There are many secrets, misconceptions and myths surrounding bankruptcy that 'they' don't want you to know - Who are 'they'? They are the creditors, the credit card companies, the banks, the pay day loan companies. They are all the businesses that have a vested interest in keeping you in debt, paying late fees, paying additional interest, and paying over-the-limit fees.
As a bankruptcy attorney I can help give you the right advice and let you in on some of the secrets about declaring bankruptcy that aren't widely known. For example, a Chapter 7 bankruptcy is known as a straight liquidation bankruptcy, which often confuses consumers. It's frequently believed that this means they must sell everything they own and get rid of all their assets, including their home and car. That is a myth! In fact, what liquidation in Chapter 7 really means is that bankruptcy liquidates, or wipes out, all the debts! It's almost as if those debts never existed. And in most cases, you are allowed to keep certain assets in exchange for wiping away those debts. This is the preferred type of bankruptcy for most people. It let's you start over, move on, and get a fresh start after discharging your debts.
Many people don't know if bankruptcy is an option for them. If you have credit card debt or overdue medical bills, for example, and you consistently can't make those payments, or you are living paycheck to paycheck because of your debts, then there's a good possibility that bankruptcy is right for you. People are often under the misconception that they don't have enough debt to file for bankruptcy. They think they must have at least $10,000, $20,000, or $50,000 in total debts to file bankruptcy. That is not true! There are no debt requirements, there are no debt limits.
If your answer is "Yes" to questions like these...
Do you feel like you are living paycheck to paycheck?
Are you distressed by the amount of debt you owe and feel uncertain as to how you will pay for it?
Are you afraid to open your mail because of overdue bills?
Are you receiving harassing phone calls from creditors looking for money?
Are most of your bills paid late because you don't have the money?
Do you carry balances on more than three credit cards?
Are you a month or more behind on your credit card payments?
Are most of your credit cards maxed out?
Are your credit card interest rates in the double digits?
Do you use one credit card to pay off another credit card?
Do you find yourself routinely paying late fees?
Are you a month or more behind on your mortgage payments?
Is your home in pre-foreclosure?
Is your home worth 30-50% less than what you owe on it and your mortgage lender is unwilling to negotiate?
Have you recently taken out a pay day loan or title loan on your car?
Are you using your retirement savings to pay your living expenses?
Are you using credit cards to pay for everyday necessities like groceries or gas?
Have you only made minimum payments on your credit cards for more than three months in a row?
Is your car in danger of being repossessed?
...then bankruptcy may be right for you.
More often than not, people are really in distress by the time they seek advice. So I like to make sure that all your questions are answered and you're really certain that declaring bankruptcy is the best option for your particular circumstances. I offer a free 30 minute telephone bankruptcy consultation where we can discuss your debt situation and you can get your questions answered. So what are you waiting for?