Few Myths about Filing Bankruptcy
Many people feel that they cannot file bankruptcy as they may lose their jobs and many more. There are many myths in the mind of many people who are always worried of filing the bankruptcy. But this view is not at all true. The exact opposite of it is true. You don’t lose anything when you file a bankruptcy; in fact you will have a chance to restart your new financial life after the filed case is discharged by the court.
But there are many lawyers say that these are just myths and are not really facts. Bankruptcy will in fact save from your present financial worries. It will relieve you from all tensions and help you to lead a more peaceful life from all the creditors’ calls. These lawyers have solved many bankruptcy cases with ease and they say it is always good to file a bankruptcy when you are in dilemma of how to clear the debts to the creditors. They will be with you at every step of filing bankruptcy till the case is closed. Lets us what the Long Island bankruptcy lawyers say about these Myths:
Myth 1: Worried about losing everything they own.
You are asked to submit the complete records of whatever you own just to help you to keep some exemption properties for yourself. It will not seize your complete property. The court and the creditors can seize certain properties like the pension on which they don’t have any right. So it is always advised to file bankruptcy if are really unable to pay the debts.
Myth 2: Disqualified to take another credit card.
This is not a fact. The people whose bankruptcy is cleared will immediately start receiving calls and emails for taking new credit cards. You will not be charged heavy interest. But the credit limit is sometimes really low. But if you maintain a low payback and the payments are done on time then your credit score can be increased and the credit limits will be increased soon and you also get more new offers from the credit card providers.
Myth 3: People having a job are not qualified.
This is not at all true. People having job also can file bankruptcy. But there are certain things you cannot do. If your income is really good then you cannot file chapter 7 bankruptcies but your filed chapter 7 bankruptcy will be converted to chapter 13 bankruptcies where you get manageable ways to pay the debts. You will not be forgiven for the payment of the debts to the creditors.
Myth 4: You need to pay complete amount in chapter 13 bankruptcy.
This is not a fact. When you file for chapter 13 bankruptcy, you don’t actually have to pay the entire amount. You will have different payment plans in chapter 13 bankruptcy. Your payment depends on whether your debts are secured loans or unsecured loans. It also depends on the total amount of debts that you have to pay back.
You can see a good financial life after the bankruptcy is discharged. It helps you to improve your credit to a great extent. The Long island bankruptcy lawyers will help you to know more about this process and they will guide you through the entire process. They will explain you everything just before the case starts and they will always be ready to solve all your queries at any point of time. They will also guide you to how to improve your credit score after the bankruptcy and rebuilding a beautiful life after the discharge of the bankruptcy.
Category: Law
