There is a lot of information available on the internet about bankruptcy. But, how can you tell fact from fiction? And, how do you know that what you’ve heard isn’t just a myth? I have been a bankruptcy lawyer for over 20 years. I know the facts when it comes to bankruptcy in Centennial, Aurora, and Littleton, and I want to help demystify bankruptcy for people. Bankruptcy is a legal right that many people write off because they buy into the myths. Today, I want to take a look at three common myths in order to dispel these misconceptions.
Myth #1: I’ll Never Have Good Credit if I File for Bankruptcy
I often hear people voice their concern about filing for bankruptcy: “I’ll never have good credit again!” This is simply not true. While filing for bankruptcy will temporarily lower your credit score, it is worth the initial loss for the long run benefits. Many people are worried they’ll never be eligible to purchase a home or a car after filing. Nothing could be further from the truth.
Eligibility to Finance a Car after Bankruptcy:
People are often surprised when they hear they can qualify for a car loan immediately after filing, and often, during the bankruptcy process itself. While the interest rates may be high, the option is there to buy a car immediately.
Eligibility for a Home Loan after Bankruptcy:
There is a longer waiting period for getting a home loan after filing for bankruptcy, but it is often a lot shorter than people think. There are many different timelines for a new home mortgage, depending on the type of loan and type of bankruptcy filed. If you are interested in learning more, contact me for a free consultation so we can take a look at your unique situation.
When you file for bankruptcy in Lone Tree, Highlands Ranch, or Parker, it will stay on your credit report for up to ten years. But, if you utilize bankruptcy to get a fresh start and rebuild your finances, the lowering of your credit score for a short amount of time will pale in comparison to the lack of financial stress in your life.
Myth #2: I’ll Lose Everything if I File for Bankruptcy
I often speak to people who have put off filing for bankruptcy for years. They do this because they are afraid they’ll lose everything once they file. In almost all cases, filing for bankruptcy would be a huge benefit and give financial relief, but people are concerned they’ll be homeless, and without assets once they file. This all comes from a misunderstanding of bankruptcy.
Most of my clients end up keeping all their assets.
In fact, in most cases, people don’t lose a thing when they file for bankruptcy. When you file for bankruptcy (Chapter 7 is the most common), all non-exempt assets will be liquidated (sold). When people hear the word “liquidated,” they run for the hills and ignore the benefits bankruptcy can provide. It is important to note that all non-exempt assets will be sold. Exemption laws keep certain assets from being sold – such as your house, or car. There are many types of exemptions, such as household good exemptions, and retirement accounts. In my experience as an affordable bankruptcy attorney, most of my clients who file for bankruptcy end up keeping all their assets.
Myth #3: Filing for Bankruptcy Means I’m Irresponsible
Filing for bankruptcy shows you are taking control of your finances and future.
When people come in for their free initial consultation, I often hear they have an aversion to filing for bankruptcy, because they think it means they are irresponsible – that they are a bad person. People are often embarrassed to meet with me – ashamed they are in such debt. I wish they could see what I have seen throughout the years as an expert bankruptcy lawyer; anyone could find themselves in a financial crisis. No one is exempt from life’s surprises and challenges. I have talked to hundreds of families who explained how they found themselves overwhelmed by debt. There are stories of medical emergencies; mothers who got cancer, bills to pay for a child’s medical treatment, or a horrible accident that resulted in a magnitude of medical bills. There are stories of job loss; men being let go during the recession, unable to find a job, and single mothers unable to make ends meet after losing a job. Stories of failed businesses, where a life was spent working on an idea that didn’t pan out. Whatever the situation, it has taught me that all kinds of good, hardworking people are overwhelmed by debt and file for bankruptcy. Don’t believe the lie that filing for bankruptcy means you are irresponsible or a bad person. Bankruptcy is a legal right which will allow you to get a fresh start and create a brighter future. Nothing could be more honorable that taking control of your life and striving for a better life.
Why You Need a Lawyer When Filing for Bankruptcy
As an experienced bankruptcy lawyer, I can help you file successfully.
There are many hurdles and obstacles to overcome when filing for bankruptcy. These are mental and emotional, as well as financial. Don’t go through this process alone – work with an understanding bankruptcy lawyer who can guide you effortlessly through the process to ensure you get the best bankruptcy discharge possible. I have been a bankruptcy lawyer for many years, and have successfully helped hundreds of families go through this process. It is important to be knowledgeable about the details of bankruptcy – a good attorney will know of additional exemptions which will save you money in the long run. Hiring an attorney is priceless – you’ll have the peace of mind you need as you go through the bankruptcy process.
If you are struggling to overcome the myths of bankruptcy, contact experienced bankruptcy attorney Barry Arrington for a free consultation to discuss the facts of bankruptcy, and how it can benefit your life. Contact him today at 303-205-7870. He will help you get the best fresh start possible.