While many people have created falsities regarding bankruptcy, it is important to recognize which are myths and which are true. Continue reading to learn more and reach out to our dedicated Newburgh bankruptcy lawyer today to learn more.
The most common myths about bankruptcy in New York:
- You should pay off all your debts before choosing to file for bankruptcy. This is not a viable option for all circumstances. If your debts are worth more than half of your annual income and you are incapable of paying 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 common view by many, however, this is not the case. This is because you and your spouse are not liable for each other’s debts, thus, both partners do not need to file for bankruptcy.
- Bankruptcy will ruin your credit permanently. This is a common belief that is typically not true. In most cases, you can book 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 a number of laws in place that permit people to file for bankruptcy. It is important to recognize that thousands of people file for Chapter 13 or Chapter 7 bankruptcy every year.
- You will lose everything you own if you file for bankruptcy. This statement could not be further from the truth. In actuality, Chapter 7 bankruptcy completely discharges certain debts and permits you to keep your home and also all further 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 hesitate to reach out to our firm today to learn more about the common misconceptions about filing for bankruptcy. Our legal team is prepared with the knowledge and experience needed to ensure that you have the help you need each step of the way. Our firm realizes that this may be a stressful time in your and your family’s life. Fortunately, you are not alone. Reach out to us today to retain the services of a competent and committed 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.