The bankruptcy process can be quite complex. For this reason, there are a number of common misconceptions about bankruptcy that should not be perpetuated. The following will take a look at the reality behind some of the most common myths that are shared about the bankruptcy process.
You Will Never Have Good Credit After Filing for Bankruptcy
While a bankruptcy will remain on your credit report for several years from the date of your filing, it is possible to rebuild your credit score after the bankruptcy process has concluded. Many people are able to purchase new homes and motor vehicles after completing the bankruptcy process.
Lenders Will No Longer Work With You
In reality, a large number of lenders understand the challenges inherent in the current economy. These lenders often offer credit to individuals who are have filed for bankruptcy in the past.
Filing for Bankruptcy can Lead to Jail Time
This is simply not true. Millions of people file for either Chapter 7 or Chapter 13 bankruptcy each year. No matter the reason for your bankruptcy filing, it is important to remember that you are not a bad person or a criminal for filing for bankruptcy.
Filing for Bankruptcy is an Extremely Difficult Process
Recent changes have made the bankruptcy process easier than ever before. While numerous documents might be required in the bankruptcy process, it is possible to complete the majority of the work associated with your bankruptcy electronically.
If You are Married, You Must File for Bankruptcy with Your Spouse
In accordance with bankruptcy law, a person who is married is allowed to file for bankruptcy individually or jointly. If a person is married, an individual and his or her spouse will determine if it is necessary to jointly file for bankruptcy.
You can Only File for Bankruptcy Once
You are allowed to file for bankruptcy more than once, depending on when you last filed as well as the type of bankruptcy that was involved. In Chapter 7 bankruptcy, a person can receive a discharge once every eight years, while in Chapter 13 bankruptcy, a person can receive a discharge every two years.
Bankruptcy Ruins Your Credit Score
Bankruptcy will temporarily affect your credit rating, but this will not be permanent. Some people have discovered that their credit scores increased after filing for bankruptcy.
Some Creditors can Still Sue You During Bankruptcy
One of the primary reasons why individuals file for bankruptcy is that the process allows them to stop all collection activities against them. When you file a bankruptcy petition, your property receives automatic protection from creditors.
Speak with an Experienced Bankruptcy Lawyer
If you are interested in pursuing bankruptcy, you should not hesitate to speak with an experienced bankruptcy attorney. Contact the Adam Law Group to schedule your initial free consultation. We have helped numerous people successfully navigate bankruptcy and we know what it takes to make sure that your case resolves in the best possible manner.