Urban Legend #2 - People File Bankruptcy Because They Live Beyond Their Means
By Keith Rucinski, Akron, OH
Chapter 13 Trustee
“Only people who live beyond their means file bankruptcy.”
When people think of individuals who have filed bankruptcy they often think of people who cannot manage their money and live “beyond their means.” Images of expensive cars and large homes often come to mind, this is not commonly seen with those who file for bankruptcy. This is one of the most common urban legends about bankruptcy and those who seek bankruptcy protection in order to get a fresh financial start.
How Long Does It Take to File Bankruptcy?
Vents Magazine
When considering filing for bankruptcy, many people wonder how long it will take. The process can vary depending on the type of bankruptcy and the individual’s case, but in general, it is usually a few months from beginning to end.
What Can Cause My Chapter 7 Bankruptcy To Be Denied?
Lawyers.com - July 8, 2022
Was your Chapter 7 bankruptcy denied? If so, you may be wondering what happens next. First, you should understand why your Chapter 7 bankruptcy can be denied.
How Much Does It Cost to File Bankruptcy? 3 Things to Know
The Good Men Project - July 14, 2022
The cost to file bankruptcy is $338 for a Chapter 7 bankruptcy and $313 for a Chapter 13 bankruptcy for bankruptcy filings in 2022, but the answer becomes more nuanced and confusing if you decide to file with a bankruptcy attorney and if you are trying to get the filing fees waived.
Why Some Chapter 13 Cases End Before They Ever Get Started
Filing a Chapter 13 case is easy. Keeping it going is the tricky part.
Jeff Narmore, PC
Narmore Law Office
A Chapter 13 case can provide immediate relief and peace of mind. There is a certain element of “instant gratification” that gives it appeal on day one of the case. In many jurisdictions a case can be filed for “no money down.” Spending a few hours at an attorney’s office and signing some paperwork will make the foreclosure, repossession, garnishment or other collection efforts stop, as if by magic.
Nine Things to Look for When Picking a Bankruptcy Lawyer
BFine Administrator
Deciding to file bankruptcy is difficult, stressful, and can seem expensive. It can involve other family members and will have a lasting effect on your financial future.
The process is complicated. It is important to have a good attorney by your side.
How do you pick a good bankruptcy attorney? The choice is very important and it is usually made when you are stressed out. Here are things to consider when picking a lawyer.
BFine Terms You Need to Know
BFine Administrator
Managing your financial future is easier when you understand what is being said. Below are some of the key terms that are used with finance and bankruptcy.
For more definitions visit:
Bankruptcy Urban Legends Part 1
By Keith Rucinski, Akron, OH
Chapter 13 Trustee
“If I file for personal bankruptcy I will lose my car and house, and be left destitute the rest of my life.”
This is one of the most common urban legends about bankruptcy. Filing for bankruptcy does not mean you will lose all your “stuff” and be left destitute. The purpose of bankruptcy is to allow people to get a fresh financial start. Some famous people who have filed bankruptcy to get a fresh start include Harry Truman (33rd President of the United States), Walt Disney, and Henry Ford.
Chapter 7 Bankruptcy: What Is It, and Is It Right for You?
Forbes Advisor - June 2, 2022
Chapter 7 bankruptcy is the bankruptcy filing most often used by consumers. It provides protection from creditors, puts a stop to most collection efforts and can eventually wipe debts away.
It's the Law: What can I keep in bankruptcy?
Post Register - May 29, 2022
Many people wonder if they file for bankruptcy, what will they get to “keep?” Will they get to keep a house, a car, or an investment property?
My dad declared bankruptcy. What happens to mom’s credit?
NJ Moneyhelp - Nov. 23, 2021
Q. My father declared bankruptcy without telling my mother. How will this affect her credit?
Bankruptcy offers a fresh start after a financial crunch and helps creditors get their fair share of what's left
Business Insider - Dec. 17, 2021
Bankruptcy is a legal process that helps individuals and businesses resolve outstanding debts while also fairly managing the payments owed to creditors. Creditors involved in bankruptcy proceedings, however, typically don't receive full payment.
Is 401(k) safe in bankruptcy?
Bankrate - May 27, 2022
If you are filing for bankruptcy, you will likely be relieved to hear that, yes, your 401(k) is generally safe in bankruptcy.
Buying A House After Bankruptcy
Forbes - Nov. 30, 2021
Buying a house can be a challenge in itself, but if you’ve had to file for bankruptcy, owning a home may seem all the more difficult to achieve.
5 Ways to Get Financing With a Bankruptcy in Your Past
The Motley Fool - Dec. 15, 2021
Just because you've had a bankruptcy doesn't mean you can't get financing to invest in real estate. Find out how.
How Chapter 13 Bankruptcy Works in Texas
Legalreader.com - June 1, 2022
You may make a good income but are unable to afford your debts, so you are looking at a Chapter 13 bankruptcy in Texas. Filing Chapter 13 bankruptcy is a big decision. You are committing to a bankruptcy repayment plan that could last for up to five years.
Bradley’s Bankruptcy Basics: The Automatic Stay and the “Why” Behind the Warnings: What Happens Once a Debtor Files for Bankruptcy?
National Law Review - Jan. 19, 2022
Many creditors have been warned of the need to halt collection efforts once they are put on notice that a debtor has filed for bankruptcy.
Will My Income From Cannabis Affect My Bankruptcy?
Lawyers.com - May 31, 2022
Are you considering filing for bankruptcy? Do you receive any income from the sale of cannabis or cannabis products?
Bankruptcy Attorney: Specifics of hiring a professional in 2021
FingerLakes1 - Dec. 1, 2021
The question you are asking yourself now is whether you need to hire a professional to solve your bankruptcy problems. And the answer is yes.
A person in possession of a debtor’s property upon a bankruptcy filing now has more guidance from the Supreme Court as to the effect of the automatic stay.
JDSupra - Nov. 3, 2021
A person in possession of a debtor’s property upon a bankruptcy filing now has more guidance from the Supreme Court as to the effect of the automatic stay.
Study Reveals Racial Bias in Bankruptcy Cases
Ebony - Nov. 2, 2021
According to a recent study, approximately 30 percent of African-American filers are more likely to have their bankruptcy cases dismissed than non-Black bankruptcy filers, Yahoo News reports.
Bankruptcies Continue To Decline
National Mortgage Professional - Jan. 5, 2022
Total new filings for bankruptcy were down 24.2% from 2020..
Bankruptcy Filings Continue Steady Drop
US Courts - May 17, 2022
Bankruptcy filings continued a steep two-year-long fall that coincided with the start of the coronavirus (COVID-19).
A public education project of the National Association of Chapter Thirteen Trustees
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