Myths About Bankruptcy!

I am often surprised by some of the misconceptions that people have about bankruptcy.

Below are some of the more common bankrutpcy myths that I have heard:

1. You can no longer file for Bankruptcy.
2. You can only file for Bankruptcy once.
3. Credit card debts can no longer be discharged in a Bankruptcy.
4. The IRS will audit your prior tax returns if you file for Bankruptcy.
5. The Bankruptcy Court will take all of your property if you file.
6. You can no longer stop a foreclosure by filing for Bankruptcy.
7. If you file for Bankruptcy, you will never be able to get any new credit for anything.
8. You can never own a home if you have filed for Bankruptcy.
9. If you already own a home you must give up your home if you file for Bankruptcy.
10. You can pick and choose the debts to be included in your Bankruptcy case.
11. You can pick and choose the property you tell the Bankruptcy court about when filing a Bankruptcy.
12. You don’t need a lawyer to file for Bankruptcy because all it involves is filling out a bunch of forms.
13. You can give or transfer property to a relative or someone else you know before filing for Bankruptcy, and that person you gave the property to will be able to keep it.
14. Income tax debt cannot be discharged in a Bankruptcy no matter how old it is.
15. If you’re married, both spouses have to file for Bankruptcy.
16. Only deadbeats file for Bankruptcy.

In future articles, I will give you the true facts about Bankruptcy.

by Kevin Gipson, New Orleans, Louisiana bankruptcy lawyer.