It can be difficult to find a solution to your serious debt when you have mounting bills and endless collection calls. You can file for bankruptcy relief to get relief from your financial stress. These are the myths surrounding bankruptcy.
I Will Need to Give Up Everything
Many people believe that they will need to give up their homes, cars, and other valuable assets when filing for bankruptcy. However, there are exemptions for Chapter 7 bankruptcy and Chapter 13 bankruptcy that allow filers to keep certain property.
My Credit Will Be Ruined Forever
Yes, bankruptcy will appear on your credit report. This event will be reported for the next 10 years. However, bankruptcy is not always a fatal event for your credit score.
Your Spouse’s Credit Will Be Ruined
A common fear is that filing bankruptcy will mean that your spouse must also file. This is false. Although husbands and wives may file jointly, they are not required to do so. You can keep your spouse’s credit intact by filing bankruptcy.
I Will Never Qualify for a Credit Card Again
Regardless of whether you file for Chapter 7 or 13, creditors may offer you the chance to borrow money after you file. You may even get offers as soon as your case is started. These offers may not be the best rates, or at the most favorable terms.
I Can Only File Once
Some people believe they can only file bankruptcy one time in their life. This is a myth. You can file Chapter 7 or Chapter 13 multiple times. However, there are different waiting periods.
My Creditors Will Still Be Able to Sue Me
The automatic stay is in effect when you file for bankruptcy. The automatic stay applies to all debt recovery actions, except for certain types of actions that are not related to qualifying debts. The stay also prevents unsecured creditors, such as credit card companies, from pursuing you for payment.
Contact Tenina Law Today!
Tenina Law can assist you with your bankruptcy. Call us today for a free consultation to discuss your bankruptcy case.
This article was written by Alla Tenina. Alla is one of the best Bankruptcy Attorney in Sherman Oaks, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.