Bankruptcy Myths – Fact vs. Fiction
When you visit the Law Offices of Richard S. Feinsilver, we work hard to dispel the fictional ideas that creditors allege regarding filing for bankruptcy. Many people, scared by the “myth” of bankruptcy, put up with creditor harassment far too long before seeking a bankruptcy attorney for debt relief.
It is important to seek legal advice when filing a Queens or Long Island New York bankruptcy case. Errors in the preparation of your petition or improper or imprudent advice can have a devastating effect on what you have worked your whole life to create.
It can be hard to discern fact from fiction when making the difficult decision to file a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. Below are a few common misconceptions regarding bankruptcy filings and the fact behind the fiction.
I will lose ALL of my property.
THE FACT: Certain personal property is classified as exempt, meaning that you can keep it, even after receiving a debt discharge in bankruptcy. The property that can be claimed as exempt in bankruptcy varies from state of state.
I will NEVER get credit again.
THE FACT: You WILL get credit again. The bankruptcy laws are designed to provide you with a fresh financial start. Many of our bankruptcy clients that have been granted a discharge in bankruptcy have been able to obtain new credit in as little as 6-12 months.
I will NEVER be able to purchase a home after I file for bankruptcy.
THE FACT: Some lending institutions offer mortgage financing to individuals who have filed for bankruptcy within 3 years after receiving a discharge in bankruptcy. In most cases, you must first re-establish some other form of credit after bankruptcy, and maintain a good payment history.
I will lose my job.
THE FACT: It is a violation of Federal Labor laws for an employer to discriminate against an existing employee because they filed for bankruptcy.
You can only file for bankruptcy once in your lifetime.
THE FACT: You can file for Chapter 7 bankruptcy again as long as it has been at least eight (8) years since you received your last discharge. In addition, even if you have filed for Chapter 7 within the last eight (8) years, you may still be eligible to file for Chapter 13 – Contact our offices for more information.
My bankruptcy will affect my spouse’s credit.
THE FACT: When one spouse files for bankruptcy, as long as none of the debts scheduled by you are joint debts with your spouse, your spouse’s credit is generally not affected.
I can pick and choose those debts that I want to discharge in bankruptcy.
THE FACT: Your are required to list all of your debts in your bankruptcy schedules, even those, such as mortgages, automobile loans and other secured debts that you may still continue to pay voluntarily, on a monthly basis, after bankruptcy. In addition, even if a debt is discharged, you still have the right to voluntarily repay any debt.
I cannot discharge personal income taxes in a Bankruptcy.
THE FACT: Some personal income tax liabilities may be discharged in either a Chapter 7 bankruptcy or Chapter 13 bankruptcy proceeding. The criteria for discharge is complex and should be reviewed by an experienced bankruptcy attorney.
The bankruptcy process is long and difficult.
THE FACT: The typical Chapter 7 bankruptcy case takes approximately 4-5 months from the date that the petition is filed until the date that a discharge is issued by the Bankruptcy Court. The bankruptcy process, while complex and sometimes confusing to the average person, is a relatively straightforward process when you are working with an experienced bankruptcy attorney.
Filing for bankruptcy is the worst thing that I could ever do.
THE FACT: Bankruptcy is NOT EVIL. If you are reading this now, you should be applauded. You are taking a positive step to regain control of your financial situation and plan for the future. You have acknowledged that a problem exists and you are taking action to address it. Life sometimes throws us curves that we never could have imagined. The bankruptcy laws have been designed to help people address their financial difficulties in an honest, straightforward manner. Bankruptcy is not an end but a new beginning…
If you live in New York’s Kings, Queens, Nassau, or Suffolk counties, contact the Law Office of Richard S. Feinsilver. Don’t let a growing mountain of debt keep you from achieving your life’s goals. Taking timely advantage of the U.S. Bankruptcy Laws can help you get your financial life back in order and move on with your life.