For a layman, understanding bankruptcy code can be complicated. There are also a bunch of misconceptions and myths surrounding bankruptcy, which influence decisions that people take. If you are in a bad financial situation and believe that there is no other way that you can repay your debts, meet a bankruptcy attorney. Top law firms in Nevada, such as https://vohwinkellaw.com, have a bunch of attorneys working for them, and they can guide on both your options – Chapter 7 and Chapter 13. In this post, we are sharing more common myths about bankruptcy.
Common Myth 1- I may not qualify for bankruptcy
This depends, like we mentioned, on your circumstances. For instance, if you are unable to repay unsecured loans and debts and are being constantly harassed by your creditors, bankruptcy may work for you. A lawyer will, however, try to find out other ways to manage your financial situation, such as debt consolidation.
Common Myth 2 – I will lose all my assets
Again, not true. Yes, bankruptcy will impact your financial position and show up on your credit report for years to come, but that doesn’t mean losing all your assets. If you have a steady source of income, and a considerable amount in assets, you can consider Chapter 13 bankruptcy, which allows you to repay the debts in a planned manner. The repayment plan will allow three to five years to settle all debts, and your creditors cannot harass you once you have filed for bankruptcy.
Common Myth 3 – I cannot own anything again
Bankruptcy may impact your credit report, but doesn’t impact your ability to earn and make money. If you eventually earn enough and are good with financial management, you can always buy a house, vehicle, and everything else you want.
Common Myth 4 – I can discharge all debts through Chapter 7
No, you cannot discharge all debts through Chapter 7 bankruptcy. Student loans, certain tax debts, and government loans, are some examples of debts that cannot be done away with Chapter 7.
Common Myth 5 – My spouse will lose everything too
That’s not true. There is no reason why your spouse must file for bankruptcy, if they are not in a similar boat. In some cases, couples do file for bankruptcy together, but there is no rule that makes it mandatory.
Check online now to find a bankruptcy attorney in Nevada, and don’t shy away from asking relevant questions related to your options.