Boca Raton Bankruptcy Lawyer

Common Myths about Bankruptcy

Myth: Filing Bankruptcy will ruin my credit.

False. It is important to remember that your credit is not the same thing as your credit report. Credit reports serve as a summary of your credit and payment history. Your credit, on the other hand, merely refers to your ability to borrow money. Bankruptcy will remain on your credit report for many years, however, your ability to borrow credit may increase since your struggle to pay bills that you could not afford will be over. Initially, the credit limits you are offered may be lower than you’d like. It may take you some time to prove your stability to a new creditor. If you prove to be a stable debtor over a long period of time, creditors will increase your credit limit accordingly.

Myth: I can only file for bankruptcy once.

False. It is possible to file for bankruptcy more than once, however, there are various restrictions on being able to file for bankruptcy after the first time. There may also be a few different consequences of filing for a second time, however, you do not become ineligible to file for bankruptcy just because you have had to file for it previously. The restrictions and consequences of filing for bankruptcy more than once are specific to your situation, so it is crucial that you contact a talented Boca Raton Bankruptcy Attorney to learn more about filing for bankruptcy consecutive times.

Myth: All of my assets will be seized and sold to settle my debts if I file for bankruptcy.

False. A trustee will be appointed to sell certain assets, but not all of your assets are subject to this fate. The type of bankruptcy that you file helps to determine how much the trustee is appointed to seize and sell. For example, chapter 13 bankruptcy allows the debtor to reorganize their debt in order to create a realistic payment plan. With Chapter 13 bankruptcies, the debtor is able to keep all of their assets. While some types of bankruptcy require you to turn your assets over to a trustee, there are many types that do not. Speak with a skilled attorney to learn more about the different types of bankruptcy and discover which may be the right choice for you.

Myth: Filing for bankruptcy is a sign of personal failure.

False. Many cases of bankruptcy are caused by job loss, divorce, illness, or other cases that may be completely out of your control. Bankruptcy is not a sign of failure, rather it is a chance to prevent yourself from being buried by your debt. Taking the right steps to control your debt will empower you and help you to learn how to handle credit and debt more carefully in the future.

If you are considering bankruptcy, it is in your best interest to consult an attorney to learn more about how the process may affect your life. Contact Boca Raton Bankruptcy Lawyer Eric N. Klein & Associates at 561-353-2600 today.