There are many myths surrounding bankruptcy. Listed below are some of the most common misconceptions about filing:
I will never be able to get credit again - You will probably begin to get offers from credit card companies soon after you file bankruptcy in California. There will be numerous companies that may offer you credit. However, these will likely be at a less attractive interest rate then you may have had in the past.
On the other hand, if you want to buy a house or car, speak to your San Francisco bankruptcy attorney about whether you should do that before you file for bankruptcy. It may be very difficult to get a significant loan after your bankruptcy proceedings are completed.
Both my spouse and I will have to file for bankruptcy in San Francisco - This is not always true. It is possible for your spouse to have a large amount of debt in their name only. It is also possible for one spouse to file and leave the other spouse out of the bankruptcy. California is a community property state, and depending on the type of debt, a creditor may or may not be able to continue to pursue the spouse who did not file.
Bankruptcy in CA will eliminate my back taxes - The IRS will not excuse you from paying your taxes in bankruptcy. Although generally not dischargeable in bankruptcy, it may be possible to discharge certain types of back taxes and liabilities owed to the IRS. To find out if you are eligible for tax discharge, you should get the professional advice of a San Francisco bankruptcy attorney.
Bankruptcy will improve my credit rating - You may hope that by eliminating your debts, you will improve your credit score. While that maybe true over time if when you start rebuilding your credit, filing for bankruptcy in San Francisco may negatively affect your credit rating for as much as 7 to 10 years. With a new positive credit history, however, you may begin to rebuild your credit soon after you receive your bankruptcy discharge.
I only have one chance to file for bankruptcy in San Francisco - You may only file for Chapter 7 bankruptcy once every 8 years, but you can file for Chapter 13 reorganization more often than that. If you have already filed for bankruptcy in San Francisco, you can consult a San Francisco bankruptcy attorney to find out if you may file again.
Chapter 7 bankruptcy will eliminate all of my debts - A Chapter 7 bankruptcy will not eliminate all types of debt. There are certain types of debts that a filing for bankruptcy will not be able to erase. These include child support, alimony, student loans, and debts that you incurred due to fraudulent activity.
About this Author
San Francisco bankruptcy attorney Mark Chernev prides himself in providing the most cost-effective legal representation in the areas of Chapter 7, Chapter 13 and Chapter 11 Bankruptcy. If you are considering filing for bankruptcy in California, call him today for a cost-free consultation.
How Can a San Francisco, CA Bankruptcy Attorney Help?
If your debts have spiraled out of control to the point where you believe your only option is to declare bankruptcy, speak to a professional about your options before jumping into any life-altering financial decisions. The San Francisco bankruptcy attorney team at The Chernev Firm can talk to you about the ramifications and requirements of declaring bankruptcy in California. Contact us today to schedule a free bankruptcy consultation - 415-956-4020.
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