Sapinski Law Office, S.C. - Separating Fact from Fiction
Bankruptcy - the mere mention of this word stirs emotions within people. Whether you realize it or not, most of the emotion that you feel when you hear that word is based on things you have head from others, read in the news, or seen on the TV. In reality, you may be getting a lot of mistaken information even from people who have your best interests in mind. There are many myths surrounding bankruptcy. Some of the most common are:
When you file Chapter 7 bankruptcy, a trustee is appointed to your case with the authority to seize your assets, liquidate them, and distribute the proceeds to your creditors; however, he or she can only take assets that have not been declared exempt. Every state has its own set of exemption laws, and the Wisconsin laws are some of the best. Nearly every client who comes into my office finds that all of their assets are exempt and they are relieved to learn they won't stand to lose anything if they file bankruptcy.
Even in the rare case that your assets are not exempt, you can still file bankruptcy without forfeiting your possessions. People with non-exempt assets can file Chapter 13 bankruptcy in order to save their property. Also, if your lawyer is knowledgeable enough, he or she may be able to help you make your non-exempt assets exempt through a process called exemption planning. If you don't engage in exemption planning properly, you can be accused of fraud. It is strongly suggested that you first consult an experienced bankruptcy attorney before you start any exemption planning.
Myth 2: Bankruptcy will destroy my credit score for 10 years.
The fact that you have filed for bankruptcy can remain on your credit report for 10 years. If you currently have a decent credit score (in the 700s), bankruptcy may decrease it into the low 500s. Please be aware that this does not mean your score will stay that low for 10 years. Even though a bankruptcy notation will remain on your credit report, I have discovered that there are certain things that can be done before, during, and after bankruptcy to dramatically offset the impact the bankruptcy notation will have on your score. My step-by-step credit restoration program can help you. Many of my clients who have followed my revolutionary program have seen their credit scores escalate back into the 700s within two years of filing bankruptcy.
If you have judgments, a pending foreclosure, or if you are behind on your bills, your credit score may already be low, and filing bankruptcy will likely cause little - if any - initial drop in your score. Even in these cases, if you follow my credit restoration program, you can get your score into the 700s quite quickly. Within two years after bankruptcy, you may find yourself enjoying the best credit you have ever had.
Myth 3: All my debts will be discharged if I file bankruptcy.
Certain debts such as child support, most student loans, some gambling debts, and recent tax debts will not go away even if you file bankruptcy. Some debts you may not want to eliminate. For example, in the case of secured loans for which the lender has a lien on something you wish to keep, such as your house or your car, you may decide to continue paying that creditor. By continuing to make the payments, you can keep the lender from foreclosing on their lien and thus keep your property. In some cases, the creditor may send you a reaffirmation agreement to sign. These agreements are voluntary and officially exclude a creditor from the bankruptcy discharge. If one is mailed to my firm during your bankruptcy, I will contact you, review it with you, and discuss the pros and cons of the agreement.
Myth 4: It is hard to qualify for bankruptcy.
Ever since Congress reformed the Bankruptcy Code in 2005, it has been harder to file Chapter 7 bankruptcy; however, it is not as hard as you might think. An experienced bankruptcy attorney should be able to help you find a way to file bankruptcy. If there is no way you can file under Chapter 7, you should still be eligible for relief under Chapter 13. I almost never encounter a situation in which someone who is seeking bankruptcy cannot file under Chapter 7 or 13.
Myth 5: If I file bankruptcy, it will be hard to obtain credit in the future.
This is not true, especially if you follow my credit restoration program. Believe it or not, clients who follow my program get offers from credit card companies within months after bankruptcy. They also obtain secured loans such as car loans right away. The interest rate on these loans can be relatively high if they are obtained right after bankruptcy. The longer you wait after bankruptcy to obtain the loan, the lower the rate is likely to be.
Myth 6: If I file bankruptcy, others will find out.
Most people won't find out about your bankruptcy unless you tell them or give them access to your credit report. While bankruptcy filings are a matter of public record, they are not as accessible as you might think. The bankruptcy filing won't appear on the Wisconsin Circuit Court System (WCCA) website, because that site only pertains to STATE criminal and civil cases. Bankruptcy cases are filed in Federal Court. Access to Federal Court cases requires one to pay for an account with the federal court system and the use of a special username and password. Very few people have these accounts. Also, few newspapers report bankruptcies anymore, unless the person filing bankruptcy is famous or the case filing is newsworthy.
Proven & Personalized Bankruptcy Representation from Sapinski Law Office, S.C.
Bankruptcy is confusing. The process is complicated, and there is a great deal of misinformation out there. As an experienced Milwaukee bankruptcy attorney with more than 14 years of legal practice to my name, I am familiar with the proper way to pursue bankruptcy and can help you separate truth from urban legend. I love what I do because it allows me to help people every day. If you are working with me to achieve financial freedom, you can rest easy knowing that you are in good hands.
Contact my team at Sapinski Law Office, S.C. today for more information and to enjoy a free case consultation.