Redwood City Bankruptcy: More Misconceptions of Bankruptcy 4-10

Many Redwood City residents have doubts about filing for bankruptcy because they are afraid of the results, but they should have little to fear. Here are common misconceptions about bankruptcy.

4. I'll never get credit again.
It won't be long before credit card companies send in offers again, but they'll be from subprime lenders who charge very high interest rates or the cards will be secured.  There exists a vast number of companies that want to issue people credit cards, and although it is unwise to run up the credit car bill again, people can get a credit card any time they wish.

It is also prudent to buy a house or a car before filing for bankruptcy. After bankruptcy, these loans will be difficult to get and the higher interest rate on such the purchase will have a significant effect on future payments. Also, having a credit card with a zero balance on the day of filing for bankruptcy, individuals do not have to list it as a creditor since there is no money on it; thus, individuals might be able to keep that card even after the bankruptcy.

Call Sagaria Law for a bankruptcy consultation with an experienced attorney in Redwood City.

5. Hiring a lawyer is expensive
Hiring is not as expensive as a person believes because lawyers help debtors find the most efficient way to pay off debts. The cost of getting an attorney pays off for the small payments in the long run because they offer a specialized service in an area other people know little about. Think about how the the benefits of a Chapter 7 discharge or cleaning up mortgage arrears in a Chapter 13 are worth it. Contact a local Redwood City bankruptcy attorney from Sagaria Law to set up an appointment to discuss costs and benefits.

6. It's hard to file for bankruptcy
Filing for bankruptcy can never be easier. It is so simple one does not necessarily need an attory; however, it's not recommended to go through the procedure without one. Attorneys at Sagaria Law are qualified and skilled people who do this work daily. Schedule an appointment with a Sagaria lawyer in Redwood City and learn just how simple it is to file for bankruptcy, with the help of an attorney.

7. Only deadbeats file for bankruptcy.
People file for bankruptcy for different reasons; it is not a shame to do so if things became out of control. Also, take advantage of the system because it is available.  

8. I don't want to include everyone in the bankruptcy
After a debt is discharged, there is now rule that does not allow a person to voluntarily pay back a debt. Please note that bankruptcy is an all-or-nothing deal, so all creditors have to be included in the petition.

9. Filing for bankruptcy will improve my credit rating because all those debts will be gone.
Someday, yes. But, in the short term, filing for bankruptcy is the worst 'negative' you can have on your credit report. Unlike other negatives, which stay on your report for seven years, bankruptcy can be there for 10 years. Significant credit repair can be as quick as 18 months to three years.

10. You can only file for bankruptcy once.
It is possible to file for bankruptcy more than once, but the recent bankruptcy law that went into effect in October 2005 lengthened the required wait between discharges. Now, a Chapter 7 bankruptcy discharge can only be granted once every eight years. For a Chapter 13 filing, there is a two-year waiting period. Also, a person has to wait four years between a Chapter 7 and a Chapter 13 discharge, although a Chapter 13 is voluntary. Just because it is possible to file multiple times, it is not the ideal solution because credit stays repeatedly damaged and lenders charge a higher interest rate.

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