
savings, the legal fees and costs of running two households following
a divorce, and the exorbitant costs of medical care can drive well-intentioned
Americans into bankruptcy.
Myth: A Chapter 7 will erase all debts.
Chapter 7 is designed to discharge unsecured debts such as medical bills, personal
loans and credit card debt, it doesn't discharge all debt. Debts such
as alimony, child support, most taxes, court-ordered fines, and debts
incurred as a result of fraud, and victim restitution cannot be discharged
in a bankruptcy.
Myth: You will never get a credit card again.
People are often surprised at how quickly they begin getting credit card
offers in the mail following a bankruptcy discharge. It's a good idea
to comparison shop the various credit cards online so you can get the
best deal. While your initial credit cards will have low credit lines
and high interest rates, by charging a small amount every month and paying
your credit card on time, you will slowly be able to rebuild your credit
and your credit lines and interests rates will improve accordingly.
Myth: You can charge up your credit cards, file for bankruptcy, and won't
have to pay that money back.
A common mistake people make is they decide to file bankruptcy, but before
filing they go out and max out all their credit cards falsely believing
those debts will be discharged. The courts are aware of this practice
and have ruled that such practices are fraud. Debt that is incurred as
a result of fraud won't be discharged. If a debtor charges a bunch of
stuff shortly before filing for bankruptcy, they won't usually get away
with it and that's a common misconception.
Myth: You will lose everything you own.
This is a misconception that keeps people from filing for bankruptcy that
would benefit from doing so. While every state has different rules, each
state has bankruptcy exemptions that allow a debtor to keep certain property
such as their home, an automobile, and money in qualified retirement accounts,
proceeds from a personal injury settlement, family heirlooms, jewelry,
tools of the trade etc. In the majority of cases, people pass through
bankruptcy keeping everything that they have. If you have a mortgage or
an automobile loan, you may get to keep those as long as you keep up the
payments just like the rest of us.
Contact The Bankruptcy Law Firm
If you are
thinking about bankruptcy, we urge you to contact The Bankruptcy Law Firm to tell us your story. With
over 8,000 bankruptcy clients served and with a
certified bankruptcy specialist on your team, we are confident we can help you determine if bankruptcy
is right for you.
San Francisco bankruptcy attorney from
The Bankruptcy Law Firm today -