Let’s face it: filing for bankruptcy is not fun. Regardless of whether or not you are filing for Chapter 7 or Chapter 13 bankruptcy, it is understandably easy to get sidetracked by all the paperwork you have to fill out and all the legal steps you need to take.
Are you overwhelmed with your seemingly endless mounting pile of debt? You are not alone. The Law Office of Stuart M. Nachbar is here to answer any and all questions regarding filing for bankruptcy, as well as guide you throughout the legal process of getting your finances – and life – back on track. Attorney Stuart M. Nachbar has over 20 years’ experience guiding his clients through filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy. Call 973-567-0954 today to schedule an initial consultation with an experienced New Jersey bankruptcy lawyer.
In order to make the bankruptcy process slightly less intimidating, here are three of the top bankruptcy myths explained:
- All your debts will be forgiven.
While filing for Chapter 7 and Chapter 13 bankruptcy will relieve many forms of debt, there are always exceptions to the rule. In general, you cannot discharge debts that you are personally responsible for, including child or family support, debts for fraud you have been found guilty of committing, recent taxes, and student loans. However, the type of debt that you generally can have forgiven includes credit cards, healthcare bills, and personal loans. At the end of the day, your bankruptcy lawyer will be able to explain all the different kinds of debts that are affected.
- You will lose everything.
Many people believe that filing for bankruptcy means giving up their car, home, and any other assets they think is important. This is actually quite the opposite; in fact, many people end up keeping a good amount of their possessions. When it comes to Chapter 7 bankruptcy cases, most of them are no-asset cases, which means that the debtor does not give up any of their possessions. One of the reasons for this is because your bankruptcy attorney in New Jersey can discern between what your basic assets are, otherwise known as exemptions. Regarding any possessions that are not covered under exemptions, more likely than not, most creditors do not want them. With Chapter 13 bankruptcy, you keep all of your assets, while your repayment plan incorporates their value.
- You should pay off your debts instead.
Sure, filing for bankruptcy might be one of the most serious financial decisions you ever make, but that does not mean it is a bad thing. For many people, filing for bankruptcy is the best option. While a bankruptcy lawyer will help advise you on which path to take, bankruptcy is generally your best option if your debts account for over 50% of your annual income, and if there is no foreseeable way to pay them off within the next five years. In fact, you may even improve your financial future by declaring bankruptcy; in 2010, a report from the Federal Reserve Bank of Philadelphia revealed that those who had previously filed for Chapter 7 bankruptcy currently had an average credit score of 538.
Are you interested in further exploring your financial options regarding your debt? Call 973-567-0954 today to schedule a consultation with a New Jersey bankruptcy attorney at the Law Office of Stuart M. Nachbar. To learn more about bankruptcy law, visit USAttorneys.com.