Hiring an experienced bankruptcy attorney is extremely important when you decide on filing for bankruptcy. There are many myths associated with bankruptcy which claims that it is one of the most difficult legal proceedings, quite scary and a very difficult process to undergo. Hiring an experienced lawyer will help you get rid of all these myths and at the same time guide you very smoothly through the entire process. Experienced attorneys can guide you, calculate your possibilities on filing for bankruptcy, help you to ascertain whether this is really the right step for you and at the same time enlighten you with both the pros and cons of filing for bankruptcy based on your case. Their knowledge and guidance will make the entire journey of filing for bankruptcy a cakewalk for you.
Some of the most common myths associated with bankruptcy:
Myth #1 – People who file for bankruptcy are financially irresponsible
It is irrelevant to say that all those who file for bankruptcy are irresponsible with their expenses, though there may be few who abuse this benefit most are innocent with genuine reasons. There may be circumstances which may have led them in this situation where they are left with no option but to file for bankruptcy like illness, divorce, or maybe the loss of a job. These circumstances could be the reason for the reduction in income or increased expenses making them redundant in meeting their expenses.
Myth #2 – Filing for bankruptcy makes everyone aware of my situation
Filing for bankruptcy does not mean that it will be published in your local newspaper or announced somewhere. Since all legal proceedings are a public record, the documents submitted for bankruptcy will also be considered to be a public record, but not everyone can have access to that data. This data is available to the attorneys who can search for the bankruptcy cases, or if someone who is analyzing your credit report.
Myth #3 – I will lose everything, including my house if I file for bankruptcy
It is completely incorrect to say that you have to give up everything when you file for bankruptcy. Filing for bankruptcy only changes the way you pay back your loans. This completely depends upon the section under which you are filing for bankruptcy. In fact, there are multiple exemptions which can be of your benefit when you file for bankruptcy (depending on your case). These exceptions can help you keep your luxury assets like home, car provided you pay the mortgage amount as pledged and reaffirmed as per the bankruptcy case.
Myth #4 – Paying off my debts or consolidating is better than filing for bankruptcy
Many people fear bankruptcy, and thus believe that it is better to pay back the entire amount or stay in debt than file for bankruptcy. Though paying off is always a better option, the practical side varies on the overall debt that you have accumulated. A professional and experienced attorney will be the best guide to help you I the right direction in this situation.
Myth #5 – Filing for bankruptcy will exempt 100% debt
Depending on your case, the charges and debts are exempted. Though not 100%, mostly all debts are exempted if they are found to be genuine. Few debts like student loan, child support, alimony, IRS are not exempted at any cost.
Myth #6 – You have to file bankruptcy with your spouse if you are married
This definitely does not stand true. It is completely your discretion how you want to file for bankruptcy, individually or with your spouse. Though it would not be advisable to file with your spouse together, rather filing it individually would be a better option.
If you have any other queries or are considering the option of filing for bankruptcy, we highly recommend that you discuss the case once with our experienced attorneys who can guide you better based on your case and scenario. An experienced attorney can only guide you if filing for bankruptcy is the right decision or not in your case. To contact, call – 888-297-6203 or log on to https://www.recoverylawgroup.com/