William H. Oliver, Jr. & Associates

Se Habla Espanol

Free Initial Consultation

Local 732-988-1500
Menu / Navigate View Our Practice Areas

Don't believe these bankruptcy myths

In one year during this decade, one tech provider estimated that as many as 1.25 million Americans filed bankruptcy petitions. That number was actually a decrease from the 1.38 million the prior year.

Despite the popularity of the strategy to get out of the deepest debts, some myths still center around consumer bankruptcies. Let's wipe out these misguided notions once and for all.

-- Only financially irresponsible people file for bankruptcy. There are many reasons why consumers may need to file for Chapter 7 or 13, including medical bills after a serious illness or accident and financial hardships due to divorce or termination from employment.

-- You can run up the plastic right before filing for bankruptcy without penalty. The court considers this to be a fraudulent action, and fraudulently incurred debts are non-dischargeable in a bankruptcy.

-- All your debts get wiped out in a bankruptcy discharge. Child and spousal support don't go away with bankruptcy. Neither does criminal restitution and most student loans and tax debts.

-- Forget about getting credit after filing for bankruptcy. There's a whole branch of the credit card industry focused on offering credit to those coming out of bankruptcy discharges.

-- Bankruptcy is for everyone. It's not. It's the nuclear option when other options have failed to get you out of debt. Remember, too, that the same bad spending habits and patterns that landed you in financial hot water this time can do it again.

Take advantage of what you learn in the mandatory credit counseling session and apply the financial techniques to your life post-bankruptcy to keep your fiscal futures sunny.

Source: U.S. News & World Report, "5 Bankruptcy Myths Debunked," Susan Johnston Taylor, accessed Feb. 10, 2017

No Comments

Leave a comment
Comment Information

Get Help Now

Bold labels are required.

Please note that First AND/OR Last Name, and Email AND/OR Phone are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

FindLaw Network

At the law offices of William H. Oliver, Jr. & Associates in Toms River and Lakewood, New Jersey, we represent clients in Toms River, Neptune, Trenton, Middletown, Red Bank, Wall, Lakewood, Lakehurst, Manchester, Asbury Park, Old Bridge, Jamesburg, Barnegat, Forked River, Manahawkin, Ocean Township, Brick, Manasquan, Howell, Freehold, Hazlet, Bradley Beach, Brown Mills, Long Branch, Keansburg, Marlboro, Bayville, Beachwood, Whiting, Sayreville, South River, East Brunswick, Monmouth County, Ocean County, Middlesex County, Burlington County and Mercer County.