It is common for individuals who are considering filing for bankruptcy to have reservations about the process. There is a stigma associated with bankruptcy that is hard to shake. However, bankruptcy can be a beneficial tool for many individuals who are suffering financially and need a fresh start. If you have reservations about filing for bankruptcy, it is important to understand that there are many myths regarding the process.
To get a better understanding of bankruptcy, continue reading to discover the myths that are commonly associated with filing. Reach out to our experienced New York bankruptcy attorney who will walk you through each step of the way. We would be happy to answer any questions you may have regarding your hesitations about making a huge life decision such as this. We understand the stigma that is attached to bankruptcy and want to have an open and honest conversation with all of our clients. Give our firm a call today to learn more about services and how we can assist your financial situation for the better.
Top 5 Myths About Bankruptcy
- You could go to jail if you file for bankruptcy: This is simply untrue. There are specific laws put into place that allow individuals to file for bankruptcy. Thousands of individuals file for Chapter 13 and Chapter 7 bankruptcy every year.
- You will lose all of your belongings: Chapter 7 bankruptcy completely discharges certain debts while still allowing you to keep your home and all of your additional possessions. The myth that you will lose all of your belongings is completely false. In Chapter 13 bankruptcy, you may keep all your assets. However, their value will be added to your repayment plan.
- If you are married, you and your spouse will both have to file for bankruptcy: You and your spouse do not share liability for the debt accrued by one spouse. If one spouse is liable for debt, both spouses do not have to file for bankruptcy.
- Bankruptcy can prevent you from getting credit: You can typically secure a new line of credit soon after filing, though it may be more challenging in the first few months after filing for bankruptcy. However, there are some circumstances that might prevent you from getting credit, but this is not common.
- You have to pay off all of your debts before filing for bankruptcy: If your debts are worth more than half of your annual income and you are not capable of paying this debt off within five years, bankruptcy is most likely your best legal option. However, if this is not the case, you should pay off your debt before filing for bankruptcy.
If you are considering filing for bankruptcy, do not hesitate to reach out to our firm today to discuss your options and how we can assist this process. Give our experienced bankruptcy attorney a call to schedule your initial consultation.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.