Myths About New York Bankruptcy Law | New Jersey Bankruptcy Law
MYTH ONE: Everyone will know I filed Chaprer 7 or Chapter 13.
Fact: False. Chances are that the only people who will know about a filing are your creditors. While it’s true that bankruptcy is a public legal proceeding, the number of people filing is so massive that very few publications have the space, the manpower or the inclination to run all of them.
MYTH TWO. Most debts are wiped out in Chapter 7 bankruptcy.
Fact: True. Most secured and unsecured debt is “wiped out”. However, certain types of debts cannot be discharged and erased. They include child support, alimony, government-issued or government-guaranteed student loans, and debts incurred as the result of fraud. It’s also very unlikely that a judge will discharge legal settlements you’ve been assessed, such as money you’ve been ordered to pay to someone who sued you.
MYTH THREE I’ll lose everything I have.
Fact: False. This is the misconception that keeps people who really should file for bankruptcy from doing it. Do not be misled by this lie. While the bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods and clothing. In most cases if you have a mortgage or a car loan, you can keep those as long as you keep making the payment. Contact William Z Schneider & Associates and we will get youthe maximum excemptions allowed under the Bankruptcy Code.
MYTH FOUR: I’ll never get credit again.
Fact: False. It won’t be long before you’re getting credit card offers again. Most of our clients receive credit offers within one year from the filing. At Law Offices of William Z Schenider our representation does not end with the discharge of your debt. Instead, we will assist you in regaining your credit and prevent creditor abuse so you and your family can regain your credit. Our knowledgeable attorneys will guide you to rebuild your credit – as an example, if you have a credit card with a zero balance on the day you file for bankruptcy we will advise you to not list it as a creditor since you don’t owe any money on it. That means you might be able to keep that card even after the bankruptcy
MYTH FIVE: If you’re married, both spouses have to file for bankruptcy.
Fact: False. It is common that spouses have a different amount of debt. However, if spouses have debts they want to discharge that they’re both liable for, they should file together. The Law Offies of William Z Schneider & Associates will evaluate your case and provide a detailed analysis and plan to help you maximize your discharge
MYTH SIX: Filing for bankruptcy will completely ruin my credit rating.
Fact: False. It is true that each bankruptcy can remain on a credit report for10 years. However, a judgment can stay on it for 15.
MYTH SEVEN You can’t get rid of back taxes through bankruptcy.
Fact: False You can get rid of the taxes if they are at least three years old. William Z Schneider & Associates will help determine which debts you can discharge. We will composite a detailed analysis of your situation and help you maximize your discharge.
MYTH EIGHT: You can file for bankruptcy only once.
Fact: False You can file for bankruptcy more than once, but the bankruptcy law that went into effect in October 2005 lengthened the required wait between filings. You can file for Chapter 7 bankruptcy only once every eight years. You have to wait two years to repeat a Chapter 13 filing and four years between a Chapter 7 and a Chapter 13 case.
MYTH NINE: Filing for bankruptcy makes me a bad person.
Fact: False. Thousands of good, decent, responsible people file for bankruptcy every year. All it takes is one unexpected incident to throw an otherwise financially secure and responsible person into debt. Family emergencies, unexpected job losses, sudden illnesses, a death in the family, etc can all result in debt. Furthermore, it is much more admirable to take responsibility for your debt through bankruptcy than simply ignoring your creditors and continuing to avoid making payments towards your debt.
MYTH TEN: A debt counselor can help me eliminate my debts so I can avoid bankruptcy.
Fact: False. It’s extremely important to understand that debt counselors cannot help you eliminate your debt, and they cannot legally prevent your creditors from abusing and harassing you. The only way to eliminate your debt and prevent creditor abuse is to file for bankruptcy, and the most effective way to file for bankruptcy is to retain the services of an experienced bankruptcy lawyer. The only thing a debt counselor can do is help you manage your existing debt and negotiate new terms for your debt with your creditors. Under no circumstances can they erase or eliminate your debt
Don’t let myths deter you from debt-free financial success. Contact the Law Offices of William Z Schneider & Associates today at 1-800-555-5555
