As bankruptcy attorneys, our clients often come to us with a number of preconceived notions about bankruptcy. They’ve heard what others have to say about bankruptcy, some things being true and some false. So, we are here to help clear up the misinformation about bankruptcy that’s floating around out there.
One of the most common concerns that people have before they file for bankruptcy is that they are going to lose their home and/or their car. While this does happen sometimes, filing for bankruptcy does not mean that you have to forfeit all of your belongings. Chapter 13 bankruptcy can help you to catch up on your payments that you don’t have to go through foreclosure. Chapter 7 bankruptcy is a great option if you are already up to date on your payments as you can continue to make your payments as usual with this type of bankruptcy.
Another myth that we hear often is that bankruptcy will ruin your credit forever. This is simply not the case. Bankruptcy stays on your credit report for 7-10 years, and even within that span of time, you can still get credit and apply for loans at certain banks.
Another common myth is that once you file for bankruptcy all of your debt disappears. This is definitely not true. While filing for bankruptcy can help to pay back debt that you can’t pay on your own, there are certain bills that you are still obligated to pay. For example, if you want to keep your home or your car, you must continue to make payments for those on time. Also, if you pay child support, you are still responsible for those payments even after you file for bankruptcy, and any back payments that may have accumulated will remain in place until you pay them back.
Bankruptcy does not have to be filled with uncertainty. The bankruptcy attorneys at Craft Law Offices in Greenville, NC are here to answer any questions you may have about the bankruptcy process. Call us today for a free consultation.