When one has a lot of debts to their name without a means to pay them, they may decide to file for bankruptcy. This will help them to either pay or have the debt claims discharged. Before opting for this legal procedure to deal with debts, there are some myths you need to know especially about the complex Hawaii bankruptcy procedures.
A common myth about insolvency files states that only a completely broke person can file for the insolvency. This is not true. Anyone who has a lot of debts that may sap on his finances and leave him unable to provide for himself can file for the insolvency. This allows them to keep their property and get rid of the debts. Also, a broke client may be unable to pay the lawyer.
Many believe that after one files insolvency, they will never qualify to receive credit. This is false as the debtor can qualify for credit after ten years. The bankruptcy file will be visible on the credit file for only ten years, thus prohibiting you from receiving any credit. After the ten years, you can get the credit which may be very little. The credit offered increases with time.
Another myth is that after an insolvency has been declared, the debtor cannot buy a house afterwards. Most banks will fight over you to offer you a loan even after the insolvency file as long as you have a good financial security and enough down payment. They will compete to give you a mortgage though at a higher interest rate as compared to other people. A debtor can thus apply a mortgage to purchase a house even with an insolvency case in their files.
Filing insolvency does not mean that you will have to lose your house as many people believe. One can either lose or retain the house. This depends on the state as well as if he has a mortgage or not. Having a mortgage means that he has an increased card debt due to less equity as compared to one without a mortgage. This will allow him to keep his property though he is bankrupt.
There is also a misconception that taxes will not be dismissed. This is not true because some taxes are dismissible when one has declared bankrupt. Like personal income tax which has reached three years can be dismissed if it meets certain requirements.
Some myths about insolvency file may lead to a jail term or fine for the debtors. An example of such a myth is one claiming that not all the creditors should be listed in the file. This results in dire consequences especially if the debtor pays the creditor. This is forbidden as it is biased treatment which is prohibited in the legal procedure.
Through the bankruptcy report will be used by a new employer to decide whether to employ you or not, it will not form a reason to get you fired. Once your current boss attempts or dismisses you from the job due to the insolvency, you can sue him in Honolulu, HI courts. This is only done after you prove the as the main reason for the job dismissal. Many people think that once you declare the, it is definite that you will get fired from your job.
A common myth about insolvency files states that only a completely broke person can file for the insolvency. This is not true. Anyone who has a lot of debts that may sap on his finances and leave him unable to provide for himself can file for the insolvency. This allows them to keep their property and get rid of the debts. Also, a broke client may be unable to pay the lawyer.
Many believe that after one files insolvency, they will never qualify to receive credit. This is false as the debtor can qualify for credit after ten years. The bankruptcy file will be visible on the credit file for only ten years, thus prohibiting you from receiving any credit. After the ten years, you can get the credit which may be very little. The credit offered increases with time.
Another myth is that after an insolvency has been declared, the debtor cannot buy a house afterwards. Most banks will fight over you to offer you a loan even after the insolvency file as long as you have a good financial security and enough down payment. They will compete to give you a mortgage though at a higher interest rate as compared to other people. A debtor can thus apply a mortgage to purchase a house even with an insolvency case in their files.
Filing insolvency does not mean that you will have to lose your house as many people believe. One can either lose or retain the house. This depends on the state as well as if he has a mortgage or not. Having a mortgage means that he has an increased card debt due to less equity as compared to one without a mortgage. This will allow him to keep his property though he is bankrupt.
There is also a misconception that taxes will not be dismissed. This is not true because some taxes are dismissible when one has declared bankrupt. Like personal income tax which has reached three years can be dismissed if it meets certain requirements.
Some myths about insolvency file may lead to a jail term or fine for the debtors. An example of such a myth is one claiming that not all the creditors should be listed in the file. This results in dire consequences especially if the debtor pays the creditor. This is forbidden as it is biased treatment which is prohibited in the legal procedure.
Through the bankruptcy report will be used by a new employer to decide whether to employ you or not, it will not form a reason to get you fired. Once your current boss attempts or dismisses you from the job due to the insolvency, you can sue him in Honolulu, HI courts. This is only done after you prove the as the main reason for the job dismissal. Many people think that once you declare the, it is definite that you will get fired from your job.
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