Bankruptcy - 15 Facts You May Not Know!

15 Facts About Bankruptcy

1. Stops a foreclosure of your home.

2. Stops repossession. For instance, if your car is being repossessed, Bankruptcy can stop your creditor from repossessing your car and possibly lower your payment.

3. Stops bill collectors. If you happen to be behind in your bills and your creditors are constantly calling you, that will definitely stop once you declare bankruptcy.

4. Enables you to keep your car as well as your home. Most people who declare bankruptcy do keep their home and their car while they are paying down their debt.

5. The new bankruptcy laws actually help people more than the old laws.

6. When you are married, you can file individually if the debts are mostly in one of the names.

7. Bankruptcy is not published in the newspaper.

8. Fast filing is normal. Some worry it will take forever to file, but that isn't the case. Usually it can be within 1-2 days, as long as you provide the necessary documentation.

9. Bankruptcy laws are federal laws and the cases are brought into federal court.

10. You have to petition for bankruptcy with a judge.

11. Not all debts are forgiven when you file

12. Student loans and tax debt usually can't be eliminated in any bankruptcy.

13. Your credit report will show Bankruptcy for 10 years after you file.

14. Filing Bankruptcy can Lower Payments...

15. Debtors must meet with a credit counselor six months prior to applying for bankruptcy and must attend money management class.