Busted! Don’t Believe These Bankruptcy Myths!
Believe it or not, contrary to popular belief, filing for bankruptcy is not as bad as it is made to look. While it may be an unpleasant situation, there are still a multitude of options available to overcome even the worst scenario. By seeking the services of a bankruptcy law office, you will gain access to a variety of possible solutions.
Unfortunately, there has been a perpetuation of bankruptcy-related myths and misconceptions that have plagued the thought processes of people. This misconstrued thinking has led them to believe that they have limited to no options to resolve their situation.
As experts in the field, the Bankruptcy Law Office of Matthew D Boruta wants to help you steer clear of these misconceptions and false facts. We have done this, by debunking three of the most widely believed myths about bankruptcy.
Myth 1: It is impossible for me to obtain credit in the future.
In most cases, a person’s credit score actually increases as a result of increasing one’s debt to income ratio. Bankruptcy does not reset your credit score to zero, and the damage from the filling is generally more than offset by the increase brought about by the elimination of debt. Bankruptcy is a fresh start which allows one to start rebuilding credit and removing the credit score cap imposed by the amount of debt one has.
Myth 2: Filing for Bankruptcy forces me to lose all my possessions.
Each state allows an individual to keep a certain amount of possessions. For example, it is not bankruptcy but the state of Indiana which determines what one can keep. However, it’s worth noting that if someone is sued in state court, one’s creditors can take one’s possessions. To avoid a situation of losing all your possessions, seeking counsel from a qualified attorney who can advise on what one is allowed to keep is essential. If someone is over the limits, then the possessions can be kept in Chapter 13 of bankruptcy.
Myth 3: A Non-Attorney or an untrained person can manage the bankruptcy filing process.
A common misconception is that as it is irrelevant whom someone chooses to use to manage the bankruptcy filing process, it is cheaper to use a preparer or non-attorney. This is untrue as the non-attorney can only supply forms and not guidance on how to fill out the forms. Moreover, the non-attorney will not attend the mandatory meetings after bankruptcy has been filed.
The dirty secret of bankruptcy is that an independent contractor is hired by the court to manage a bankruptcy case. That independent contractor has a financial interest in selling assets or submitting an improperly prepared budget showing excess net monthly income.
A bankruptcy attorney possesses the legal skills to help you with the paperwork and guide the client through the process. Bankruptcy attorneys provide peace of mind to clients because clients are dealing with experts who provide individual attention, advice and counsel clients every step of the way and ensure that the interests of the clients are always protected.
If you’re looking to steer clear of these myths, gain the benefit of expert advice and avoid pitfalls while you navigate the bankruptcy filing process reach out to the Bankruptcy Law Office of Matthew D Boruta.
As the most trusted bankruptcy law office in Indianapolis, IN, our attorneys believe in making things simple for our clients, putting the client’s interests first and helping individuals and business owners overcome their issues. Our attorneys are focused on helping clients without judgment and making a positive difference in their lives.