Two Common Myths About Filing Bankruptcy

Posted by on Nov 17, 2017 in Blog | 0 comments

Two Common Myths About Filing Bankruptcy

Almost everyone, at one time in their life, has lost control of their finances and became uncertain about the future. What do you do, with approaching medical bills, credit card bills, and notices of past due bills stacking up? Attempting to handle debt on your own is difficult and oftentimes uncertain. Creditors are constantly calling, your credit score is collapsing fast, and there does not appear to be any escape. The only option in this situation may be to file bankruptcy.

A lot of factual information is available out there concerning bankruptcy; however, many myths and misconceptions exist as well. If you are considering filing bankruptcy, consult with a knowledgeable attorney to determine the right option for your situation. To get a better understanding of filing bankruptcy and how it impacts you, take some time to learn about two common myths surrounding bankruptcy.

Chapter 7 Bankruptcy Can Only Be Filed Once
Many people have the impression that you can only file bankruptcy once in a lifetime. This is untrue. There are no limitations in a number of times a person can file bankruptcy. Chapter 7 bankruptcy, where an individual’s assets are liquidated, can be filed every eight years. Addition rules apply if filing under Chapter 13.

Unpaid Debt Results in Jail Time
This myth is especially frightening. This scare tactic is used by some debt collectors. However, unpaid debt does not result in jail time. Actual possibilities you may face for unpaid debt may include garnishment of wages, being taken to court, or a lien put on your property until which time the debt is resolved. Only if a crime has been committed can jail time be warranted, such as for fraud, hiding property, or refusal to pay taxes.

Depending on your specific circumstances, bankruptcy may be the right option for you. For more information, contact us today for a consultation.

Leave a Reply

Your email address will not be published. Required fields are marked *