MYTHS OF FILING BANKRUPTCY

     There are numerous myths about the rights of individuals to file bankruptcy and the consequences of filing.  The following is a partial list of beliefs that are not true:

1.  If you did not file bankruptcy before October 17, 2005, you can no longer file bankruptcy.

2.  The bankruptcy laws have been repealed by Congress.

3.  Only the rich can afford to file bankruptcy.

4.  You cannot( remember these are myths) discharge any credit card debts under the new bankruptcy law.

5.  Most individuals must file a Chapter 13 bankruptcy with a payment plan for creditors.

6.  You will have to give up your home, car, furniture, and all other assets. (It is necessary to review the value of your assets and exemptions from creditors with your attorney).

7.  You can keep any vehicle no matter how much equity is in the vehicle.

8.  You will be audited by IRS if you file bankruptcy.

9.  You can no longer protect your home from foreclosure by filing bankruptcy.

10.  Before you file bankruptcy, you must pass a written test .  You must also pass another test to complete your bankruptcy.

11.  You will never be able to obtain credit or buy a home or vehicle.

12.  You will never be able to rent an apartment.

13.  You do not have to list all of your debts.  You can leave out debts you want to pay.

14.  If your former spouse files for bankruptcy on a joint debt, his or her bankruptcy will discharge your obligations on that same joint debt.

15.  If property is in your name, but a relative or friend has possession of the property and is making the payments, you do not have to list the debt.

16.  You do not have to list all of your assets.

17.  You can eliminate child support and alimony payments. 

18.  You do not have to make mortgage payments to keep your home.

19.  You can transfer your property and then file bankruptcy.

20.  You can run-up your credit cards right before filing bankruptcy without any problems.