Common Bankruptcy Myths | Here is What You Need to Know

For many individuals in New York State and throughout the country, bankruptcy is the most viable option when push comes to shove. Of course, before filing for bankruptcy, you should examine all of your options to see if there is a potentially less drastic route you can take. However, for many, this is simply not the case, and bankruptcy is truly the breath of fresh air they need. That being said, many Americans are wrongfully scared to file for bankruptcy, and this is simply because there is a certain stigma surrounding bankruptcy in NY. For this very reason, our experienced New York bankruptcy attorney is here to put those rumors to bed once and for all so you can obtain a solid understanding of what bankruptcy is truly about. Some of the most common myths surrounding bankruptcy are as follows:

  1. I will never be able to get credit again if I file for bankruptcy. This is one of the most common bankruptcy myths. While yes, in the first few months after filing, it may be a little more difficult to obtain credit, once those first few months pass, it will become far easier to do so.
  2. Both my spouse and I will have to file for bankruptcy. Also not true. Though spouses to share liability for all debts, the truth is, if only one spouse is responsible for the debt, both spouses are not obligated to file for bankruptcy.
  3. I can go to jail for filing for bankruptcy. This is 100% untrue. Federal law mandates that anyone who qualifies should be allowed to file for bankruptcy. There would not be bankruptcy lawyers if it was illegal to file.
  4. I will lose all of my possessions and my home. Once again, absolutely not. Chapter 7 bankruptcy will completely discharge many debts, all while enabling you to keep your home and protect many other possessions from collection activities. Furthermore, Chapter 13 bankruptcy allows people to keep all of their assets.
  5. I will have to pay off all of my debts before I file for bankruptcy. Wrong again. In most cases, when debts are worth more than have of an individual’s annual income and that person cannot pay off those debts in five years, bankruptcy is most likely the best option.

For any additional questions, give us a call today. We are always here to help.

Contact our experienced New York firm

The Law Offices of Allen A. Kolber, Esq. effectively represents clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.