Common Bankruptcy Myths

Myths About Filing For Bankruptcy

Myth: You Will Lose Everything If You File for Bankruptcy

Fact: Many people are reluctant to file for bankruptcy because they think that they will lose everything. However, you will likely be able to keep your possessions. If you file for Chapter 7, then your possessions are protected. Chapter 7 cases are non-asset cases. If you file for Chapter 13 bankruptcy, then you can still keep your assets. However, the assets will be factored into the repayment plan.

Myth: Everyone Will Know About Your Bankruptcy

Fact: Bankruptcy will be a part of your public record. However, because so many people file for bankruptcy, it will be hard for someone to get this information. That is why no one will likely know that you filed for bankruptcy unless you are a famous person.

Myth: All Debts Will be Wiped Out

Fact: You will be able to get rid of most of your debt with Chapter 7 or Chapter 13 bankruptcy. However, there are some exceptions to this. Child support and taxes are examples of things that you cannot get rid of with bankruptcy. You probably will not be able to get rid of student loan debt either.

Myth: Your Credit Will be Ruined Forever

Fact: Your credit score will drop after you file for bankruptcy. However, you can start building your credit again after you file for bankruptcy. You can boost your credit score by paying your bills on time. You may be surprised at how quickly you are able to get a credit card.

Contact Ursulova Law Offices

You need the help of a Brighton Beach bankruptcy lawyer if you want to file for bankruptcy. Your attorney can tell you what to expect when filing bankruptcy. This process will go a lot easier if you have an attorney on your side. Your attorney can help gather all of the paperwork that you need to file for bankruptcy.