Many people are deterred from filing for bankruptcy merely because of the negative stigma that surrounds it. Our firm is here to tell you, that filing for bankruptcy could be the best decision you will ever make. Read on and reach out to our legal team today to learn more about these bankruptcy myths. Our Newburgh bankruptcy lawyer is on your side.
What are the most common bankruptcy myths?
- You should pay off all your debts before deciding to file for bankruptcy. This is not a viable option for all matters. 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 suitable legal option.
- Both spouses will need to file for bankruptcy if they are married. This is a specific idea that many individuals have, however, this is not the truth. 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.
- Bankruptcy will destroy your credit forever. This is a typical belief that is generally not true. In most cases, you can reserve a new line of credit soon after filing for bankruptcy. Furthermore, bankruptcy can be removed from your record after a certain number of years. For example, 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 misconception. There are many different laws in place that allow people to file for bankruptcy. It is important to recognize 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 the truth. Chapter 7 bankruptcy completely removes certain debts and permits you to keep your home and also all other possessions. When it comes to Chapter 13 bankruptcy, on the other hand, you may keep all your assets, however, their value will be added to your repayment plan.
Do not wait 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 background 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 hire the services of a skilled and committed Newburgh bankruptcy attorney.
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.