Bankruptcy is a legal process in which an individual may discharge most of their personal debts through the process of liquidation or a repayment plan. However, there are also many myths that surround bankruptcy you should be aware of. These myths are not true, and you need to learn more about them in order to stop them from dissuading you to file bankruptcy and allow yourself a fresh financial start.
Consulting your San Diego bankruptcy lawyer can help you determine if filing for bankruptcy is in your best interest. Also, an experienced lawyer will be able to explain all of the unsubstantiated bankruptcy myths. But, first take a look at the information below to learn about some common myths surrounding bankruptcy.
What are the 3 common Chapter 7 myths?
While there are many myths that surround different types of bankruptcy, there are more unfounded “facts” about Chapter 7 than any other type of bankruptcy, probably because this is the most common bankruptcy individuals file. Take a look at the following three biggest myths surrounding Chapter 7, and why they are not true.
Myth 1: Bankruptcy should be avoided at all costs
One of the biggest bankruptcy myths is that filing for either Chapter 7 or Chapter 13 bankruptcy is the worst financial decision you can make. When entered into under the legal guidance of an experienced bankruptcy attorney, filing for bankruptcy can help provide debtors with a fresh financial start, eliminating various personal debts and even halting the foreclosure process.
Myth 2: Bankruptcy will ruin your credit
Many people think that they will never be able to reestablish credit following bankruptcy. Fortunately, you can begin reestablishing credit immediately after you receive the official notice that your debts have been discharged. Consider starting with a secured credit card, unsecured card, secured or unsecured loan, or even a gas card.
Strange as it seems, many people who file for bankruptcy receive offers of new credit before their bankruptcy is over. Just remember that while you may be able to obtain these new lines of credit, you will want to be careful not to incur more debt than you can easily manage.
Try to pay in full each month instead of carrying a balance. You will be surprised at how quickly you can rebuild your credit.
Myth 3: Married couples must file together
You can file together or separately, that is your choice. In many cases it makes sense for husband and wife to file together, but in some instances one spouse might not want to file. This is absolutely fine and definitely allowed by the court.
Here’s a valuable tip: if you are getting divorced and both of you need to file for Bankruptcy, you and your spouse can usually save a substantial amount of money in Attorney and filing fees by filing for Bankruptcy together before your divorce is final.
Consult your dependable bankruptcy lawyers in San Diego
Whether you are interested in filing for Chapter 7 or Chapter 13 bankruptcy, or exploring your other debt negotiation options, you need adequate legal assistance to make the most out of your bankruptcy claim. That is why you should look for the most reputable bankruptcy lawyers in all of San Diego.
Law Offices of Mark L. Miller are here to help. We are your go-to bankruptcy experts and we will do everything in our power to ensure your bankruptcy claim is successful. Give our San Diego firm a call at (619) 574-0551 to set up a consultation, or come to our offices near Heritage Park. We’re here to help make your bankruptcy case easy and efficient.