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 (561) 513-5809 to speak directly to our Palm Beach bankruptcy lawyer!
