Debunking Bankruptcy Myths
Bankruptcy is a legal remedy to help a person get out of debt and start
fresh. Sometimes people that qualify for bankruptcy don't take advantage
of this useful solution because they have erroneous information about
the bankruptcy process. Some of the more common bankruptcy myths include:
Myth #1: You will lose all of your assets and personal property.
Various exemptions exists for persons filing
Chapter 7 bankruptcy that will protect various types of assets and property, including
wages, pensions, benefits, furniture, clothing, vehicles, and household items.
Myth #2: Unpaid taxes cannot be included in a bankruptcy.
Statutes allow a person to discharge tax obligations that are more than
three years old as long as certain qualifications are adhered to.
Myth #3: You will be unable to obtain credit after filing for bankruptcy.
In most cases, a person's credit report is already in bad shape by
the time they
file for bankruptcy. Once your bankruptcy petition has been approved, you can start
rebuilding your credit by paying any remaining financial commitments on time and acquiring a
secured credit card.
Myth #4: You will still be harassed by creditors after you file bankruptcy.
When your bankruptcy petition is filed with the court, an automatic stay
will be issued that will
stop calls from creditors and debt collection agencies. It can also prevent:
Myth #5: Chapter 13 bankruptcy requires creditors to be paid in full.
Payment plans established under a
Chapter 13 bankruptcy range from full repayment to no payment at all. What you pay
and to whom will depend on your disposable income. A San Diego bankruptcy
lawyer can review your finances and give you reliable advice regarding
Chapter 13 and creditor payments.
San Diego Bankruptcy Attorney: Reliable Legal Counsel
San Diego Legal Pros is a competent bankruptcy law firm that has successfully
assisted many clients with their debt problems. We will conduct a thorough
analysis of your financial situation and discuss all of your
debt relief options. Our firm is skilled in debt resolution, and will give you the capable
help you need to get out of financial trouble.
Contact a San Diego bankruptcy lawyer
from our firm to find out your
debt relief options and how to improve your financial situation. Call