Are you reeling under financial distress? Do you have more debts than can you practically repay? You could consider bankruptcy as a powerful tool for debt relief. While bankruptcy is the last resort for most people, it can also offer a perfect new slate to start afresh. Although not mandatory, you should consider talking to a bankruptcy attorney in Hagerstown, MD, to understand Chapter 7 with regard to your circumstances. In this post, we are debunking common myths about Chapter 7 bankruptcy.
Bankruptcy will discharge all debts
Chapter 7 bankruptcy can help erase only some of your debts. Yes, you can get rid of most of your unsecured debts, but some remain, such as your student loans and payments related to child support and alimony. You can discharge debts like credit card bills, unpaid utility bills, and other unsecured loans like payday and personal loans.
You have to meet a judge and face humiliation
Most people who file for Chapter 7 bankruptcy don’t have to go before a judge. It depends on the facts of the case, but this is not mandatory at all. Bankruptcy is often seen as a social stigma, but in the real world, it is just a tool to rearrange your financial situation. Yes, you will have a meeting of creditors, but this wouldn’t be something humiliating. There is no reason to worry about these aspects.
Your credit is destroyed forever
That is not true at all. Yes, Chapter 7 bankruptcy will appear on your credit report for up to a decade, but this doesn’t mean you cannot work on your credit score again. You get a fresh start to build your financial status, and while that can take time, there are ways to simplify the process.
You will lose your house
While there are exceptions, you should be able to retain your house and car as long as you can repay the loans as per schedule. If you have been current on the payments and can afford to do so even after filing for bankruptcy, you don’t have reasons to lose the house. Talk to an attorney to know more.
Chapter 7 bankruptcy is not a complicated process and can be completed within a few months. That said, there is considerable paperwork involved, which is precisely why you need an chapter 7 bankruptcy attorney indianapolis in. A lawyer can advise you on your current situation and the pros and cons of Chapter 7 bankruptcy keeping other aspects in consideration.
