Bankruptcy Myths
BANKRUPTCY MYTHS
Myth I: Bankruptcy is difficult.
While there are many rules in bankruptcy and the process may seem confusing, it is not so difficult that you should forgo the benefits bankruptcy can afford you. If you have competent lawyers representing you, the process should be straightforward in most situations. Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.
Myth II: If I file, I will never get credit again.
It is possible to rebuild your credit within months of filing bankruptcy. In many cases, clients report having an easier time obtaining credit after the bankruptcy freed them from so much debt.
Myth III: If I file, I will lose my house, car, pension, IRA, or 401(k).
Because of several exemptions built into the bankruptcy law, most people who file for bankruptcy protection do not lose any property at all. In Florida, these assets are generally exempt.
Myth IV: My debts are uncollectible because I am unemployed.
In Florida, your creditor can sue you for five years and collect against you for another twenty years after that. An individual who is thirty years old will have to deal with the creditors until he or she is fifty-five years old. That is a long time. You have alternatives. Consider what filing Chapter 7 bankruptcy would do for you.
Myth V: If I file, I will lose my job or not get a new job.
In most cases, employers will not find out about the bankruptcy unless you choose to tell them or if you authorize them to run a background search. Either way, employers are not allowed to fire or refuse to hire someone (or take other adverse action) for filing bankruptcy.
Myth VI: My bankruptcy will hurt my spouse's credit.
When one spouse files for bankruptcy protection, his or her spouse’s credit is not affected unless you file jointly.
Myth VII: Bankruptcy will not help me because I owe taxes.
While it is true that some taxes will not be discharged, others can be. There are many rules that we will explain to you.
Myth VIII: Bankruptcy can free me from my student loans.
In some instances you can include student loans and taxes in a Chapter 13 repayment plan and pay them off over time. In many cases, this will save debtors money. Also, in rare instances, these debts may be dischargeable.
Myth IX: Bankruptcy reform made it almost impossible to qualify for bankruptcy.
Many people believe that the new bankruptcy laws make it difficult or impossible to pass the 'means test' required to qualify for bankruptcy. This is simply not the case.
Myth X: I can't afford bankruptcy.
Hiring a lawyer to file for bankruptcy does have a price. Deciding to do so should be based on a calm and rational evaluation of your finances and the potential benefits that legal representation can bring you. You can count on Fort Lauderdale Bankruptcy Attorney, Carmen G. Soto to give you the real answers and real information you need to make an informed decision. I won't try to convince you to hire me unless it is in your best interests, and your initial informative consultation will be free.
Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.
Myth I: Bankruptcy is difficult.
While there are many rules in bankruptcy and the process may seem confusing, it is not so difficult that you should forgo the benefits bankruptcy can afford you. If you have competent lawyers representing you, the process should be straightforward in most situations. Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.
Myth II: If I file, I will never get credit again.
It is possible to rebuild your credit within months of filing bankruptcy. In many cases, clients report having an easier time obtaining credit after the bankruptcy freed them from so much debt.
Myth III: If I file, I will lose my house, car, pension, IRA, or 401(k).
Because of several exemptions built into the bankruptcy law, most people who file for bankruptcy protection do not lose any property at all. In Florida, these assets are generally exempt.
Myth IV: My debts are uncollectible because I am unemployed.
In Florida, your creditor can sue you for five years and collect against you for another twenty years after that. An individual who is thirty years old will have to deal with the creditors until he or she is fifty-five years old. That is a long time. You have alternatives. Consider what filing Chapter 7 bankruptcy would do for you.
Myth V: If I file, I will lose my job or not get a new job.
In most cases, employers will not find out about the bankruptcy unless you choose to tell them or if you authorize them to run a background search. Either way, employers are not allowed to fire or refuse to hire someone (or take other adverse action) for filing bankruptcy.
Myth VI: My bankruptcy will hurt my spouse's credit.
When one spouse files for bankruptcy protection, his or her spouse’s credit is not affected unless you file jointly.
Myth VII: Bankruptcy will not help me because I owe taxes.
While it is true that some taxes will not be discharged, others can be. There are many rules that we will explain to you.
Myth VIII: Bankruptcy can free me from my student loans.
In some instances you can include student loans and taxes in a Chapter 13 repayment plan and pay them off over time. In many cases, this will save debtors money. Also, in rare instances, these debts may be dischargeable.
Myth IX: Bankruptcy reform made it almost impossible to qualify for bankruptcy.
Many people believe that the new bankruptcy laws make it difficult or impossible to pass the 'means test' required to qualify for bankruptcy. This is simply not the case.
Myth X: I can't afford bankruptcy.
Hiring a lawyer to file for bankruptcy does have a price. Deciding to do so should be based on a calm and rational evaluation of your finances and the potential benefits that legal representation can bring you. You can count on Fort Lauderdale Bankruptcy Attorney, Carmen G. Soto to give you the real answers and real information you need to make an informed decision. I won't try to convince you to hire me unless it is in your best interests, and your initial informative consultation will be free.
Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.