Myths About Florida Bankruptcy
The Golden Law Group is recognized as one of the Florida Central Gulf Coast region's prominent bankruptcy law firms. Under the guidance of board-certified bankruptcy specialist Don Golden, the firm has helped thousands of hard working individuals and families in Manatee County, Hillsborough County and Sarasota County get the true relief from debt they need.
Most people who call the firm typically have questions about what their life will be like after filing for bankruptcy. The credit card and consumer loan industry has worked hard to perpetrate myths about living a life of hand-to-mouth existence, unable to ever get another loan to buy a house or a car. Yes, there are a lot of myths about bankruptcy. The Golden Law Group would like to start here by exploding some of those myths. After all, understanding the bankruptcy process is the beginning of getting the fresh start you need.
Myth 1: You will never receive another loan or credit card
The truth is, banks would rather loan money to someone they know has the monthly cash flow to pay it back. Often, within a year of having your debts discharged, you will be eligible to receive a secured loan or a credit card, at a higher interest rate, of course. With a good record of making payments on time, you can start rebuilding an excellent credit rating immediately.
Myth 2: You will lose your house and car
Under Florida law, most people are allowed to keep their house, if they - continue to make their monthly mortgage payments. Under certain circumstances you may be able to strip off second and third mortgages in a Chapter 13 bankruptcy. You are also allowed to keep your car if you have one thousand dollars or less of equity if you file a Chapter 7 case and you can definitely keep your car in a Chapter 13 case no matter how much equity it has
Myth 3: Employers check your credit rating
For some high-level financial positions, employers are beginning to check applicant's credit ratings, as a means of determining trustworthiness about handling financial accounts and money. State and federal lawmakers are beginning to review the practice. The large majority of employers do not consider your credit report when making a hiring decision.
Myth 4: Deadbeats get out of child support obligations by filing bankruptcy
Court-ordered judgments, including marital property settlements, spousal maintenance and child support are not dischargeable debt under either of the Chapters of bankruptcy. Penalties and fines accrued for late payments may be included in the debt consolidation plan under Chapter 13 filing, but all support obligations must be met.
Myth 5: Only irresponsible people file for bankruptcy
The laws are in place to help Americans get a second chance at success. Some nationally-recognized and respected individuals who have filed for bankruptcy protection include Buffalo Bill Cody, Walt Disney, Director Francis Ford Coppola, General Motors founder William C. Durant, author Mark Twain and auto maker Henry Ford, among hundreds of other notable names in American history. In most cases, it was the second chance that helped them rise to success.
Myth 6: You Won't Qualify for Chapter 7 Debt Discharge Since the New Laws
The new bankruptcy means test was put in place to ensure that people who had the income and assets to pay their debts, paid their debts. Much depends upon your attorneys understanding of the law and what qualifies as income and debts, to be inputted into the calculator. Most people who talk to an attorney at The Golden Law Group are eligible to have their debts discharged under Chapter 7.
The Golden Law Group is ready to answer all of your questions about bankruptcy myths. Contact the firm to arrange a no-cost, no-obligation consultation with one of their experienced lawyers today. Offices in Brandon, Tampa and Bradenton serving communities throughout the Florida Central Gulf Coast region, including Sarasota.