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10 Myths About Filing Bankruptcy France Law Group , LLC 419.725-9300 www.bankruptcy-toledo.com We are a debt relief agency. We help people file for relief under the bankruptcy code.

10 Myths About Filing Bankruptcy

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10 Myths About Filing Bankruptcy. France Law Group , LLC 419.725-9300 www.bankruptcy-toledo.com. Myth #1 Successful people don’t file for bankruptcy!. Everybody faces unexpected financial challenges Celebrity Bankruptcies Stephen Baldwin Donald Trump Henry Ford Kim Basinger - PowerPoint PPT Presentation

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Page 1: 10 Myths  About Filing  Bankruptcy

10 Myths About Filing

Bankruptcy

France Law Group, LLC419.725-9300

www.bankruptcy-toledo.com

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 2: 10 Myths  About Filing  Bankruptcy

Everybody faces unexpected financial challenges

Celebrity Bankruptcies Stephen Baldwin Donald Trump Henry Ford Kim Basinger Abraham Lincoln Walt Disney Larry King Willie Nelson Dorothy Hamill Burt Reynolds Rembrandt France Law Group, LLC

419.725-9300 www.bankruptcy-toledo.com

Myth #1 Successful people don’t file for bankruptcy!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 3: 10 Myths  About Filing  Bankruptcy

You will likely receive many post filing credit offers. ◦ You can’t file Chapter 7 again for 8 years◦ Your debt levels post-filing are likely very low.

TIP: Be choosy, read fine print, wait◦ Beware of auto dealers & credit cards offering high interest rates.◦ As time passes, your credit score will improve and you may become eligible

for lower credit interest rates.

France Law Group, LLC 419.725.9300 www.bankruptcy-toledo.com

Myth #2 After bankruptcy, I will never get credit again!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 4: 10 Myths  About Filing  Bankruptcy

Many debtors are able to keep cars & home◦ Chapter 7 is liquidation, however exemptions exist to help debtors

protect certain assets.

Helpful Tips:◦ Stay current on home/car loans◦ Let your attorney know about any equity in your home or car.

France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com

Myth #3 I will lose my home & car if I file bankruptcy!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 5: 10 Myths  About Filing  Bankruptcy

No specific law requires a time period for bankruptcy to remain on a credit report.◦ Varies by credit reporting agency◦ Individual creditors view bankruptcy differently

France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com

Myth #4Bankruptcy is on my credit report for 8 years!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 6: 10 Myths  About Filing  Bankruptcy

Court filing fees are per case, not per person ◦ Filing as married couple will save an extra filing fee◦ OK to file separately◦ OK to file when married, but living separately too.

TIP: Divorce decrees trump Bankruptcy◦ Be mindful of what you promise in divorce decree

France Law Group, LLC 419.725.9300 vvwww.bankruptcy-toledo.com

Myth #5: I should wait to file until my divorce is finalized!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 7: 10 Myths  About Filing  Bankruptcy

If you can’t wait, other options may be available◦ 8 year waiting period between Chapter 7 filings◦ Time begins accruing on filing date

Options (during interim period)◦ Chapter 13 bankruptcy (repayment plan)

◦ Creditor negotiations

France Law Group, LLC 419.725-9300 www.toledo-bankruptcy.com

Myth #6 I cannot file a bankruptcy for another 8 years!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 8: 10 Myths  About Filing  Bankruptcy

There is no proof that either Chapter 7 or Chapter 13 is better for your credit rating.

TIP: Ask your attorney whether a debt consolidation plan is appropriate? This may affect your credit score differently.

France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com

Myth #7 Chapter 13 is better for my credit rating!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 9: 10 Myths  About Filing  Bankruptcy

Bankruptcy laws are here to help you recover from periods of hardship.◦ Common reasons why people file bankruptcy

Medical Job Loss Home Foreclosure Divorce

France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com

Myth #8 Only irresponsible people file bankruptcy!

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 10: 10 Myths  About Filing  Bankruptcy

Generally, debts owed to government are NOT dischargeable◦ Student loans◦ Taxes◦ Overpayment of Benefits◦ Court fines/costs◦ Restitution

Narrow exception pertaining to student loans exists.◦ Extreme hardship cases

France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com

Myth #9 Student loans are dischargeable.

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Page 11: 10 Myths  About Filing  Bankruptcy

Not everyone qualifies for Chapter 7◦ Your attorney will examine your current household budget and the last 6

months of paystubs to determine eligibility.

France Law Group, LLC 419.725-9300 www.bankruptcy-toledo.com

Myth #10 I automatically qualify for Chapter 7.

We are a debt relief agency. We help people file for relief under the bankruptcy code.