When you file for bankruptcy, it can be hard to know where to start. It’s important to educate yourself on the subject, but you also need to sort the truth from the fiction. Here are some top bankruptcy myths, debunked.
Myth: You cannot file bankruptcy if you have a job.
Reality: Chapter 13, the most frequented type of bankruptcy, requires a person to pass a means test to qualify. This means test is meant to assure the court that the filer has enough money to cover the costs of closing fees, and make sure those with an income larger than the state’s average is unable to file.
Myth: If I file for bankruptcy, I cannot get credit for at least 10 years.
Reality: While bankruptcy can negatively affect your credit for up to 10 years, you’ll still have credit available. You will even be able to borrow money during the case if needed.
Myth: I will lose everything I own if I file for bankruptcy.
Reality: This is only true in very rare cases. A whopping 95% of all cases are filed as “no asset” cases, which means the filer is able to keeps all their possessions.
Myth: Everyone I know will know I have filed for bankruptcy.
Reality: Even though bankruptcy records are made public, there are many people filing at one time. So the chances that your name will be recognized are slim.
Myth: Bankruptcy lawyers are a waste of money.
Reality: Bankruptcy proceedings can be a headache for anyone that’s not properly trained with law documents, court appearances, and handling creditors. It is best to invest in a bankruptcy lawyer that is familiar with a case similar to yours, and you will most likely successfully file without a problem. In fact, the success rate for Chapter 7 bankruptcy claims is 95% with a lawyer.
Filing for bankruptcy does not have to be stressful. Call the Law Offices of Craig L Cook today!
Se Habla Español! 479-783-8000