Filing Chapter 7 bankruptcy is never easy. Most people feel like they have somehow failed and to compound the problem, there are so many myths out there about bankruptcy that it leaves people even more confused. The Chapter 7 attorneys in Philadelphia realize how confusing that is and work to dispel the myths surrounding bankruptcy when they can. Some of those myths will be dispelled below.
Myth # 1: You’re Going to Lose Everything
One of the biggest myths surrounding bankruptcy is that you are going to lose everything you own. In fact, the opposite is true. You are usually able to keep a lot of your possessions. Chapter 7 bankruptcy are oftentimes no-asset cases, which means that the person filing bankruptcy doesn’t give up their possessions.
Myth # 2: All Debts will be Relieved
While Chapter 7 does provide you relief from the debt you are in, there are some exceptions. For example, in most cases, you can’t be forgiven for debts that you are found to be responsible for personally. Some debts that are likely to remain unforgiven are student loans, recent tax bills, child support, and debts that are a result of a fraud that you committed.
Myth # 3: Bankruptcy Ruins Your Credit Forever
While there is no denying that filing Chapter 7 will limit your credit and have you paying higher interest fees for at least seven to 10 years, many people find that their credit actually improves shortly after filing. There are also many ways to rebuild your credit after you have filed bankruptcy. It takes time and determination, but it can be done.
If you are looking for information on your bankruptcy options, contact our Chapter 7 attorneys in Philadelphia at The Law Offices of David M. Offen for help and a free consultation.
