Stop Drowning in Debt | Mortgage

by DanScott

Stop the calls and collection efforts made by creditors by using the bankruptcy process created by Congress. The Congress of the United States established the bankruptcy system specifically to all a person who is financially in debt to get a fresh financial start. Good people, with good intentions often suffer life circumstances that cause them to be in debt with payments much greater than they can reasonably pay.

As the economy worsens the number of bankruptcy filings is rising. The Los Angeles Times reported that in year 2009, there were around 1,446,000 Bankruptcy. In January 2010, there were 102,600 total bankruptcy filings and the number of people filing bankruptcy continues to grow. Experienced Bankruptcy Attorney Dan Scott says that there are 3 Myths aboutBankruptcy that should be dispelled.

There are 3 Myths about Bankruptcy That Must be Dispelled

Myth 1: Filing bankruptcy can be pricey. Of course when you file a bankruptcy case you will have to pay court costs a legal fee to your attorney', and perhaps other miscellaneous fees. The cost will depend on your case or situation. However, when compared with the benefit you will receive (relief from owing all or most of your debts) the cost is minimal. You'll hear some folks say that the money you spend for a bankruptcy likely could be used up bringing past-due accounts, or making the payment arrangements. However, the truth is that if you couldn't make the payments in the past, it is unlikely you will be able to make them in the future.

Myth 2: You may lose your property in a bankruptcy: Obviously if you have a car or house that has a lien or mortgage, you've got to address that lien or mortgage in your bankruptcy case. Usually a deal can be structured inside your bankruptcy case where you can keep making the payments and keep the property. Bankruptcy Attorney Dan Scott, in his video series found at http://www.danwillhelp.com, reveals that in most circumstances you will be able to use your exemptions to keep property that is not encumbered by a lien. Exemptions are simply a procedure established by Congress to allow you to keep property in a bankruptcy case. Don't think for a minute that you'll be able to keep property on which a lien has been granted unless you can make the payments.

Myth 3: Not all your debt can be discharged. This is not exactly a "myth" but it is often over stated. Most of the debt individuals have WILL be discharged in a Chapter 7 Bankruptcy. (For the difference between a Chapter 7 and a Chapter 13 check out the video at http://www.danwillhelp.com.) Unsecured debts such as credit cards and signature loans are dischargeable. However, if you have student loans, back child support, certain taxes debt, claims arising from fraud or a DUI will not be discharged. Yourbankruptcy lawyer can give you more guidance on this.

These are tough times. Every where you turn folks are facing financial challenges. You may want to take a look at the video series published by experienced bankruptcy lawyer Dan Scott at http://www.danwillhelp.com. There's simply no need to avoid bankruptcy just because of uncertainty.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

If you are struggling with your finances it's time to get straight talk from an experienced bankruptcy attorney. Check out the video series which is absolutely free. Take back the power away from your creditors today!