Bankruptcy Myths Exploded For Your Benefit

There are many bankruptcy myths floating around and being passed on as truths, which can easily affect someone’s decision as to whether or not go the bankruptcy route. Here you will find some of those myths clarified.

Myth – If you have a job you are not eligible to file for bankruptcy.
Truth – The US Bankruptcy code specifically says that you should have a job to be eligible to file     under Chapter 13.

Myth – You cannot include medical bills under bankruptcy
Truth – All unsecured debts are dischargeable under bankruptcy and that includes medical bills,     credit card bills, personal loans, and so on.

Myth – You have to repay your debts in full when you file for bankruptcy under Chapter 13
Truth – Chapter 13 under the US Bankruptcy Code advises repayment of debts that range from     0% to 100%. The actual percentage is always dependent upon your financial history,     priority of debts, your present property and the value of your disposable income.

Myth – When you file for bankruptcy you lose everything you have; you are literally left with     just the clothes on your back
Truth – As many as 95% of the bankruptcy cases filed do not cover a number of assets and hence     the debtor keeps them. An attorney would be able to help with salvaging a good portion     of assets.

Source:   Bankruptcy Myths Exploded For Your Benefit

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