Top Bankruptcy Myths Exposed
Advice from Queens Bankruptcy Attorney Bruce Feinstein, Esq.
“Bankrupt” can sound like an intimidating and dirty word, but there are many myths surrounding bankruptcy that are simply not true. While going through bankruptcy is not an easy process, it can be very helpful for people in debt and can change their lives for the better.
Here are some common bankruptcy misconceptions:
MYTH- I will have bad credit forever if I file for bankruptcy.
Filing for bankruptcy will help eliminate much of your debt and give you the opportunity to get credit in the future. If you have debts, your credit score is already being negatively affected. Once you file for bankruptcy your credit score goes up, and you will then have the opportunity to build up your score even higher.
MYTH- I can only file for bankruptcy once.
MYTH- My home and all my assets will be sold during a Chapter 7 bankruptcy.
There are many exemptions in the bankruptcy code that will protect your assets during a Chapter 7 bankruptcy. These include social security, unemployment, and – depending on how much equity they have – other possessions like your home and your car.
MYTH- I will lose my 401(k) or retirement plan if I file.
Most retirement plans are considered exempt, and are protected if you file for bankruptcy.
MYTH- If I’m married I have to file jointly for bankruptcy with my spouse.
You can file jointly or separately for bankruptcy. Both options have certain benefits that you should consider in order to find out the best way to file.
MYTH- If I make too much money I can’t file for bankruptcy.
If you take a means test and are not eligible or Chapter 7 bankruptcy, you may still be eligible to file for Chapter 11 or Chapter 13 bankruptcy. These forms of reorganization bankruptcy will help modify, lower and/or restructure your debt.
MYTH- I will still get calls from creditors after I file for bankruptcy.
As soon as your bankruptcy is filed with the court, and automatic stay goes into effect that prohibits creditors from contacting you. It also stops repossession, foreclosure, and other forms of debt collection.
MYTH- I can’t get rid of back taxes with bankruptcy.
Certain federal, state and local taxes, along with interest and penalties, can be eliminated under the bankruptcy code.
Dealing with debt can be overwhelming, but knowing the facts about bankruptcy will help you understand how filing for Chapter 7, Chapter 11, or Chapter 13 can help you get your life back on track. Queens bankruptcy lawyer Bruce Feinstein, Esq. can explain the bankruptcy process to you, and help you find the best debt solution based on your situation.
Understanding Bankruptcy – Queens Bankruptcy Attorney
The Law Offices of Bruce Feinstein, Esq. have been helping thousands of clients get out of debt for over 25 years. They offer quality representation and have proven time and again that their knowledge of the bankruptcy code and ability to handle the toughest cases make them the best firm when it comes to debt relief. Bruce Feinstein is an experienced litigator who will work directly with you on your case, making sure you are informed throughout the process. He is committed to helping you live a debt-free life, and will advocate for you, your family, your business, and your livelihood. The firm is a member of the Queens County and Nassau County Bar Associations and can help you if you are considering filing for bankruptcy.