{"id":313,"date":"2013-03-14T14:28:19","date_gmt":"2013-03-14T14:28:19","guid":{"rendered":"http:\/\/bankruptcyattorneystl.com\/?p=313"},"modified":"2013-03-14T14:28:19","modified_gmt":"2013-03-14T14:28:19","slug":"myths-and-truths-about-bankruptcy","status":"publish","type":"post","link":"http:\/\/bankruptcyattorneystl.com\/?p=313","title":{"rendered":"Myths and Truths About Bankruptcy"},"content":{"rendered":"

-\u201cI won\u2019t have to pay for my student loans anymore if I file for bankruptcy\u201d<\/p>\n

This, unfortunately, is false.\u00a0 Many people will hear or read on the internet that it is possible to discharge, or no longer be responsible for, student loans when they file for bankruptcy. While in the technical context of the bankruptcy code this is true, it is virtually impossible to actually qualify to have your student loans discharged.\u00a0 This is in large part due to the reforms made to the Bankruptcy code in 2005. Because many people were abusing the bankruptcy system, changes were made to also protect creditors and lenders.\u00a0 So, to qualify to discharge your student loans you must meet a three part standard. First, you must show that you are in a state of permanent disability or poverty, next you must show that there is no possible way this state will ever change in the future, and finally that you have made a good faith effort to pay back your student loans.\u00a0 To many, this section of the bankruptcy code seems to be a Catch 22, in that if you are in a state of poverty, how can you possibly be able to pay back any of your loans.\u00a0 While there are some people who have managed to discharge their student loans, they are of only a hand full of people who have managed to do this.\u00a0 It is extremely uncommon to qualify to do this.\u00a0 In the overwhelming majority of cases, debtors will still be responsible for repaying their student loans post-filing bankruptcy.<\/p>\n

-\u201cI won\u2019t be able to keep my house\u201d<\/p>\n

This is will actually depend on a couple of things, including what type of bankruptcy you are interested in filing, and if you are current on your house.\u00a0 If you are current on your house and do not have a large amount of equity in it, you will most likely be able to file a Chapter 7 or a Chapter 13 bankruptcy.\u00a0 However, if you are behind on your house and still want to keep it, a Chapter 13 bankruptcy would most likely be the better option for you.\u00a0 A Chapter 13 bankruptcy will allow you to take any mortgage arrearage and pay that through a chapter 13 plan.\u00a0 This will break up the arrearage amount over the length of your plan (3-5 years) and make the amount owed on the home more manageable.<\/p>\n

-\u201ccan I keep my car?\u201d<\/p>\n

Cars are treated very similarly to houses in bankruptcy.\u00a0 If you have a loan on your car, and are current on your car payments, you should be able to do a Chapter 7 or a Chapter 13 bankruptcy (assuming you qualify for either in all other areas).\u00a0 However, if you are not current on your car and would like to keep it, a Chapter 13 may be the better option for you.<\/p>\n

-\u201cWill filing for bankruptcy stop a garnishment?\u201d<\/p>\n

Filing for bankruptcy will stop a garnishment of wages due to the protection debtors receive from the automatic stay that goes into effect immediately upon filing.\u00a0 If you are going to have a garnishment starting but it has not yet started, filing a bankruptcy will stop the garnishment.\u00a0 If you have an ongoing garnishment, the filing will also stop it from continuing. If your garnishment is ongoing, it may take a couple of weeks before it actually stops being pulled from your check, due to processing time and when your pay periods fall, but anything garnished post filing has to be returned to you.<\/p>\n

If you have questions regarding your situation, and how a bankruptcy would work for you, contact a St. Louis Bankruptcy<\/a> attorney today!<\/p>\n","protected":false},"excerpt":{"rendered":"

-\u201cI won\u2019t have to pay for my student loans anymore if I file for bankruptcy\u201d This, unfortunately, is false.\u00a0 Many people will hear or read on the internet that it is possible to discharge, or no longer be responsible for, … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,3,53,8],"tags":[],"class_list":["post-313","post","type-post","status-publish","format-standard","hentry","category-bankruptcy-filing","category-bankruptcy-general","category-chapter-13-bankruptcy","category-chapter-7-bankruptcy"],"yoast_head":"\nMyths and Truths About Bankruptcy - St. Louis Bankruptcy Attorneys<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/bankruptcyattorneystl.com\/?p=313\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"St. Louis Bankruptcy Attorney\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313#article\",\"isPartOf\":{\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313\"},\"author\":{\"name\":\"St. Louis Bankruptcy Attorney\",\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/#\\\/schema\\\/person\\\/ffac9d6264cfaf62f3228d9b170a410b\"},\"headline\":\"Myths and Truths About Bankruptcy\",\"datePublished\":\"2013-03-14T14:28:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313\"},\"wordCount\":614,\"articleSection\":[\"Bankruptcy filing\",\"Bankruptcy General\",\"Chapter 13 Bankruptcy\",\"Chapter 7 Bankruptcy\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313\",\"url\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313\",\"name\":\"Myths and Truths About Bankruptcy - St. Louis Bankruptcy Attorneys\",\"isPartOf\":{\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/#website\"},\"datePublished\":\"2013-03-14T14:28:19+00:00\",\"author\":{\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/#\\\/schema\\\/person\\\/ffac9d6264cfaf62f3228d9b170a410b\"},\"breadcrumb\":{\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/?p=313#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Myths and Truths About Bankruptcy\"}]},{\"@type\":\"WebSite\",\"@id\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/#website\",\"url\":\"http:\\\/\\\/bankruptcyattorneystl.com\\\/\",\"name\":\"St. Louis Bankruptcy Attorneys\",\"description\":\"by A & L, Licker Law Firm with offices in Florissant, St. Louis, Manchester, Granite City, and St. Charles. 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