Bankruptcy Myths And Facts

For persons who are in serious debt, it is common to consider bankruptcy as an option

to help relieve financial pressures People may feel trapped by their debts and may have concerns about filing for bankruptcy. When filing your claim with the bankruptcy court, the judge may not approve the bankruptcy claim or the result may not be exactly as you expect. People often worry about parts of the bankruptcy process due to misinformation or inaccurate details that they have heard from others.

The following are some of the myths about bankruptcy that people may worry about and some of the real facts about them. If you have specific questions about bankruptcy, the Arizona bankruptcy attorneys are there to help you with your claim.

Myth # 1

Filing bankruptcy under Chapter 7, 11 or 13 is quite easy but requires the repayment of debts in one way or another. In reality, bankruptcy cases are often dependent on your ability to repay your debts and what method is the right for you. If you are facing serious financial trouble, bankruptcy may be right for you.

Myth # 2

It is not necessary to sell your home even if you file under Chapter 7, which involves the selling of certain assets to repay your debts. When it comes to Chapter 7 bankruptcy, the majority of claims may fall under protected categories. Persons who file for Chapter 13 bankruptcy may not need to sell anything as their debts will usually be repaid in regular intervals. An experienced Arizona bankruptcy lawyer can help explain the difference between these two forms of bankruptcy.

Myth # 3

Bankruptcy will ruin your credit forever and you will not be able to make major purchases on credit again. In fact, bankruptcy can help you repay your debts and help you correct your damaged credit score. Even though bankruptcy will be noted in your credit history for 10 years, you may still be able to improve your credit history during this period. Thus, in 10 years your credit history may be completely clean. For some individuals, it is better to file for bankruptcy rather than struggle with debt and living with a poor credit score.

by: Emile H

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