Mesa Bankruptcy Lawyer
When you are in financial trouble, there are many ways to eliminate your debts, such as filing for bankruptcy. False information about bankruptcy can prevent a person from taking advantage of this valuable legal remedy, or it can lead people to file for bankruptcy when it is not the best solution for their financial issues. Here is the truth behind some of the more common bankruptcy myths:
Myth: You will be unable to obtain credit in the future.
After your bankruptcy petition has been approved, you can immediately begin rebuilding your credit. Although your interest rates will initially be very high, over time you can lower the rates and improve your credit score.
Myth: A person can only file for bankruptcy once.
If you are filing a Chapter 7 petition, you will be eligible to file for bankruptcy again in 8 years.
Myth: You will still be harassed by creditors.
After your bankruptcy petition has been filed, the court will issue an order preventing creditors from taking any further collection actions. The order will also stop foreclosure, repossession and wage garnishment.
Myth: Taxes cannot be discharged.
Under certain conditions, unpaid taxes from three or more years ago can be discharged in both a Chapter 7 and Chapter 13 bankruptcy.
Myth: You must sell all of your assets in Chapter 7.
Most people find that many of their assets will be exempt from Chapter 7 liquidation. An attorney from our team can help you understand which of your assets you can keep, and should be consulted if you are considering bankruptcy.
Myth: Everyone will know you filed for bankruptcy.
With so many people filing for bankruptcy each month, unless you are a prominent person in the media, your filing will likely go unnoticed. Although the proceedings are public, few people care to pay attention to such filings, especially in light of our country’s economic troubles.
Myth: Filing for bankruptcy will eliminate all debts.
Although certain debts are discharged after your bankruptcy is complete, others will remain. In Chapter 7, after your nonexempt assets are liquidated to repay your creditors, you will be released from responsibility for any remaining balances of eligible debts. Likewise, in Chapter 13 bankruptcy, after you have finished your 3 or 5 year repayment plan, you will be discharged from any eligible debts left over. Before filing for bankruptcy, it is important to determine whether the majority of your debts are eligible for discharge. Some of the most common debts that are ineligible for discharge include student loans, alimony, and child support payments.
Myth: If your spouse files for bankruptcy, you have to file as well.
In many cases, there is significant debt in the name of only one spouse, and there is no reason for the couple to file jointly. Although the law allows a married couple to file together, it is often only necessary for both to file if the debts are generally evenly shared between the spouses or the debt is for jointly-held assets.
Myth: You can spend as much as you want before filing, because you won’t have to pay it back.
Reckless spending before filing a petition should never be done, as the court will like find that you have committed fraud. The court examines your finances and spending habits in the months prior to your filing, and if they determine that your extravagant purchases were made unlawfully, you will be forced to repay the costs.
Myth: Hiring a bankruptcy attorney is pointless; you can file without legal help.
Although a consumer is free to file for bankruptcy on their own, this path is not advised, as it can have a number of negative implications. Bankruptcy is a legal process that involves many complex laws, and without the guidance of a knowledgeable and experienced lawyer, you cannot ensure that your rights and interests are protected. Many debtors do not realize how many debt relief options are available to help them take back control of their finances. A bankruptcy attorney can assess your situation to help you determine your options to pursue freedom from debt and assist you in make the best choice for your family.
Choose Skilled Guidance for Your Pursuit of Debt Relief
The decision to file for bankruptcy should only be made after you have thoroughly explored your options and understand the bankruptcy process. Dodge & Vega, PLC is respected bankruptcy law firm that can answer all of your bankruptcy questions, discuss other debt remedy alternatives and help you make the best decision possible regarding your financial future.
If you are looking for a way to get out of debt, filing for bankruptcy may be your best option. Our firm can give you valuable legal advice and assist you in the process of regaining your financial stability. We have helped many clients achieve a debt-free life and can provide whatever support you need to resolve your financial problems. The firm has many years of bankruptcy experience, and is a member of the National Association of Consumer Bankruptcy Attorneys (NACBA), American Bankruptcy Institute, American Bar Association and Arizona State Bar.