Understand the Facts of Bankruptcy
There is a great deal of misinformation regarding bankruptcy. While some
of these "bankruptcy myths" may be exaggerations or statements
that seem to fall short of the truth, far too many are just flat out wrong.
When you are exploring your debt relief options and whether or not you
should file for bankruptcy, it is of the utmost importance that you have
the factual information you need to be successful. At Avery Law, our Idaho
bankruptcy attorneys make client-education one of our top priorities, as supplying
you with valuable and credible information can make all the difference
in the outcome of your case and in your life after bankruptcy. Our legal
team has debunked some of the most common bankruptcy myths we receive
Bankruptcy is only for financially irresponsible people.
This is simply not true. While everyone's situation is unique, our
firm has met and worked with countless individuals and families who have
suffered financial setbacks as the result of unforeseen and unfortunate
circumstances, including injuries and illnesses and job loss. In the wake
of America's economic decline, more and more people from all walks
of life have found bankruptcy the most beneficial way to gain control
of their finances and debt.
Filing bankruptcy solves all financial problems.
This is a common and maliciously misleading myth. Anyone considering bankruptcy
should realize that it is not a cure-all and that it will not solve all
of your financial problems. While not an ultimate or automatic solution,
bankruptcy can be an incredibly powerful tool and a benefit for many individuals
who have recognized their inability to pay their debts.
By providing a financial fresh start, bankruptcy provides consumers with
new avenues of opportunity that they can pursue without the burden of
preexisting debt. Debt-free futures are not guaranteed, however, and are
only earned as a result of committing to responsible financial habits
If you're filing bankruptcy, you can charge as much as you want.
This is a myth devastating proportions that no one should believe or act
upon. While bankruptcy does allow consumers to discharge certain unsecured
debts, such as credit card debt, you should never charge frivolously or
max our your credit cards prior to your bankruptcy. Doing so can not only
impact your eligibility to file bankruptcy, but can also be considered
fraud and grounds for criminal prosecution.
You will lose everything when you file for bankruptcy.
This myth may stem from an antiquated conception of bankruptcy and what
it means to be bankrupt. The fact is that bankruptcy is not a condition
of total loss, total insolvency or a total lack of money and property.
U.S. bankruptcy law has been crafted and changed throughout the years,
and has come to provide consumers with much needed debt relief. In many
cases, consumers are legally permitted to keep and protect a great deal
of their property, including exempt property in
Chapter 7 cases and nearly all property and assets in
Chapter 13 cases.
Bankruptcy ruins your credit permanently.
This myth is absolutely false. While bankruptcy will impact your credit,
it is far from ruinous and is in no way permanent. Generally, a
Chapter 7 bankruptcy will remain on your credit report for 10 years and
Chapter 13 for 7 years. Many consumers also find that credit is given at the discretion of lenders
and that they are not exempt from obtaining credit or loans after their
bankruptcy. Rebuilding your credit is also an essential part of life after
bankruptcy. By practicing responsible financial habits, you can easily
reestablish your credit and maintain a score much higher than what you
previously had before bankruptcy.
Get the Information You Need
Our Idaho bankruptcy attorneys are prepared to answer all of your questions
and concerns and to walk you through every aspect of the bankruptcy process.
By obtaining the factual information you need from a reliable and qualified
source, you can be better equipped to not only take on the bankruptcy
process, but to also establish and maintain financial stability in the
future. If you would like to begin learning about bankruptcy, how it applies
to your current situation, and what our firm can do to help,
contact Avery Law to schedule a free consultation with a knowledgeable and attentive member
of our legal team.