Common Bankruptcy Myths
Anyone who is in debt and considering bankruptcy has a lot of valid issues to be concerned about. For example, there is a chance that the judge will not approve the bankruptcy claim, or that the final outcome will not be ideal. Unfortunately, many people add to their anxiety by worrying about certain ideas that are simply not true.
The Harmon Law Office's Arizona bankruptcy attorneys present the following list of common misconceptions about bankruptcy, along with the truth behind each one. If you have any questions, please call us at 480-829-0494.
Myth #1: Bankruptcy is "taking the easy way out."
Filing for bankruptcy under Chapter 7, 11, or 13 all involve repaying your debts one way or another, depending on which way is best for you. If you are truly struggling with more debt than you can manage, filing for bankruptcy may actually the best way for you to repay your creditors. Even your discharged debts will not severely impact those creditors; after all, the bankruptcies filed every year have not stopped credit card companies from turning healthy profits.
Myth #2: Bankruptcy means losing your house.
Even if you file under Chapter 7, which involves selling assets to repay debts, you will not necessary need to sell your home. In fact, the majority of Chapter 7 bankruptcy filers discover that all of their assets fall into protected categories and are immune from sale. If you file under Chapter 13, you may not need to sell anything, since you will be repaying your debts in regular amounts over time. An experienced Arizona bankruptcy attorney can help you protect your most important assets.
Myth #3: Bankruptcy will ruin your credit for good.
Actually, by allowing you to repay your debts, bankruptcy can help you fix your damaged credit score. It is true that a bankruptcy will be noted in your credit history for 10 years; however, there are many ways to improve your credit even during this time. In addition, at the end of 10 years, your credit history can be completely clean. Giving yourself a fresh start via bankruptcy is often much better than allowing your credit score to slowly deteriorate as you struggle with debt.
Contact Us
A good lawyer can help you end the stress of constant creditor harassment for good. To speak with a knowledgeable Arizona bankruptcy attorney, contact the Harmon Law Office at 480-829-0494.