There are a plethora of myths surrounding bankruptcy, and in some cases, people are deterred from considering bankruptcy because of these myths. Read on and reach out to our firm today to learn more and retain the services of an experienced Newburgh bankruptcy lawyer. We are on your side.
Bankruptcy myths debunked:
- Both spouses will need to file for bankruptcy if they are married. This is a typical idea that many individuals have, however, this is not the case. This is because you and your spouse are not responsible for each other’s debts, and as a result, both partners do not need to file for bankruptcy.
- You should pay off all your debts before choosing to file for bankruptcy. This is not a feasible option for all cases. If your debts are worth more than half of your annual income and you are unable to pay off those debts within five years, you should think about bankruptcy as your most appropriate legal alternative.
- Bankruptcy will ruin your credit permanently. This is a common belief that is typically not true. In most circumstances, you can reserve a new line of credit soon after filing for bankruptcy. Also, bankruptcy can be removed from your record after a certain number of years. For instance, if you are eligible to file for either Chapter 7 or Chapter 13 bankruptcy, it will only show up on your credit report for up to ten years.
- You might go to jail for filing for bankruptcy. This is a total fallacy. There are a number of laws in place that permit people to file for bankruptcy. It is important to realize that thousands of people file for Chapter 13 or Chapter 7 bankruptcy each year.
- You will lose everything you own if you file for bankruptcy. This statement could not be further from reality. In fact, Chapter 7 bankruptcy entirely removes certain debts and permits you to keep your home and also all additional possessions. When it comes to Chapter 13 bankruptcy, on the contrary, you may keep all your assets, however, their value will be added to your repayment plan.
It is in your best interest to reach out to our firm today to learn more about the common misconceptions about filing for bankruptcy. Our legal team is qualified with the knowledge and experience required to ensure that you have the help you need each step of the way. Our firm understands that this may be a stressful time in your and your family’s life. Luckily, you are not alone. Do not wait to give us a call today to retain the services of a skilled and dedicated Newburgh bankruptcy lawyer.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.