Common Bankruptcy Myths
Our Palm Beach Attorney Helps You Find the Truth
There are many stigmas that can easily be associated with
filing for bankruptcy, as well as many misconceptions about how it will affect a person's
future. The best way to learn all there is to know about
Chapter 7 and
Chapter 13 bankruptcy, and what the pros and cons are, is to discuss your financial
situation with our knowledgeable and experienced bankruptcy attorney in
Palm Beach. At the Law Offices of Carol D. Ellis, we are here to help
you see through the myths and get the truth about what debt-relief options
are available in your case.
Myth: If I file bankruptcy, everyone will know.
Truth: While bankruptcy is a public process, it is not likely that anyone will
access this information. In most cases, the only way people find out about
your filing is by running a credit check on you. The creditors that are
involved with the bankruptcy will be notified, but unless you tell others,
it can be a private legal matter between you and your lawyer.
Myth: I will lose everything I own if I file for bankruptcy.
Truth: It is true that Chapter 7 bankruptcy can include the liquidation of some
assets to satisfy creditors, but this does not mean that you will lose
everything. There are certain items that can be considered bankruptcy
exemption, including your home. Chapter 13 is a reorganization of debts
and allows you repay them over a certain period of time. Those who file
this type of bankruptcy generally do not have to liquidate any of their
assets. Overall, bankruptcy is meant to give you a fresh start, not strip
you of all your assets.
Myth: I will never be able to get a line of credit again if I file bankruptcy.
Truth: Bankruptcy was designed to help individuals and spouses regain their financial
solvency, not to penalize them forever. In some cases, the best and most
responsible thing a person can do is go through the
bankruptcy process and then get educated on how to try and avoid similar situations in the
future. When the bankruptcy process is done, you will have the ability
to build your credit over time.
Myth: What if I need to file bankruptcy in the future? Can I file again?
Truth: You can file Chapter 7 every eight years and Chapter 13 even sooner, if
necessary. Depending on the initial chapter of bankruptcy you file under
and the future one you seek to file under, the time restrictions may vary.
Our firm can help you with the preparation and filing of your bankruptcy
and provide you with guidance to help you through the process.
If you have any further questions about bankruptcy myths, call
directly to our Palm Beach bankruptcy lawyer!