DEBUNKING COMMON MYTHS ABOUT BANKRUPTCY
Few individuals know much about the bankruptcy process and how it works before they are faced with filing for Chapter 7 or Chapter 13bankruptcy. As a result, rumors fly about what bankruptcy is and how it can affect a person’s life. Many of the things that you may have heard about bankruptcy may in fact be myths. If you are under more debt than you can repay and are facing bankruptcy, don’t despair. Fisher Legal Group can debunk any myths that you may have heard about bankruptcy and can help you see it for what it was meant to be – a way out of excessive debt.
MYTH: Bankruptcy is a bad thing.
Nothing could be further from the truth. Bankruptcy was specifically created as a way out for individuals and businesses that have gone through hard times and cannot repay their debts. Bankruptcy is actually a good thing since, without it, there would be no means of getting out from under debts that you can never afford to repay.
MYTH: Only irresponsible people need to file for bankruptcy.
All kinds of people may find themselves needing to file for bankruptcy. While it is sometimes true that a person was irresponsible with their finances and is now overwhelmed by debt, not everyone who files for bankruptcy has had this experience. Many individuals who file for bankruptcy are swamped by medical bills because of an unexpected injury or illness, and even more are simply victims of the struggling economy.
MYTH: Anyone can file for bankruptcy.
Bankruptcy is not something that anyone can file for at any time. Before a person files for bankruptcy, he or she (or the business) must take the means test to prove that they have insufficient income and assets to repay their debt. If you do not pass the means test, you must seek an alternative to bankruptcy in order to resolve your debts.
MYTH: Bankruptcy will ruin your credit score.
By the time anyone needs to file for bankruptcy, their credit score is too low for any additional damage to make a real difference. Filing for bankruptcy does appear on your credit report for up to 10 years, but it also eliminates your debts so that you can begin rebuilding your credit during that time. By the time bankruptcy no longer appears on your credit report, your credit score may be higher than ever before!
MYTH: You will lose everything you own when you file for bankruptcy.
For individuals and businesses that file for Chapter 7 bankruptcy, certain nonexempt property will be lost to liquidation, but you will not lose everything. Certain property may be exempt, such as your home and car. A bankruptcy lawyer can review your case and help you determine what property you may and may not lose if you file for Chapter 7 bankruptcy. Individuals who file for Chapter 13 bankruptcy, as well as businesses who file under Chapter 11, will not lose anything since they are reorganizing their debt and are not subject to liquidation.
STILL HAVE QUESTIONS? CONSULT AN ORLANDO BANKRUPTCY LAWYER!
The myths above are only a few of many. Before you disregard bankruptcy as an option, speak with an Orlando bankruptcy attorney from Fisher Legal Group. Our legal team can help you understand the truths about bankruptcy as a way out of debt. We can also help you consider any alternative options, such as debt settlement, in case bankruptcy is not right for you. We offer a free case evaluation for each new client, so contact our firm today!
Get your questions answered - Call for a free consultation or assessment of your needs (407) 792-6970.