A lot of people do not fully understand the benefits of bankruptcy. The bankruptcy laws are designed to allow people to get relief from oppressive debt and regain control of their financial situation. The following should help clear up some common misconceptions.
1. When the bankruptcy laws were changed the ability to file bankruptcy was eliminated.
FALSE. Bankruptcy is still a viable option. Even though the bankruptcy laws were changed, most people can still get a fresh start under Chapter 7 by eliminating unsecured debts such as credit cards, personal loans, payday loans and medical bills. If Chapter 7 is not an option for you, Chapter 13 will allow you to greatly reduce your debts in most cases, by adjusting your payments based on your budget and other financial factors.
2. My creditors will take over everything if I file bankruptcy.
FALSE. In fact, filing bankruptcy helps even the playing field with your creditors. When you file your case collection activity by your creditors stops. This includes harassing phone calls, garnishments, repossessions and foreclosures. In addition, Chapter 7 allows you to wipe out most unsecured debts. Chapter 13 allows you to reduce your debts by making orderly payments under a repayment plan that is designed to fit your financial circumstances.
3. Filing for bankruptcy will cause me to lose all of my property.
FALSE. Most people who file bankruptcy are able to keep most or all of their property. Depending on your circumstances, you can eliminate or greatly reduce your debt while protecting assets from your creditors.
4. I will never be able to get credit again.
FALSE. Filing bankruptcy can actually help rebuild credit. In less than 2 years from receiving your discharge of your debts, your credit rating can improve.
5. Bankruptcy is complicated and costly.
FALSE. The attorneys at Harbour Law, PLC will guide you through the process step by step. We charge a flat fee in most cases. Once we file your case we can stop collection activity and give you peace of mind.
To get started call (757) 622-1621 for a free consultation. The attorneys at Harbour Law, PLC. represents clients in all cities in Hampton Roads.