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.
Ten years after the insolvency has been filed, the debtor can apply for credit. Many people assume that after an insolvency, the debtor will never receive credit. This is not true as the insolvency file will appear on your credit report for only ten years, after this period you can get credits. Initially, the credit offered will be very little, but it will increase 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.
Due to myths, people filing for insolvency do not include some of the creditors they owe. This is wrong especially if the debtors pay the unlisted creditor. This will result in a jail term or fine to the debtor. This issue to that the legal procedure aims to ensure all creditors is treated equally thus paying the unlisted creditor is considered as bias treatment.
Another misinterpretation is that one can lose their job if they declared bankrupt. If your boss dismisses you because you have filed for this process, then you can sue him. The only required is to prove that the dismissal was solely on the grounds of been bankrupt. Though there is a condition that if by any chance the debtor tries to look for another job after he has filed for bankruptcy in Honolulu, HI, the new boss can use his bankruptcy report to decide whether to grant him a job 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.
Ten years after the insolvency has been filed, the debtor can apply for credit. Many people assume that after an insolvency, the debtor will never receive credit. This is not true as the insolvency file will appear on your credit report for only ten years, after this period you can get credits. Initially, the credit offered will be very little, but it will increase 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.
Due to myths, people filing for insolvency do not include some of the creditors they owe. This is wrong especially if the debtors pay the unlisted creditor. This will result in a jail term or fine to the debtor. This issue to that the legal procedure aims to ensure all creditors is treated equally thus paying the unlisted creditor is considered as bias treatment.
Another misinterpretation is that one can lose their job if they declared bankrupt. If your boss dismisses you because you have filed for this process, then you can sue him. The only required is to prove that the dismissal was solely on the grounds of been bankrupt. Though there is a condition that if by any chance the debtor tries to look for another job after he has filed for bankruptcy in Honolulu, HI, the new boss can use his bankruptcy report to decide whether to grant him a job or not.
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