Bankruptcy myths debunked - Ahwatukee Foothills News: Business

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Bankruptcy myths debunked

Print
Font Size:
Default font size
Larger font size

Posted: Sunday, March 8, 2009 11:00 pm

With so many facing job loss, foreclosure and shrinking income, accurate information about your rights and options is key. We frequently hear radio ads and see media that claim to inform us about bankruptcy. These sources of information are not always accurate and are sometimes purposely misleading.

Let's face the facts about bankruptcy:

 

- Myth - You must pay back your debts in bankruptcy.

Truth - Under Chapter 7 bankruptcy you are not required to repay debts, except for taxes, student loans and child support, generally. Chapter 13 bankruptcy will require a three- to five-year payment plan. The goal isn't necessarily to pay 100 percent of the debt - it may be to pay only as much as you can afford, which in many cases is very little.

- Myth - You will lose your belongings if you file bankruptcy.

Truth - Arizona law allows you to protect the following assets, within the prescribed values: equity in your home and vehicles, furniture, a watch, wedding set, clothing, tools used in your job and 100 percent of your qualified retirement plan or pension. (This is not a complete list.)

- Myth - You can't buy a house after a bankruptcy.

Truth - You will have a difficult time qualifying for a mortgage for a short time after your bankruptcy discharge. However, before the current crisis, I could tell my clients that two years after their bankruptcy discharge, assuming they kept their credit on track in the meantime, they should be able to qualify without a problem. Because of new lending regulations, this timeframe may be extended.

- Myth - You don't need to hire an attorney to file bankruptcy.

Truth - The truth is that you are not prohibited from filing on your own or paying a non-attorney a nominal fee to prepare the documents for you. However, it is not recommended. You may think the forms are easy enough to fill out, but bankruptcy is not always the most logical area of law. There is a lot of legal analysis that goes into preparing the documents (legal analysis that a document preparer is not qualified to do). There can be harsh implications for innocent mistakes. It's not just as simple as asking the court to dismiss your case when things start to go south.

 

Attorney Denise K. Aguilar is an Ahwatukee Foothills resident and has recently moved her practice to Ahwatukee. She can be reached at (480) 455-1881. Additional information regarding the Aguilar Law Firm, P.C. is accessible at http://www.aguilarlawonline.com/">www.aguilarlawonline.com.

More about

More about

More about

  • Discuss

Supreme Court abortion ruling could have significant impact on Arizona

A new ruling Monday by the U.S. Supreme Court likely voids one Arizona abortion restriction and calls others into question. In a 5-3 decision,…

Published: June 28, 2016 - 11:01 am @ http://azcapitoltimes.com/news/2016/06/27/supreme-…

Graham Nash Talks New Rock-Doc Series, 'Woodstock' Drama

Graham Nash has plenty of experience with the vagaries of rock & roll documentaries. Take Woodstock, for one: "There were three days of re…

Published: June 28, 2016 - 10:48 am @ http://www.rollingstone.com/music/news/graham-nash…

Buddy Ryan, Architect Of '85 Bears Defense, Dies At 82

(AP) Buddy Ryan, the pugnacious coach who masterminded two fierce defenses that won Super Bowl titles and whose twin sons have been successful…

Published: June 28, 2016 - 10:18 am @ http://chicago.cbslocal.com/2016/06/28/report-budd…

Arizona Theatre Company Needs $2 Million to Avoid Closing

Lynn Trimble A A Arizona Theatre Company needs to raise $2 million by Friday, July 1, to continue operations, the company announced on Monday,…

Published: June 28, 2016 - 10:20 am @ http://www.phoenixnewtimes.com/arts/arizona-theatr…

Arizona Theatre Company says it needs $2 million to avoid closing

Arizona Theatre Company is poised to begin its 50th year July 1.

Published: June 28, 2016 - 10:17 am @ http://tucson.com/entertainment/arts-and-theatre/a…

UK Getting Higher-Powered Hyundai Tucson Diesel With 7DCT Gearbox

Hyundai's best selling model in the UK is now being offered with a more potent 141 PS (139 HP) turbo diesel unit, mated to a seven-speed doubl…

Published: June 28, 2016 - 10:00 am @ http://www.carscoops.com/2016/06/uk-getting-higher…

'P' is for phosphate: Could urine solve a fertilizer shortage?

By Tiffany R. Jansen By 2050, researchers predict Earth will host more than 2 billion additional people, and to meet future demands, food prod…

Published: June 28, 2016 - 9:48 am @ http://www.earthmagazine.org/article/p-phosphate-c…

BREAKING: 13 Year Old, Others Block Philadelphia Roads to Protest Deportations

Erick Perez-Hernandez’s parents have been in the US for two year longer than he’s been alive but he is a citizen and they are not. They’ve wai…

Published: June 28, 2016 - 9:18 am @ http://www.notonemoredeportation.com/2016/06/28/ph…

Thousands of immigrant kids added to class-action lawsuit over right to counsel

Thousands of unaccompanied immigrant minors facing possible deportation will be swept into class-action status in a lawsuit filed by immigrati…

Published: June 28, 2016 - 9:17 am @ http://latino.foxnews.com/latino/politics/2016/06/…

Happy Birthday to You!

In honor of our upcoming birthday, we put together a list of our favorite places to celebrate. You are cordially invited to celebrate your bir…

Published: June 28, 2016 - 8:49 am @ http://phoenixbites.com/2016/06/27/valley-birthday…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…