Seven Common Chapter
7 Bankruptcy Myths
King
and King Bankruptcy Attorneys posted on
Tuesday, July 19, 2012
Chapter 7
bankruptcy allows people to discharge their debt. The process is called
asset liquidation because the assets of the individuals can be sold to pay back
creditors. However, numerous protections remain in place to prevent the loss of
all assets, especially those necessary to enable the individual to start a
financially successful future. Although most individuals qualify for this, some
do not take advantage of it because of the numerous myths about the process.
Those who are facing financially difficult times, regardless of why that is may
wish to contact an attorney to discuss their options.
Here are a few common
Myths.
In Chapter 7 bankruptcy, individuals request the court to
grant them a discharge, which means they no longer have to pay back the funds
included within the filing. When you go bankrupt, there are consequences. Yet
for most, this is the best way to start a strong financial future. Don’t
believe these common myths.
1. You will lose your
home. Under state and federal law, some assets have protection, depending
on the value. For those with a high amount of equity in their home, it is
possible the trustee will force the sale, but this is rare in most cases and
finding a good attorney will help.
2. Chapter 7, chapter 11, or chapter 13 will work for me.
Not true, speaking to a qualified professional can help you figure out what
type of bankruptcy you need to file.
3. All types of debt qualify. That is not the case because
federal income tax debt, student loans, and child support and alimony are
non-dischargeable. These will remain after you file.
4. It ruins your credit forever. Not true, you can rebuild
your credit over time. Additionally, those who are unable to meet their
financial obligations right now may be better off filing in the long-term,
especially if they cannot pay off their debt within the next three to five
years.
5. Everyone will know. Again, it is a public record, but
what is different here is that unless you tell people about it or they follow
court records closely, they will not know.
6. You will lose your family collectibles. Most states have
specific allowances for various types of assets to protect them. As long as the
value remains under the state-appointed threshold, you should be protected.
7. It takes too long. Most cases process within two to three
months. You could be debt free by that time.
Chapter 7 bankruptcy is an opportunity to finally get the
financial help you need. Do not put off the opportunity that this could provide
for you. Instead, take steps to move towards this process by speaking to an
attorney about your situation.
When it comes to filing for Chapter 7 bankruptcy Atlanta
residents know that they need an experienced attorney on their side to get the
best results. Visit the following for more information about your options: http://kingandkingattorneys.com .
