Having to file bankruptcy may seem like the end of the world. You may feel stress because you may be about to lose your home, you have overwhelming credit card debt or medical debt and you don’t know where to turn. Over the years, bankruptcy has become one of the most powerful ways for individuals and businesses to get out of debt and start over. Bankruptcy is a tool that helps many people grasp their finances and start over.
With the right bankruptcy attorney to guide you through the process, you can file a Staten Island Bankruptcy in the state of New York and get a fresh financial start. Below, we will take a look at some of the most common myths.
Myth#1: I Will Never Get Credit Again After Filing Bankruptcy
If you are contemplating bankruptcy, it is likely that you already have a low credit score. If you fail to address your mounting debt it can lead to judgments, wage garnishments and bank levies. The U.S. Supreme court enacted bankruptcy as a tool to help individuals and businesse’s get a fresh start. If individuals who filed bankrupruptcy could never get credit cards again, it would go against the very reason why these laws were enacted. Most people who file bankruptcy are able to get credit cards immediately after filing. Making on-time future payments can help bring up your credit score so that you can successfully regain a higher credit score.
Myth #2: Bankruptcy Will Stay on My Credit Score Forever
This is false. A Chapter 7 bankruptcy will remain on your credit score for ten years while a Chapter 13 bankruptcy will remain on your credit report for 7 years. This may seem like a long time, however, this doesn’t mean you need to wait that long to get credit again. You can get credit cards again right after you file. Further, the longer out the bankruptcy is the less impact having a bankruptcy will be on a credit score. You can generally, have perfect credit within two years as long as you continue to make timely payments.
Myth #3: I Won’t be able to Finance a Car or Home After Filing Bankruptcy
This is patently false. Though your credit score will show a bankruptcy on your credit report it doesn’t mean you won’t be able to obtain credit again. You may need to wait two years before financing a home however, many people are able to finance a car within a few months of filing bankruptcy. Keep in mind, your interest rates may be higher at first. However, if you are contemplating bankruptcy it is likely that no lender will even extend a loan to you at this point.
Myth #4: I Can’t Keep Any Property if I File Bankruptcy
This is also untrue. Many individuals can file Chapter 13 bankruptcy and keep all of their property. Other individuals who file Chapter 7 bankruptcy may also keep their property as well. Bankruptcy exemptions were enacted to allow indiviudals to file bankruptcy and keep most of their property. With proper planning, a bankruptcy attorney can help guide you so that you can keep your property and use the bankruptcy process to get out of debt.
Myth #5: I Can Only Use Bankruptcy to Wipe Out My Credit Card Debt
This is largely false. Bankruptcy can also wipe out certain other types of debts aside from credit card bills. Some of these debts that bankruptcy can wipe out are medical bills, personal loans, and vehicle reposessions. If you are uncertain about whether the type of debt you have can be wiped out, then you should speak with a bankruptcy lawyer to help you.
Myth #6: I Can Only File for Bankruptcy One Time
Hopefully, you will only have to file bankruptcy one time. However, some times life happens and people find themselves in the same predicament. Individuals who file Chapter 7 bankruptcy, must wait 8 years before filing another bankruptcy. Individuals who have filed Chapter 13 bankruptcy, must wait 4 years to file another Chapter 13. If you have previously filed for Chapter 13 and want to file a Chapter 7 bankruptcy, you will need to wait six years to do so.
Myth #7: Filing For Bankruptcy Means I am a Failure
This is far from true. Sometimes, life throws curveballs at people. If you have found yourself in overwhelmind debt and need to file bankruptcy, it means that you are taking the right steps to tackle your financial situation and start over. Thousands of people file bankruptcy everyday. You should not be ashamed to use tools that are available to you to help you get out of debt and regain control of your finances.
Myth #8: I Shouldn’t Hire a Bankruptcy Attorney To Help Me
Although, you may be able to represent yourself in a bankruptcy, it isn’t recommended. A Bankruptcy attorney can help prepare you for your hearing in court, make sure all documents are sent to the trustee, and relieve much of the stress that comes with filing. Ensuring that you qualify for bankruptcy is extremely important. Unfortunately, not everyone qualifies for bankruptcy. If you file bankruptcy and don’t qualify, you may end up in a very bad situation.
Karra L. Kingston Esq. can help ensure you qualify for bankruptcy and evaluate your financial situation to determine what your next steps should be. Karra L. Kingston Esq. will work directly with you and hold your hand throughout the entire process. Retaining our services will take off the stress of filing bankruptcy alone and will put you at ease knowing you have a passionate attorney to help you. 