Bankruptcy can bring considerable improvements to those that choose to file, but it is often associated with negative connotations. This causes the people that need bankruptcy the most to hesitate on beginning the process. Continuous debt and calls from creditors can be extremely stressful, and the bankruptcy process can alleviate this stress. Here are 7 common bankruptcy myths, busted:
1. Filing for bankruptcy will cause me to lose my property & assets.
Most individuals file for either Chapter 7 or Chapter 13 bankruptcy. Citizens Law Group LTD. can help determine which type is right for you. Chapter 13 bankruptcy allows you to keep your valuables because they are not used for repayment. There are still some assets you retain with Chapter 7 bankruptcy, but the process has to be undertaken properly.
2. Buying things in the future will be very difficult.
Bankruptcy is a fresh start so afterward, individuals will have to re-establish credit. Debts will be cleared and the freedom to buy things will exist. There are plenty of banks that will offer a credit line to those that have filed bankruptcy.
3. I can only file for bankruptcy once.
There are certain durations of time that have to be satisfied in order to file for bankruptcy again. The restrictions depend on the type of bankruptcy filed. Individuals that have filed Chapter 7 bankruptcy have to wait eight years to file again. Those that have filed Chapter 13 must wait two years after they were discharged to undergo the process again.
4. My retirement benefits will be lost if I file bankruptcy.
Some of your assets and properties may be used for repayment depending on how you file for bankruptcy. They will not all be lost and there are some resources that are completely protected from bankruptcy. Pensions and 401(k)s are secured and will not be taken away.
5. I have to be completely desperate to file for bankruptcy.
The economy in recent years has been at one of its lowest points in history. The number of foreclosures that have had to be undertaken has made bankruptcy a common practice. It is a responsible decision initiated to create a debt-free future and give individuals control over their finances.
6. I can clear all my debts when filing for bankruptcy.
Bankruptcy can clear a huge portion of debt. However, there are some payments that it cannot discharge. These include: child support, alimony, student loans and most taxes.
7. It’s hard to file for bankruptcy.
Coming to the decision to file for bankruptcy is harder than the actual process. A bankruptcy attorney knows the process step-by-step and can be helpful in making filing for bankruptcy simple. Citizens Law Group LTD. has experienced attorneys that are eager to help you gain control of your finances. Contact us today to begin a fresh new start!