Bankruptcy Myths Derailed
Guidance from a Bankruptcy Lawyer in Raleigh
In the field of bankruptcy, there are numerous myths about filing, life
after bankruptcy and the effects on your credit, how the process works,
and more. At Hopper Law Office we are committed to helping clients fully
understand the process and how it will affect them. We are happy to answer
your questions and address your concerns during a consultation but have
also listed several common myths about bankruptcy on this page, for your
Myth: I will lose all my property and assets if I file for bankruptcy.
Truth: When you file under Chapter 13, you will be able to keep your property
and assets, as you are not liquidating these to repay creditors. Under
Chapter 7, although this is the “liquidation” chapter, there
are still particular assets and property that you will be able to keep.
This will vary from state to state and will depend upon your particular
Myth: All debts can be discharged.
Truth: Unfortunately, this is simply not the case. There are certain debts which
cannot be discharged in bankruptcy proceedings, and these often include
child support, alimony, and student loans. Certain taxes cannot be discharged as well.
Myth: Everyone will know that I filed for bankruptcy!
Truth: Unless you are a celebrity or other notable person that the media may
track, it is rare that many people will find out that you have filed –
unless you tell them yourself. The truth is that many, many people file
for bankruptcy throughout North Carolina each and every day. It is highly
unlikely that your bankruptcy will be made public.
Myth: I’ll never be able to rebuild my credit.
Truth: You can rebuild your credit after bankruptcy. In fact, you will probably
begin getting credit card offers not too long after your bankruptcy proceedings
are done (although they will most likely have very high interest rates).
By being smart about your credit and paying off your debt immediately,
you can rebuild your credit and again be in a position where you will
have good credit and can buy a house, a car or other large purchases.
Myth: Only “losers” file for bankruptcy.
Truth: The most honest, hard-working people find themselves in a position where
bankruptcy may be the only answer. Particularly in today’s tough
economy, more and more people are facing foreclosure and the possibility
of bankruptcy. A divorce, job loss or serious illness may be the cause
for financial difficulty as well. Filing for bankruptcy is a responsible
decision because it can give you the fresh start you need.