If you are thinking about filing for Bankruptcy, you will need professional guidance. That means you will need a lawyer to help you and guide you through the process. Like a lot of complicated subjects, bankruptcy has a reputation based on a lot of misconceptions, half-truths, and outright falsehoods.
First of all, you must realize that no two bankruptcy cases are alike. There are general legal principles involved, but the financial circumstances and details of each individual case is very specific. This is why you need to talk to a qualified bankruptcy attorney in order to assess your situation.
The following are three major misconceptions about bankruptcy:
- All my debts will be wiped out in Chapter 7 bankruptcy: not every type of debt is wiped out or discharged. Certain types of debts cannot be discharged, or erased. They include child support and alimony, student loans, restitution for a criminal act and debts incurred as the result of fraud or malfeasance.
- I will lose all my possessions and money: There are federal bankruptcy exemptions that protect certain kinds of assets (up to a certain value), such as your home, car, retirement accounts, household goods and other items. Most people will proceed through bankruptcy without losing any of their property. If you have a mortgage or a car loan, you can keep those as long as you keep making the payments.
- I will never get credit again: Quite the opposite. It won’t be long before you’re getting offers for credit again. However, these lenders will charge very high interest rates. Thus, it is not a very good idea to get back into trouble again with high interest lenders.
If you are experiencing financial hardship, such as burdensome credit card debt or are facing a foreclosure – don’t wait! It can really cost you. It does not hurt to get a consultation from a qualified bankruptcy lawyer. It can really save you in the long run.
If you find yourself too deep in debt, and cannot possibly pay your bills, I can help. If you are facing a foreclosure, utility shut off, or lawsuit, I can help. Please call my office at (814) 240-1013 or email me at firstname.lastname@example.org with your questions. The first office consultation is free and payment plans are accepted.