Rick Vaughn, Categories: Myth: Filing bankruptcy will hurt your credit for 10 years.
You are getting 2 completely different scenarios confused with each other. You are getting the fact that bankruptcy is reported on your credit report for up to 10 years mixed up with the effect that reporting will have on your credit. By the time you need to make an appointment to see a bankruptcy attorney, your credit is already “jacked up”. Think about it. If your credit is already messed up or maxed out, you…more than likely not…have no credit for bankruptcy to hurt. Also, if you have not re-established good credit in 2 to 4 years after you file bankruptcy, it most likely has nothing to do with the fact that you filed bankruptcy. And it certainly has absolutely nothing to do with the fact that your credit history still shows an old bankruptcy filing.
Myth: If you’re married both you and your spouse have to file for bankruptcy.
Not true at all. There are thousands of cases where a husband or a wife, but not both, filed bankruptcy. In many cases, where husband and wife both have a lot of debt, it makes sense and saves money for them to both file, but it is not a requirement under the law. However, in many situations, there is no good reason at all for the second spouse to file. In those situations, they just file the spouse who needs the help, and leave the other spouse completely out of it.
Myth: It’s really hard to file for bankruptcy.
This depends on the experience of your bankruptcy attorney. The decision to file may be hard, but once the decision is made, is paperwork is extensive but relatively easy. When you want bankruptcy done right, you need to go to an experienced attorney. However, I have noticed a rise in dismissals in my office and mainly that is attributed to people that were confident they would be able to file but overstated their situation or hired a bad attorney. Now they are back to Stage 1; dealing with collection calls again.
The TRUTH is that there are numerous “myths” surrounding bankruptcy but most are over-hyped or urban myths. Let’s not get confused though; it’s still something you want to avoid at all costs. Last but not least, most attorneys get paid when you file. The good ones care about the outcome of your filing but they get paid either way. Just be aware of who you’re paying to taking advice from.
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2 Comments until now.
Is it true, that, if you use full amount on ur credit card, every month, credit value will go down?
Depends are you paying it off? If that is the case then more than likely it will improve your credit score which in the end can get you high limits which can make for better credit
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