Bankruptcy is Often the Best Option for Those in Serious Debt – No Matter What These Bankruptcy Myths Might Indicate

Bankruptcy is Often the Best Option for Those in Serious Debt – No Matter What These Bankruptcy Myths Might Indicate

If you are having trouble keeping up with your mounting debts, you should definitely make it a priority to investigate all of the different ways in which you may get your finances back on track. This also applies to filing for bankruptcy.

Misinformation about what bankruptcy is and what it accomplishes leads people to be resistant to the idea of filing for bankruptcy far too frequently. Contacting a bankruptcy professional is the most reliable approach to obtain information about the alternatives available to you regarding filing for bankruptcy. You can reach Law Offices of Terrence Fantauzzi at (909) 552-1238 for help today. In the meantime we may begin by refuting the top 10 bankruptcy myths.

Myth: Filing for bankruptcy will completely destroy your credit

If your bills have gotten to the point that you are contemplating filing for bankruptcy, the likelihood is that your credit is already in a poor state. Filing for bankruptcy may provide you with a solid basis for repairing your damaged credit much more quickly than you might expect.

Myth: People with poor morals file for bankruptcy

It is not immoral to take use of a legal option that will give you with debt relief even though having the intention to repay all of your debts in a faithful manner is a good thing to strive for.

Myth: Before you file your taxes, you need to be sure that your car loan is paid off

In point of fact, you will most likely be able to keep your vehicle even in the midst of the bankruptcy process, and the fact that it has a bank lien on it will prevent the trustee from seizing it.

Myth: You should start by spending down all of your savings for retirement

In the event that they are held in the appropriate types of retirement accounts, retirement funds are excluded from being affected by bankruptcy. You definitely do not want to wipe out these accounts in preparation for filing for bankruptcy.

Myth: Before you file your bankruptcy, you need to make full payments on certain bills

Sometimes individuals have borrowed money from family members or friends, and they want to make sure that the money is repaid in full before the bankruptcy proceeding is finalized. If you don’t pay off these types of debts at least a year in advance, the trustee in charge of your bankruptcy case has the right to retrieve the money from the creditors and divide it anyway he or she sees suitable.

Myth: If you want to conceal assets, you might put them in the name of another person

To reiterate, the bankruptcy trustee has the authority to confiscate the assets if they discover that you have engaged in such conduct. In addition, if you have lied to the court about your assets, they may be able to argue that this constitutes grounds for denying you a discharge from your debts.

Myth: Filing for bankruptcy won’t stop debt collectors from coming after you

In point of fact, engaging the services of a bankruptcy attorney will immediately result in your debt collectors being directed to make contact with the attorney rather than with you. In addition, a significant portion of the unsecured debts that collectors are concerned about will most likely be discharged in the event that you file for bankruptcy.

Myth: You are required to wait a period of seven years between filings

In point of fact, the amount of time you are required to wait between filings is contingent upon a number of criteria; nonetheless, this period of time should never exceed seven years.

Myth: Consolidating debts is a preferable option to declaring bankruptcy

In many instances, consolidating debt does not truly lessen the burden of existing debt to the extent that would be beneficial to the consumer. The fact that many debts are totally canceled during the bankruptcy procedure makes it a superior and more expedient method of debt relief.

Myth: Declaring bankruptcy should only be done as a final resort

Don’t wait until you’ve spent all of your money before thinking about filing for bankruptcy. If you notice that you are in difficulty as soon as possible and file for bankruptcy, you will put yourself in a much better position over the long term.

When you are ready to file for bankruptcy or learn about your bankruptcy options, it is time to request a free legal consultation. You can do that by calling Law Offices of Terrence Fantauzzi at (909) 552-1238.

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