We field a lot of questions about bankruptcy around here. It’s not surprising, because if you search online (which, if you’re here, you might have) you’ll quickly find a lot of information, perhaps even conflicting.
Today’s entry is dedicated to answering some of your common bankruptcy myths so, if the time should come, you’ll be better prepared for the task at hand.
Myth #1: I don’t have to go to court.
Easy enough to dispel, yes you will. You will have to meet the federal bankruptcy trustee at the meeting of creditors. More commonly, this is called the “341 meeting”. There are differences in this meeting depending on if you file for Chapter 7 or 13 bankruptcy, but in all cases you must attend this meeting along with your attorney and your creditors and their attorneys (should they choose to attend).
Myth #2: I don’t have to be current on my home/vehicle loans to keep my assets.
Practically speaking? Yes, you do. Then, you can reaffirm those obligations during the bankruptcy proceedings. To reaffirm means that you agree to pay the creditor, even though it could be discharged. This is done by entering a reaffirmation agreement with that creditor.
Myth #3: Chapter 7 Bankruptcy discharges almost immediately.
Once you’ve filed for bankruptcy, the 341 meeting is typically scheduled to occur within 30 days. Then, if the trustee doesn’t find any issues, the discharge usually follows within 60 days after the meeting of creditors. This is not always the case, extenuating circumstances (like court backlogs) can lead to longer discharge times.
Myth #4: You can pick and choose what to file bankruptcy on.
You must disclose everything. After this is done, you can reaffirm on certain debts, but all must be clearly disclosed in your filing. Your trustee must examine all of your incomes and debts to the fullest extent in order to determine what qualifications you have for filing.
Myth #5: Bankruptcy doesn’t cost anything to file.
We don’t know where this one comes from, but there are fees involved with filing for bankruptcy. Most firms do not publish their own fees, however, there is a filing fee of $335 that must be paid to the courts. It is important to conduct extensive research before proceeding. Find the right fit for you and your needs.
From all of us at Wilson Law Firm, we hope that you have found this post informative. We strive to provide better service and care to our surrounding communities in Kentucky and Tennessee. If you have further questions, or feel the need for legal counsel, reach out to us by giving us a call today.
In Kentucky, call (270) 388-9951, or for our Tennessee office call (931) 647-9976. You can also like our Facebook page, or shoot us an e-mail! We would be happy to assist you.
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