There are many myths that you might hear from others about bankruptcy. It is important to address the many myths about bankruptcy. Some of the more popular myths are:
- A person can only file bankruptcy once in their life. FALSE – A person can file Chapter 7 bankruptcy every 8 years, and as soon as 6 years after filing Chapter 13 bankruptcy.
- After filing bankruptcy a person can never get another credit card, car loan, or buy a house. FALSE – Bankruptcy damages your credit in the short-term, but now that a person no longer has $20,000 in credit card debt, and no longer has a credit card company reporting 90 day late payments, that person’s credit score will begin to increase within a year after filing bankruptcy. In fact, because a person cannot file bankruptcy for 6-8 more years, that person is at less risk of not paying credit card debts – something that credit card companies exploit. BE CAREFUL. A person will receive multiple credit card offers immediately after filing bankruptcy.
- A person will lose their home after filing bankruptcy. FALSE – If after getting rid of your credit card debt you would be able to continue paying your mortgage, and any past-due payments, there is no reason why you cannot keep your home.
- Filing bankruptcy gets rid of spousal support & child support payments. FALSE – Domestic Support Obligations (DSOs) are NOT dischargeable in bankruptcy. As such, you will still have to pay any spousal support and child support payments while in bankruptcy and after bankruptcy.
- Filing bankruptcy costs a lot of money and takes a long time. FALSE – the Bankruptcy Defender offers competitive and affordable rates for preparation and filing of your Chapter 7 and Chapter 13 bankruptcy. The amount of time it takes prior to filing is dependent on you – i.e. how long it takes you to gather the necessary documents and information. After filing Chapter 7, your case can be completed in as little as 3 months. A Chapter 13 case requires a repayment plan of 3-5 years, and you receive a discharge shortly after completion of your repayment plan.
The Bankruptcy Defender helps individuals file for bankruptcy in Southern Nevada, including Las Vegas, North Las Vegas, Henderson, and Boulder City.
