When a person files for bankruptcy, it’s usually because, for them, it is their last resort for not being able to repay their huge debts. For those who are bankrupt, it even gives them a breather from receiving constant calls for debt collection. However, if you are one of those who have been considering filing bankruptcy, it is important to understand the nitty gritty of it along with the myths that are there about filing Bankruptcy in Orlando. 

Bankrupt people are not responsible with money:

That’s right. There is a general belief that people who are bankrupt are not very good with money and that they are not aware of how to manage it. That, however, is not really the case. People who usually go bankrupt, don’t do so because they have a gambling problem, but because of other reasons like divorce, loss of jobs, and severe health issues.

All debt can be discharged:

Is that really true? Well, not really. Usually, the debts that can be discharged by a person depend on a number of factors. These are usually the kinds of debt a person has and the kinds of bankruptcy they have filed. Two types of bankruptcy can be filed:

• Chapter 7: This can allow a person to discharge the majority of the debt that they have.

• Chapter 13: Under this, the bankruptcy is managed under a different payment plan, which helps the person manage the repayment process. 

However, it is still important to note that while certain debts can be discharged, the same cannot be done in the case of child support and income tax.

Spouses must file bankruptcy together:

Well, it is quite true that married people can choose to file bankruptcy jointly. However, that is not really necessary, and only one person can file for bankruptcy. It should typically be the partner who has more debt.

You can make large purchases before filing:

Some people believe that if they make a large purchase just before filing Chapter 7 bankruptcy, their debts will be discharged. That is not true, as the court will review your history and all the purchases. And if they see something odd, like a big purchase, right before declaring bankruptcy, it will be considered bankruptcy fraud.

Final thoughts:

If you want to learn more about your options after going bankrupt, get in touch with a bankruptcy attorney today.