Various myths and conceptions are surrounding the bankruptcy. You would learn all about them from your friends or your relatives who have either faced it or heard about it. This has made a lot of debtors reluctant when it comes to filing for bankruptcy. Most do not know about what would happen once they apply for bankruptcy.
And this is where you would be requiring the help of chapter 7 bankruptcy attorney. They would help you when it comes to it and has the proper knowledge as well. Here you would find some misconceptions or myths regarding bankruptcy that should be debunked.
It Leads to Losing Everything:
One major myth that often debtors are more scared of is that they would lose their house, care, all property and their retirement plan too. Some exemptions would be protecting the reasonable properties that you would be having. This would include the house of the debtor, the retirement plan as well as the in many cases the car too. If you fall under the average lifestyle leading category, then these are some things that you would be able to retain.
Everyone is informed about It:
Bankruptcy is a public record and that would be true. But it would never stand for any kind of revelation of any public document. No one would be able to know about the status of the bankruptcy of the particular debtor who has filed for it.
Only people who would be having any kind of knowledge regarding it would be the creditors, the best bankruptcy attorney near me and the people whom the debtor would inform.
The Spouse has to File for Bankruptcy as well:
This is not true for every factor but sometimes for some special cases. In case both the parties are in debt then it could be necessary to file for bankruptcy.
It is Too Expensive:
It is another common myth when it comes to debtors filing for bankruptcy. The fee would amount to less than 10% of their outstanding. Filing with the lawyer would make the whole process a simpler one and make it even more affordable.
They can Never Regain their Credit:
Filing for bankruptcy would help you get rid of the debt that as an individual you are not being able to pay off. As a result, you could gain more credits which would let you pay the rest.
Thus, these are some myths that should be debunked as soon as possible when it comes to bankruptcy and filing for it by the debtor.