Bankruptcy Myths

There are many rules in bankruptcy, the forms may seem daunting and the process may seem confusing. That being said, this should not stop you from reaping the benefits of a fresh start. The Law Bankruptcy Law Firm of Clare Casas can represent you and guide you through the process in a straightforward manner.

If you are considering filing a bankruptcy petition, chances are that your credit has already taken a hit. It is possible, however, to rebuild your credit after filing for Bankruptcy. Initially, financial institutions may request additional money for down payments and your interest rates will be higher, but if you make your payments by the due date, your credit score will begin to improve and ascend in time.

In Florida, there are exemptions granted by Florida Statute 222 and the Florida Constitution that protect your house, IRA's, retirement plans, household goods, furnishings, autos and other personal items. In Chapter 13, even if the value of your property is more than the exemptions protect, you can usually keep what you own by paying the trustee on the value of the non-exempt portion of the property.

Yes, it is true that a bankruptcy filing is a court proceeding and part of public records (such as court filings) can be accessed by anyone. However, it's unlikely that anyone other than your creditors and those that you personally tell, will know. Unless someone has a specific reason to look up this information, it is not likely that anyone will find out.

In Florida, creditors have five years in which to sue you. Thereafter, creditors have an additional twenty years to collect on the judgment.

In the majority of cases, unless you choose to tell your employer that you filed bankruptcy, they will not find out. Even if they do find out, employers are not allowed to fire someone for filing bankruptcy.

IF you've already filed bankruptcy once before, there are rules regarding when you can file again, you do not automatically lose the eligibility to file a second time simply because you filed once in your life.

Debt consolidation programs require payments over three to four years. If you are eligible for a Chapter 7 bankruptcy, you are able to obtain a clean slate within three to four months.

Debt consolidation plans affect your credit score negatively and will appear on your credit report during the length of the plan (three to four years) plus the subsequent years that the account continues to appear on your credit report will show that the account was paid through a consolidation program.

If you file a Chapter 7 Bankruptcy, it will appear on your credit report for 10 years while a Chapter 13 Bankruptcy appears for 7 years. That being said, your credit score will start rebuilding itself once you receive the discharge of your debts upon the conclusion of your case and you will be debt free.

The Bankruptcy Law Firm of Clare Casas handles bankruptcy cases in Hollywood, Fort Lauderdale, Plantation, Pembroke Pines, Sunrise, Cooper City, Coconut Creek, Davie, Dania, Deerfield Beach, Hollywood, Hallandale, Inverrary, Lauderdale-By-The-Sea, Lauderdale Lakes, Lauderhill, Margate, Lighthouse Point, North Lauderdale, Miramar, Oakland Park, Pembroke Park, Tamarac, Weston, Wilton Manors, Pompano, Coral Springs, Boca Raton, Delray and South Florida.