The Top 4 Bankruptcy Myths & Facts
Bankruptcy Myths in Phoenix
Phoenix Bankruptcy Attorney
In order to clear up some of the common misconceptions that are made about filing bankruptcy, here are some of the various myths that may be stopping you from seeking Chapter 7 or Chapter 13 bankruptcy as a debt relief solution for yourself:
Myth #1: People who file bankruptcy lose everything they own.
This is a valid concern, but the truth is that there are bankruptcy exemptions that allow you to keep your home and car (up to a certain value) and much of your personal property. Filing Chapter 7 bankruptcy can result in the liquidation of some assets in order to satisfy creditors, but typically includes things like art, jewelry or other items of higher value. In Chapter 13 bankruptcies, generally there is more asset protection and less chance of losing valuable, non exempt property.
Myth #2: Since I can only file bankruptcy once, I need to make sure that now is the right time.
Bankruptcy can be filed every 6 – 8 years, if needed, depending on the specific chapter of bankruptcy.
Myth #3: My friends, family and employer will all find out about me filing for bankruptcy.
While bankruptcy is a public process that will appear on your credit history, the only parties that will have express knowledge of this taking place are your Phoenix bankruptcy lawyer, the court and your creditors. Unless you tell others about filing or the conduct a credit check, it is relatively easy to keep it private. Bankruptcy information can be obtained through a court website online, but users have to create an account to login and have access to this information.
Myth #4: My credit will be ruined forever and I’ll never be approved for a house, car or credit card if I file bankruptcy.
Once your bankruptcy case is complete, your debts will either be discharged by filing Chapter 7 or satisfied by filing Chapter 13. This will typically allow individuals to not only start rebuilding their credit, but also to be capable of handling more credit.
Need a lawyer for your bankruptcy in Phoenix? Contact a Phoenix bankruptcy attorney to get detailed information about how bankruptcy can help you.
In Chapter 13 bankruptcies, generally there is more asset protection and less chance of losing valuable, non exempt property.