What Are Some Bankruptcy Myths

Bankruptcy is something that is still not clear to many people in any way. For that, a San Diego bankruptcy lawyer is the best person for you to contact and file bankruptcy properly.

What is bankruptcy?

Whenever people are not able to pay back any money against there outstanding debts than the only way they can get out of there debt situation is through filling bankruptcy for them. There are many types of bankruptcy available and you have to decide which one is perfect for you, choosing the right bankruptcy is important as every bankruptcy has there own benefits. Thus consults a good San Diego bankruptcy lawyer and then goes ahead for filing bankruptcy.

Common myths about bankruptcy

Some most common bankruptcy myths which people have are as following:

Your credit will be killed permanently

This is a lie as in no situation your credit will be killed permanently in any manner. Yes, it will be affected for a few years depending on the bankruptcy you choose, but it will not be permanent in any way. Mostly its will be 10 years for chapter 7 and for chapter 13 it’s less than 10. Thus choose your bankruptcy accordingly with proper research about everything. Consult a bankruptcy attorney near you for the same.

Bankruptcy can discharge all of your debt

Anyone who tells you this probably doesn’t know anything about bankruptcy then, this is a very common myth which people have. When you file bankruptcy then depending on what bankruptcy you choose you to get to pay your creditors, whether it will be through the selling off your assets or having a payment plan for a specific year. But there are many debts that cannot be just paid and vanish through bankruptcy.

Child support and spousal support are some debts which no once can remove under no conditions. Similarly, as a result of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, student loan debt is also not dissolved in any case.

Do married couples have to file bankruptcy together?

If you are your spouse both are sharing liability and you both wanted to file bankruptcy to share liability, then this is something not very uncommon. But if one of you has more liability than others then it is advisable to file bankruptcy individually.

But if the debt is shred hen both should file bankruptcy as one. If both spouses are liable for the debt and only one spouse files, then creditors can demand payment in full from the spouse that didn’t file. Contact a San Diego bankruptcy lawyer today to consult about this if you have more confusion.

Most people who file bankruptcy are lavish spenders

That’s not true it can be true in some cases but according to some research mostly the reasons were divorce, severe illness, and job loss due to which people were filling for bankruptcy for them. The legal fee property loss and other expenses they used to face in all these cases were mostly the reason for getting bankrupt.

You will lose everything

You are not gonna lose everything if you will file bankruptcy, in fact, you will only lose your assets when you will file for a chapter 7 bankruptcy for yourself. If you choose chapter 13 then you got to pay the bank through a payment plan. But in chapter 7 also there is an exempt list that stops from selling all the court to sell all assets.

Also, there are many items that are not exempt but your creditor doesn’t want that like TV, Ac, etc. Many assets either have little intrinsic value or are overly encumbered with debt. Get yourself a bankruptcy lawyer San Diego for saving more assets.

BLC Law Center is a professional law firm that enables you to get the best lawyers to handle your bankruptcy in the best way possible for you. Contact us today and get yourself the best bankruptcy attorney San Diego today.