Are the Chapter 7 Bankruptcy Myths True?
These days, there are a lot of myths about Chapter 7 bankruptcy and its benefits. If you’re experiencing truly overwhelming debt, Chapter 7 bankruptcy may be your best path to the financial relief you deserve. Still, you may be hesitant to start looking down the path of Chapter 7 bankruptcy, perhaps you’ve heard stories about its effects. Well, at DiTocco Law Group, PLLC, we know there are numerous benefits to filing for Chapter 7 bankruptcy. We’ve witnessed the benefits of Chapter 7 bankruptcy in the cases we have assisted with over the years. Chapter 7 bankruptcy can bring many financial and personal benefits, but if you focus on the negative myths, you’ll stay trapped in your debt. Our attorneys would like to dispel some common Chapter 7 bankruptcy myths:
Myth: Bankruptcy is a lengthy process
False: Many people assume that Chapter 7 bankruptcy is a lengthy process of many legal battles. This isn’t the case, especially when you work with a bankruptcy lawyer in Fort Lauderdale from our team at DiTocco Law Group, PLLC. In fact, we can help see that your debts are discharged within as little as three months.
Myth: All assets are eligible for exposure
False: It is true that during Chapter 7 bankruptcy, there are some assets which are exposed to potential disruption. But, in many cases almost all assets are retained. Your house, car and retirement are often not permitted to exposure, meaning you can retain these assets while liquidating your unsecured debts.
Myth: Chapter 7 bankruptcy removes all credit card debts
Truth: Chapter 7 bankruptcy is known as a liquidation bankruptcy, it liquidates unsecured debts such as credit card debts. This can give you the financial fresh start you need to start with a clean slate.
Myth: Nobody qualifies for Chapter 7 bankruptcy
False: It is true that to declare Chapter 7 bankruptcy, you must pass a means test. This isn’t a pop quiz like in grade school, but rather a system to determine your financial eligibility. Essentially, you must prove that your debts are beyond your financial ability. One of our knowledgeable attorneys can help you determine your Chapter 7 eligibility.
Myth: Bankruptcy stays on your credit forever
False: Many people are afraid to regain the financial control they deserve because they fear that bankruptcy will ruin their credit. While bankruptcy does show on your credit report for ten years, the growing utilization of bankruptcy nationwide is removing many stigmas associated with this completely legal avenue of debt relief. In fact, some people even receive credit card offers in the mail within four months following bankruptcy.
There are many benefits and elements which must be taken into consideration before moving forward with Chapter 7 bankruptcy. After all, bankruptcy is a major decision. If you’re considering Chapter 7 or Chapter 13 bankruptcy, we encourage you to speak with an attorney from our team at DiTocco Law Group, PLLC. We can help you determine if bankruptcy is the best option for you, then help you chart the course to your success.
Keywords: Bankruptcy Fort Lauderdale | Chapter 7 Fort Lauderdale | Debt Fort Lauderdale