Ten Misconceptions about: Bankruptcy

March 16, 2009

Jhdweb
Bankruptcy is a process mainly used by people who are reckless and overspend on luxury items. Reality: the majority of those who file are honest, hardworking people who have fallen on hard times due to no fault of their own.

  1. I can only get rid of credit-card debt in a bankruptcy. Reality: Most debts can be discharged, including credit cards, medical bills, utility bills, personal loans, foreclosures, repossessions, and family debts.
  2. If I file bankruptcy, I will have to pay a large tax penalty for the debt I discharge. Reality: You will not be taxed on the debt discharged in a bankruptcy.
  3. Once I file bankruptcy, I will carry a stigma around forever. Reality: There is no longer a bankruptcy stigma; people can continue to live their lives essentially in the same manner they had before bankruptcy.

You may read more at the link below.

by: Justin H. Dion, Esq.

BusinessWest
March 16, 2009

Download the full PDF version: