Helping You Understand the Truth About Bankruptcy
Unfortunately, there are many people who truly need to file for bankruptcy but don’t because of their misconceptions about the bankruptcy process. There are many bankruptcy myths that misinform people, robbing them of the chance to take advantage of true financial recovery.
While some falsely label bankruptcy as irresponsible or financially damaging, the truth of the matter is that bankruptcy is an effective legal remedy that can help you eliminate most or all of your unresolved debt, therefore providing you with a clean slate.
As an experienced Tampa bankruptcy lawyer, I can provide you with the accurate information necessary to debunk the myths you may have heard. Do not allow misconceptions to steer you away from bankruptcy. Some of the most common bankruptcy myths include:
Filing for bankruptcy will ruin my finances and my credit.
The sole purpose of bankruptcy is to provide individuals with financial relief, not to create a greater amount of stress and financial hardship. Whether you choose to restructure your payment plans (under Chapter 13) or liquidate your assets in order to pay off your creditors (under Chapter 7), bankruptcy is designed to help you obtain the fresh financial start that you desire.
Bankruptcy will permanently destroy my credit rating.
It is true that bankruptcy will remain on your credit report for a maximum of 10 years. However, assuming that you continue to manage your credit, the fact that you filed for bankruptcy will gradually become less important to creditors as time passes. Ultimately, filing for bankruptcy will eventually improve your credit rating. Essentially, if you file and manage your credit carefully, your credit score should be higher after bankruptcy than before you chose to file.
When an individual is struggling to pay bills or is facing foreclosure, this is when his or her credit rating is most negatively impacted. Choosing to file for bankruptcy will end the downward spiral of your credit, stop creditors from listing you with creditor reporting agencies, and allow you to begin rebuilding your credit. Many people who file for bankruptcy begin to see a large improvement in their credit scores within 15 months of filing.
When I file for bankruptcy, all of my debts will be discharged.
The portion of your debt that you can get discharged will depend on the type of debt you have. While debtors can typically get most of all of their unsecured debts eliminated, there are other forms of debt that cannot be discharged through bankruptcy. A few common examples include:
- Child support & alimony
- Government-funded student loans
- Restitution to a personal injury victim
- Debt accrued by criminal actions
- Debts that were accumulated fraudulently
- Local, state or federal taxes
If I file for bankruptcy, I will lose all of my personal property and assets.
This common misconception keeps many individuals from filing for bankruptcy even when this is the type of financial solution they truly need. It is simply not true that after bankruptcy you will have to start from scratch, building from the ground up. Fortunately, there are many bankruptcy exemptions that have been created to protect your assets during the liquidation process.
It is of the utmost importance that you enlist the assistance of a tenacious attorney who will tirelessly work to protect your home, car, retirement funds, household goods, clothing, and other personal properties to the greatest extent possible. In many of my cases, the client ends up losing nothing in the process. To learn more about the property and assets that I can protect on your behalf throughout the process of bankruptcy, make sure to contact my firm.
Because I am married, my spouse will be required to file as well.
Your spouse is not required to file bankruptcy just because you file. You will only be required to file jointly if the debt accumulated is shared and both you and your spouse are legally responsible. If the debt is only in one spouse’s name, then that spouse can file alone.
Filing for bankruptcy is wrong and for deadbeats.
Under Title 11 of the United States Code, bankruptcy is established as a legal means for individuals to recover from extreme financial hardship. The debt relief solution was designed to help individuals across the country turn their lives around and start fresh.
The vast majority of individuals who file for bankruptcy do so as a result of job losses, unexpected decreases in income, illness, or divorce. Many individuals actually use bankruptcy (particularly Chapter 13 bankruptcy) to pay back their debts under more affordable payment plans. By filing for bankruptcy, you are actually addressing your financial problems and putting a stop to an endless cycle of uncontrollable debt.
If I file for bankruptcy, everyone will know about it.
Although bankruptcy files are public records, very specific searches must be performed in order for this information to be discovered. Individuals must be motivated, and willing to pay the PACER fees associated with the appropriate records search. Your family, friends, and neighbors will not be notified of your decision by the bankruptcy court.
The only individuals who will be informed of your bankruptcy are your creditors, the IRS, and the bankruptcy court.
After I file for bankruptcy, my debt collectors will continue to harass me.
It is a violation of federal law for a debt collector or creditor to continue to contact a debtor after the bankruptcy process has begun. The moment you file, a court injunction called an automatic stay will be placed into effect. This prevents the debtor from trying to collect payment until the bankruptcy period is over. If you are contacted after you have filed, provide your lender with your case number and inform your Tampa bankruptcy attorney. An automatic stay will also put a stop to any repossessions, foreclosure actions, wage garnishment, and similar actions.
Tampa Bankruptcy Attorney Offering Effective Legal Counsel
Don’t let bankruptcy myths prevent you from experiencing financial freedom! Make sure that you are properly informed about the bankruptcy process by speaking with a skilled legal professional who can provide you with straightforward answers.
With my extensive experience handling bankruptcy cases, you can rest assured that I will provide you with the effective and efficient solutions that you need for a financial turnaround. Dion R. Hancock P.A. has successfully assisted a wide variety of clients with their debt problems.