Common Bankruptcy Misconceptions

Unfortunately, bankruptcy has earned a less than popular reputation, and people are afraid to file for bankruptcy with the impression that they’ll lose everything if they do. Bankruptcy doesn’t just happen as a result of maxing out credit cards – sometimes circumstances in life, such as medical bills, put people in an overwhelming amount of debt. Instead of a loss, however, bankruptcy should be seen as an opportunity to start fresh! In fact, you may not have to give up your house, your car, or your other personal property. At Richard Banks and Associates, we want to help you understand just how helpful filing for bankruptcy can really be. Here are the most common bankruptcy misconceptions:

  1. You’ll lose your house. This is rarely the case, and if you speak with the experiences lawyers at Richard Banks and Associates, we can help you prevent this from happening. Even if you are extremely behind on your mortgage payments, if you file for Chapter 7 or Chapter 13 bankruptcy, there is a very little chance that your home will be taken away and given to creditors. We can take fast action to protect your property.

  2. Bankruptcy gets rid of all your debt. While filing for bankruptcy has the potential to eliminate the majority of your debts, it may not eliminate them all. Debts such as student loans, taxes, and incidents of fraud are not eligible to be eliminated as a result of bankruptcy. Contact Richard Banks & Associates, and we will assist you in eliminating as much debt as possible to provide you with debt relief.

  3. You will lose your job. Not only is it unethical to fire someone because they file for bankruptcy, but your job is also protected under federal legislation! Just because you file doesn’t mean that you will lose your home, car, and your job! In fact, your employer may be more understanding of your situation if you consult with him or her honestly. Contact the debt relief lawyers at Richard Banks & Associates if you feel like your job is in jeopardy.

  4. Bankruptcy damages your credit forever. Although your credit score may take a hit as a result of filing bankruptcy, it is possible to rebuild it after you file. There are a few simple steps that you can take that will once again raise your credit score to a good level. Things such as only getting one card instead of several, applying for a secured card, and making payments on time can improve your credit score again.

At Richard Banks & Associates, we want you to know the myths behind bankruptcy and why it may be a good option for you to consider. We understand that debt can be overwhelming, and we want to help. Call the debt relief lawyers at Richard Banks & Associates today! Have a great week.