If you are going through financial strain, one can choose to file for bankruptcy as a relief from immense debt. This is a legal procedure where one appears before a judge to lay down a payment plan or get a discharge from most of the debt if not all. Hawaii Bankruptcy law is quite complicated, and it requires time to study and understand. However, there are a number of misinterpretations that one should know before making up your mind to follow this path.
The main myth about insolvency claims that a debtor cannot file an insolvency charge unless they are completely broke. This is not the case as the broke person is unable to pay a lawyer who is essential in the procedure. An insolvency case can be filed by anyone unable to pay debts. By the debtor paying the dues, he may end up being dependent on the state to live. The insolvency file thus allows a desperate debtor to still hold on to his property.
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.
After filing insolvency, one can still get a mortgage for a house. It is a common belief that this will not be possible for a debtor with an insolvency file to their name. Unlike the common beliefs, they will be bombarded by banks waiting to offer them mortgages as long as they have a sufficient security and enough down payment for the mortgage.
A house owner losing their property after declaring insolvency is also another misconception. This situation is optional depending on the state as some allow the debtor to retain their property. Before taking the house, the debtor is also analyzed to determine whether he currently has a mortgage. Having a mortgage results in less equity and an increase in the credit card debt thus they are allowed to keep the house.
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.
People believe that they can declare bankrupt but not list some creditors in their report. This is wrong because this procedure requires all creditors be treated equally. If by any chance a creditor is not listed, and the debtor decides to pay him, the debtor is seen as biased, and the court sees that as fraud, and they can discharge the debtor or even have him jailed and fined.
It is also not a guarantee that you will lose your current job. After filing for insolvency in Honolulu, HI as it is believed. Once your boss fires you due to the insolvency case, you can sue him/her. To do this, you need to fully prove that the insolvency case is the basis of the job dismissal. The debtor though has to note that while looking for a new job, the boss can use the insolvency report to determine whether to employ you or not.
The main myth about insolvency claims that a debtor cannot file an insolvency charge unless they are completely broke. This is not the case as the broke person is unable to pay a lawyer who is essential in the procedure. An insolvency case can be filed by anyone unable to pay debts. By the debtor paying the dues, he may end up being dependent on the state to live. The insolvency file thus allows a desperate debtor to still hold on to his property.
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.
After filing insolvency, one can still get a mortgage for a house. It is a common belief that this will not be possible for a debtor with an insolvency file to their name. Unlike the common beliefs, they will be bombarded by banks waiting to offer them mortgages as long as they have a sufficient security and enough down payment for the mortgage.
A house owner losing their property after declaring insolvency is also another misconception. This situation is optional depending on the state as some allow the debtor to retain their property. Before taking the house, the debtor is also analyzed to determine whether he currently has a mortgage. Having a mortgage results in less equity and an increase in the credit card debt thus they are allowed to keep the house.
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.
People believe that they can declare bankrupt but not list some creditors in their report. This is wrong because this procedure requires all creditors be treated equally. If by any chance a creditor is not listed, and the debtor decides to pay him, the debtor is seen as biased, and the court sees that as fraud, and they can discharge the debtor or even have him jailed and fined.
It is also not a guarantee that you will lose your current job. After filing for insolvency in Honolulu, HI as it is believed. Once your boss fires you due to the insolvency case, you can sue him/her. To do this, you need to fully prove that the insolvency case is the basis of the job dismissal. The debtor though has to note that while looking for a new job, the boss can use the insolvency report to determine whether to employ you or not.
About the Author:
When you are ready for the facts about Hawaii bankruptcy, pay a visit to our web pages online here today. Additional details are available at http://edmhawaii.com now.
No comments:
Post a Comment