Many clients have concerns about seeking bankruptcy debt relief, and rightfully so – it is a decision that should not be made without careful consideration. However, there is a lot of misinformation about bankruptcy law.
In fact, there is so much misinformation that many people do not even consider filing in the first place. Not surprisingly, most of these myths are broadcast by the very same debt collectors who want to prevent you from considering bankruptcy – in order to to protect their own interests!
Filing to obtain bankruptcy debt relief is an important decision. You owe it to yourself and your family to base that decision on the facts. The following are some of the most popular myths concerning the benefits of bankruptcy debt relief:
Myth #1: Everyone will find out if I file for bankruptcy.
Not true. Chances are, you probably have friends, co-workers, or even family members who have recently filed for bankruptcy debt relief without anyone finding out. Generally speaking, nobody will find out unless you tell them. Also, there are federal laws in place to protect employees from being fired due to their filing for bankruptcy.
Myth #2: The bankruptcy court will take all of my belongings if I file for bankruptcy.
Not true at all! In fact, the vast majority of Warner & Warner, PLLC clients don’t lose anything when they file for bankruptcy debt relief. Our laws provide for generous exemptions that allow you to keep your home, car(s), and other important personal belongings.
Myth #3: Bankruptcy ruins your credit forever.
The truth is, bankruptcy debt relief will actually improve your credit over the long-term because it eliminates your debts. While it is true that you’ll have to rebuild your credit after bankruptcy, it will be much easier to make a fresh start with a clean financial slate.
Myth #4: You’ll never have a credit card or qualify for a mortgage ever again.
This is one of the most popular, but untrue myths. Most clients get credit card offers within months after filing for bankruptcy debt relief. Also, borrowers may qualify for an FHA loan within one year after filing for bankruptcy debt relief!
Myth #5: Debt collectors can choose “not to accept” your bankruptcy filing.
This is simply a lie. Some creditors will even suggest that bankruptcy debt relief cannot make their debts go away. This, too, is often times untrue. No creditor has the legal authority to stop you from filing for bankruptcy. It is your legal right.
Myth #6: You have to use up your entire life savings before you can file for bankruptcy.
Not only is this false, but it is also the most harmful bankruptcy myth ever told. Bankruptcy law allows you to keep all of your IRA, 401K, and retirement pension or savings. It truly breaks our hearts when we meet honest, hardworking people who have needlessly spent their life savings before visiting us.
The bottom line:
There are many myths that are designed to deter you from even considering bankruptcy as an option. Thus, in order to determine whether bankruptcy debt relief is right for you, it is important that you speak to a knowledgeable New York bankruptcy attorney about all of your debt relief options.
Still have questions about bankruptcy?
Call (518) 451-9388 today for your free consultation to determine whether bankruptcy debt relief is right for you!