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SECRET NO. 1: MOST PEOPLE KEEP ALL OF
THEIR PROPERTY
The Bankruptcy Code provides for you to keep
your home, cars, furniture, appliances,
retirement plans, and other essentials that
you need to get a fresh start. Although it
is true that there are limits to the values
of what you can keep in bankruptcy, those
limits are very generous, and most people
are not required to give up anything. In
general, fears of losing property in
bankruptcy are overblown by the credit
industry.
SECRET NO. 2: YOU DON’T NEED TO BE BROKE
TO FILE FOR BANKRUPTCY
You can be employed, have a bank account,
and own property up to certain limits as of
the date your bankruptcy case is filed. Once
your case is filed, you can acquire any new
property you want, and no one – the courts,
the trustee, or your creditors – can touch
it. Special rules do, however, affect
inheritance rights and a limited number of
other "windfall" acquisitions, such as
winning the lottery, within the six months
after your case is filed.
SECRET NO. 3: THERE IS NO MINIMUM AMOUNT
OF DEBT REQUIRED FOR BANKRUPTCY
Bankruptcy is designed for people who are
unable to repay their existing debts, and
there is no requirement that you owe a
certain amount before you can declare
bankruptcy. The ability to file bankruptcy
is based on the amount of your debt compared
to your income. Many people file for
bankruptcy who owe relatively little money,
and many people who owe a great deal of
money do not have the need to file for
bankruptcy.
SECRET NO. 4: A BANKRUPTCY FILING IS NOT
"THE KISS OF DEATH" TO YOUR CREDIT RATING
While we hope you will not go into
bankruptcy with the intent of getting back
into debt, the negative impact of bankruptcy
on credit is extremely exaggerated. After
you receive your bankruptcy discharge, it
won’t be long before you begin receiving
credit card offers again. However, these
early offers are usually at very high
interest rates, and should be avoided. Once
you have put together a savings plan and
have started to build your "cash cushion,"
you will be able to begin thinking about new
credit. If you have kept your home, car, or
other collateral and have continued to make
prompt payments during and after the
bankruptcy, your credit score will gradually
improve. After about two years
post-bankruptcy, you will be able to obtain
reasonable interest rates on mortgage,
vehicle, and credit card debt. The
bankruptcy case will remain on your credit
report for 10 years after the filing date,
but will have less and less impact on your
credit score as the years go by.
SECRET NO. 5: YOUR BANKRUPTCY CASE WILL
NOT BECOME PUBLIC KNOWLEDGE
Bankruptcy filings are not reported in the
newspaper or otherwise revealed to the
public. While it is true that a bankruptcy
case is filed in federal court and is of
public record, it is extremely unlikely that
anyone you know will go to the courthouse
and find out that you have filed a case. You
should be aware, however, that if you file a
Chapter 13 bankruptcy case, the trustee may
require that your payments to the trustee be
made through payroll deductions. In that
case, the payroll department of your
employer would be informed that you are
involved in a Chapter 13 bankruptcy case.
SECRET NO. 6: YOUR SPOUSE MAY NOT HAVE TO
FILE FOR BANKRUPTCY WITH YOU
It is not uncommon for one spouse to be able
to file a bankruptcy case, and allow the
other spouse to remain outside the case.
Each couple’s situation must be fully
evaluated before such a determination is
made, but every effort will be made to allow
only one spouse to declare bankruptcy.
SECRET NO. 7: YOU ARE NOT ALONE
Every person going through bankruptcy feels
alone. Nothing could be further from the
truth. Over 1,000,000 Americans filed for
bankruptcy in 2008, and the rate continues
to climb sharply. You undoubtedly know
people who have filed for bankruptcy,
although they may not have shared that
information with you. The many famous
individuals and companies who have filed for
bankruptcy include:
President Abraham Lincoln
Author Mark Twain
Automobile Manufacturer Henry Ford
Hall of Fame Quarterback Johnny Unitas
Hollywood Director Francis Ford Coppola
Television Personality Larry King
Actor Mickey Rooney
Actor Burt Reynolds
Actress Kim Bassinger
Entertainer Jerry Lee Lewis
Entertainer Wayne Newton
Entertainer Toni Braxton
Continental Airlines
United Airlines
US Airways (twice)
There is absolutely no reason to feel guilty
about filing bankruptcy, especially if you
use it as an opportunity to provide future
financial happiness and security for your
family. All of these people went bankrupt,
yet all of them went on to achieve success
in their fields. So remember that while your
financial problems are serious, they aren’t
the end of the world. Declaring bankruptcy
is often the beginning of your new world of
financial freedom.
SECRET NO. 8: KRAFT & ASSOCIATES IS HERE
TO HELP YOU
Kathleen Munden, the lawyer who manages the
Consumer Protection Department at Kraft &
Associates, has over 13 years of experience
in providing individuals with bankruptcy
assistance. We offer a free, no obligation
consultation with Ms. Munden, to discuss
your individual financial circumstances and
develop a plan to solve your financial
issues. Ms. Munden will continue to work
closely with you, and you will not be passed
along to a paralegal or assistant after your
first consultation, as is common with some
high-volume bankruptcy firms. Kraft &
Associates can help you get the "Fresh
Start" that you deserve. Call Ms. Munden at
(214) 999-9999 or (817) 999-9999, or you can
e-mail her at
kmunden@kraftlaw.com to
arrange for your free consultation.
Kraft & Associates is a federally designated
Debt Relief Agency under the United States
Bankruptcy Code. We assist people with
finding solutions to their debt problems
including, where appropriate, assisting them
with the filing of petitions for relief
under the U.S. Bankruptcy Code.
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