Brevard County Bankruptcy Attorneys
Dispelling Myths & Misinformation About Bankruptcy
Many people believe that
bankruptcy is an option that can only come about through extreme negligence and irresponsibility
with your financial assets. This is just one of many myths regarding bankruptcy
that we can hopefully help clear up. At
Buchalter Law Group, we work hard to help our clients get a fresh start and set themselves
on the path to financial freedom.
Get help from our skilled team today by calling 321.320.6088 for a
free case evaluation!
Common Bankruptcy Myths
Bankruptcy is the Result of Irresponsibility
Bankruptcy laws were created in the first place to allow
good people who had gotten in over their heads to restore their life and financial
freedom. In many cases, insurmountable debt arises purely bad luck or
a catastrophic event, such as a serious injury, major accident, or financial
collapse. This can cause people to fall behind on their mortgage payments
or credit cards, resulting in them needing to find a way out.
Bankruptcy Ruins Credit
While a bankruptcy does appear on your credit score for a considerable
amount of time (7 years), odds are your credit score is already pretty
low and filing for bankruptcy really doesn’t add much damage. In
fact, in rare cases, filling for bankruptcy can start improving your credit
almost immediately. Not to mention bankruptcy helps alleviate debt by
giving you the opportunity to start over with a blank slate.
You Cannot Get a Loan after Filing for Bankruptcy
Most individuals can take out a home loan as early as two years after
filing. In fact, if you start saving for a down payment on a home right
after declaring bankruptcy, you may be able to get a loan by the time
you have reached your down payment goal!
Bankruptcy Discharges All Debts
Unfortunately, this isn’t usually possible. Student loans are not
usually forgivable by bankruptcy except in special circumstances. You
may also be able to pursue tax relief through bankruptcy, but it is not
usually absolved in this way. However, by freeing yourself from other
debts, your tax or student debt may be easier to manage after bankruptcy
by having additional money freed up.
Anyone can File for Bankruptcy
You must meet the eligibility requirements before you can declare bankruptcy.
In order to file for Chapter 7, you must be able to pass the means test.
For Chapter 13, you need to have a certain amount of disposable income
in order to reorganize your debt. If you do not qualify, however, there
are bankruptcy alternatives, such as debt counseling or loan modifications
that may be able to assist you.
Have questions about filing for bankruptcy?
Contact Buchalter Law Group today!