(Great Myths of Bankruptcy)

I cant file for Bankruptcy because I have a job. FALSE. Most people who file for bankruptcy have jobs. There is no benefit to quiting your job because you think it means they will accept your Bankruptcy. In fact a person who has a dependant spouse and child is able to earn over a $1,154.00 per week before any contributions have to be made.

I will have to make payments to the government if I go Bankrupt. MOST PEOPLE DON’T.  You will only have to pay if your income is over a certain limit. In the example above the person who has 2 Dependants earns $1,154.00 a week and doesn’t have to pay anything. A person with no dependants can earn nearly $909.00 a week and it is protected.

Only losers go Bankrupt. FALSE. No body plans for debt to get out of control. The fact you were able to get and manage credit means you are a winner. Bankruptcy laws were made because the government knows that good people can hit bad times. During bad times good people need help and do seek help as well. You are not a loser!

They will say I can afford my debts. FALSE. You would be surprised what “they” think people can and cant afford. Think about this! You are allowed to go Bankrupt and as a person with 2 Dependents you can earn $1,154.00 a week and not have to make any payments. Now do you think that “they” think someone with $25,000.00 worth of debt and only earning $700.00 a week can afford their debts. “They” are generally amazed at how long you have struggled for.

I cant ever buy a house for the rest of my life. FALSE. Just because you go bankrupt it doesn’t mean you are barred for life from buying a house. In fact by not going Bankrupt you will probably never buy a house because you cant save a deposit and you cant afford mortgage payments because of your debt.