Are you confused by all of the conflicting information out there about bankruptcy? Our bankruptcy FAQ will provide real answers in simple and easy to understand terms.
1.Bankruptcy will not financially ruin you for life.
It is not true that bankruptcy will ruin your life for 10 years. Quite the opposite: bankruptcy is a fantastic tool that gets you out of debt quickly and allows you to rebuild your credit within 12 to 18 months. It stops continual subjection to high interest rates for credit cards and car loans. Once you rebuild your credit, you can get loans with good interest rates and eventually get a mortgage loan.
2. There are bankruptcy scams out there that will hurt you instead of help you.
There are plenty of scams out there that you need to be very weary of. Do your research. Thousands of out-of-state companies make claims that they can eliminate your debts, but all they really want is your credit card information so they can charge you, without doing anything to solve your problem or get you out of debt. Most of the time, these scammers are not lawyers. Be extra cautious of out-of-state legal services.
3. You can file bankruptcy for $1,200.
Fees start as low as $1,200. Payment plans are available.
4. Bankruptcy stops wage garnishment, car repossession, sheriff sale, and/or harassing phone calls from debt collectors.
Filing for bankruptcy immediately stops wage garnishment, car repossession, sheriff sales and harassing phone calls from creditors. Once the bankruptcy petition is filed, the court grants you an “automatic stay.” An automatic stay puts an immediate end to any collection efforts from creditors. It also stops creditors from withdrawing money from your bank account(s), cutting off your utilities and taking actions to gain possession of any properties on which you owe money.
5. Bankruptcy is fast and easy.
Bankruptcy provides a quick and easy solution to eliminate your debts. And, it is much easier and more effective than debt repayment plans, or the alternative– not paying off any of your debts.
Taking action is the first step in becoming debt-free. Burying your head in the sand only prolongs the problem, and continues to subject you to stress.
Unlike debt consolidation programs with large payments and fees attached that go on for years, bankruptcy quickly eliminates all of your debts and lets you immediately begin rebuilding your credit, without hefty monthly payments.