Bankruptcy is not what people make it out to be. Unfortunately, there are many misconceptions and myths that connote bankruptcy as an end-all-be-all situation. Continue reading to learn more about the most common falsities of bankruptcy and reach out to Michael D. Pinsky, P.C. to speak with a skilled New York bankruptcy attorney.
What are the most common falsities about bankruptcy?
- Bankruptcy will ruin your credit forever. This is a common myth that is typically not true. In most cases, you can secure 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 instance, if you qualify to file for either Chapter 7 or Chapter 13 bankruptcy, it will only appear on your credit report for up to ten years.
- Both spouses will have to file for bankruptcy if they are married. While this is commonly believed by many, this is far from the truth. Because you and your spouse are not liable for each other’s debts, both do not need to file for bankruptcy.
- You should pay off all your debts before deciding to file for bankruptcy. In some cases, this is not a possible option for people. If your debts are worth more than half of your annual income and you are unable to pay off those debts within five years, bankruptcy is most likely your best legal option.
- You might go to jail for filing for bankruptcy. This myth is not true at all. There are many laws in place that allow for people to file for bankruptcy. It is important to note 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. Contrary to popular belief, this statement is furthest from the truth. In fact, in many cases, Chapter 7 bankruptcy completely discharges certain debts, allows you to keep your home and also all additional possessions. When it comes to Chapter 13 bankruptcy, on the other hand, you may keep all your assets, however, their value will get added to your repayment plan.
If you are facing any of the above situations or would like to discuss any falsities further, do not hesitate to reach out to our experienced New York bankruptcy firm. Our attorneys are committed to ensuring that our clients have the knowledge and resources necessary to ensure they are able to make informed decisions based on their financial future. Contact us today to discuss the specifics of your case and your options.
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.