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 No. 1: Filing Bankruptcy Can be Pricey. For less than you will spend on your credit card payments and other monthly payments, you can probably pay a bankruptcy lawyer and court costs. What’s it worth to you to no longer owe your debt? I’d say significantly more that the cost you’ll incur. Creditors tell you, “Just pay the money to me.” Don’t be deceived when they say that.

Myth 2: You may lose your property in a bankruptcy: If you have property that is encumbered by a mortgage, you will have to work through some method of paying the mortgage even inside abankruptcy case. That is exactly the reason the lender asked for the mortgage when you borrowed the money. However, in most circumstances, with the exception of property on which you’ve granted a lien (mortgage) like on a car, house or boat, you will be able to retain your other property when you file a bankruptcy case. Attorney Dan Scott answers this question in his video series found at http://www.danwillhelp.com. Under most circumstances you will be able to use your exemptions to keep property that is not encumbered by a lien.

Myth 3: Not all your debt can be discharged. Let’s get past this. If you owe money for student loans, claims arising from fraud, back child support, DUI fines or penalties or certain taxes, those debts will survive the bankruptcy. However, except for those debts almost all your other debts will be discharged. If you decide to file a chapter 13 case rather than a chapter 7 case For the difference between a Chapter 7 and a Chapter 13 check out the video at http://www.danwillhelp.com) you’ll pay payments over time that often clears all of your debt except your home mortgage. Just understand that even though a few debts will survive your bankruptcy case, most will be wiped away.

Everyone knows someone, and usually many “someones” who are having financial challenges. With all the layoffs and cutbacks money problems are the norm, not the exception. Don’t avoid looking into bankruptcy just because of uncertainty. You may want to take a look at the video series published by experienced bankruptcy lawyer Dan Scott at http://www.danwillhelp.com.

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!