Are you considering filing for bankruptcy but hesitant because you have heard you will still lose your house or have to pay certain debts? At The Buchalter Law Group, we are committed to helping clients navigate the bankruptcy process. We know that financial troubles can be overwhelming, which is why we want to make sure you know what to expect when you file for bankruptcy. Keep reading to find out if what you’ve been told about bankruptcy is just another myth.
Myth #1: All My Debts Have to Be Repaid
You aren’t required to pay back all of your debts when you file for chapter 13. How much debt you have to pay will depend on your disposable income and the total value of your assets after exemptions.
Myth #2: I Will Lose My House
The opposite is true. By filing for chapter 13, you can actually save your home from foreclosure. As long as you keep up with the mortgage payment and the chapter 13 repayment plan, your house will be secure. You might even be able to eliminate a second mortgage in chapter 13 under a “strip off” procedure.
Myth #3: My Credit Will Be Destroyed Worse Than a Chapter 7 Bankruptcy
Regardless of which filing option you choose, bankruptcy will stay on your credit report for 7 to 10 years.
Myth #4: I Can’t Afford to File Chapter 13
Most people usually pay higher legal fees when they file chapter 13 instead of chapter 7. Although, some attorneys will allow the bankruptcy trustee to pay a portion of your legal fees over the 3-5 year repayment plan.
Myth #5: I Won’t Be Able to Sell My House
Many people assume you can’t sell your home when you file for bankruptcy. However, you can still sell your house if the money from the sale is used to pay your debts in the chapter 13 plan.
Our Bankruptcy Lawyer Can Answer Your Questions Today
At The Buchalter Law Group, we are here to walk you through each step of the bankruptcy process to make sure your best interests are fully protected. We understand that bankruptcy can be confusing, which is why we will gladly assist you each step of the way.
To set up a free case evaluation with a member of our law firm, call (321) 320-6088 today!