More Arizona Bankruptcy Myths-Sayonara Stigma.
Last night I was a guest speaker at KTAR in Arizona (thanks again to Bruce St. James and Marge Peck for a wonderful event), discussing short sale, foreclosure and bankruptcy issues. The event was for Phoenix Arizona distressed homeowners, to educate themselves on their choices regarding their properties.
A vast majority of the questions addressed to me related to “Bankruptcy Myths” and the stigma associated with filing bankruptcy in Arizona. I left the event astonished at the wealth of misinformation the general public is given relating to bankruptcy. Once I educated the attendees on the facts about Phoenix Arizona Bankruptcy they realized that Bankruptcy myths and stigma are exactly that, mythical misinformation which creates a negative stigma.
Here is a list of some myths and the real truth about them:
1) If I file bankruptcy I can never own a home again. WRONG! You will be able to buy a home in the future. The time you have to wait depends on the type of financing (see blog http://drbankruptcyaz.com/bankruptcy-blog/the-waiting-game-how-long-do-you-have-to-wait-to-buy-a-house-again/ for the timelines).
2) I will not get credit for 10 years after filing bankruptcy. WRONG! You will get credit card solicitations in the mail the day after you file. For a creditor, you are the perfect candidate for credit. You are out of debt and can not file another bankruptcy for quite some time. Keep in mind the interest rates will be high, but if you make timely payments, you will likely be able to refinance after a year.
3) I can not keep any of my property when I file bankruptcy. WRONG! You get exemptions for all your personal assets, which means the equity in your property is protected (see http://drbankruptcyaz.com/resources/ for a list of exemptions).
4) I can not have a job and file bankruptcy. WRONG! You can absolutely be employed and file for bankruptcy. Your income determines which chapter you qualify for, either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy (see http://drbankruptcyaz.com/bankruptcy-blog/arizona-average-household-incomes-do-you-qualify-for-a-chapter-7-bankruptcy/ for a discussion on income qualifications).
5) I will not be able to get a job after filing bankruptcy. WRONG! Bankruptcy is a government program, therefore, an employer can not discriminate against you for filing a bankruptcy.
6) Bankruptcy is immoral and I MUST pay back my debt. WRONG! It is a noble virtue to want to repay your debt, but in this day and age you have to look out for #1 because everyone else is doing the same. If you are struggling to pay everyday living expenses in order to maintain creditor payments, there is a problem. If you are making payments on your debt, but due to interest rates and fees the debt is not going down, there is a problem. The banks have gotten their bail out, you have a right to one as well.
7) If I file bankruptcy everyone will find out. WRONG! It is public record, but the individual would need to seek out the information in a database.
8) I’m recently married, all my debts are my own, and I don’t want to drag my new spouse into this. YOU DON’T HAVE TO! You can file separately and keep your spouses credit unharmed.
9) I have to much/too little debt to file bankruptcy. WRONG! There is no minimum or maximum debt limits in a Chapter 7 Bankruptcy.
10) I can protect my property by hiding it. WRONG! You must disclose all assets/debts or risk being criminally charged and fined.
These are just 10 of the more popular misconceptions, and believe me there are a lot more. If you are interested in finding out more about your debt situation, to determine the best course of action to get out of financial stress, call us at (480) 540-3815 or email info@mmwazlaw.com to schedule a free consultation. Our objective is to educate you on your rights, not sell you on bankruptcy.
