Learn the facts from the Utah Bankruptcy Guy and avoid the 7 Utah bankruptcy myths out there. During the past year, the team here at the office keep t a list of the most common misconceptions floating around Utah about bankruptcy. In no particular order here we go:
- After I file for bankruptcy, my credit will be ruined. While it is true that your credit report will indicate that you filed for bankruptcy, that does not necessarily reduce your credit score. In fact, two years after your debts are discharged, most of our clients see 720 credit scores. This is due to a change in the income-to-debt ratio that results after discharge.
- It is nearly impossible to file for bankruptcy. This is a myth. In fact, the U.S. Congress has made it easier for consumers to file for bankruptcy protection.
- After I file bankruptcy, I will lose my house and all my property. Not True! While it is possible to lose property while under bankruptcy protection, most debtors retain all of the property they desire.
- Because I filed for bankruptcy previously I cannot file again. While a certain amount of time must pass before you can file for bankruptcy again, you can refile – if you meet the requirements. Let us review the particulars of your case and determine if another bankruptcy filing is possible.
- After I file bankruptcy, I will not qualify for student loans. This is a myth. Many people who file for bankruptcy protection later complete college using student loans.
- I want to file bankruptcy but I do not want to put my house or car in it. Most of our clients say that something before bankruptcy. Though you need to list the debt you most likely will keep the vehicle or home if you want it.
- In bankruptcy my student loans and past-due child support payments can be discharged. While it is technically possible to discharge student loans, this is a very difficult process and most people do not qualify. However, child support obligations and most taxes are not dischargeable in bankruptcy.
Don’t forfeit your right to a Fresh Financial Star by believing these myths. Contact us today to get a consultation and know your rights!