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Top Myths About Bankruptcy Filings

Before filing for bankruptcy many people try to research it on their own to see what they are getting into. If you are not careful, you will find yourself loaded down with a lot of bad advice and misinformation. If you are curious about how a bankruptcy will affect your current financial situation, then you need to consult an expert Stockbridge GA Bankruptcy Attorney for some straight answers.

When researching bankruptcy, these are the myths you should be watching out for:

  • You can't qualify for bankruptcy. This used to be true until the bankruptcy laws were changed in 2005. Now most people will be able to qualify for either Chapter 7 or Chapter 13 depending on very specific criteria. If you are not sure which type of bankruptcy would be right for you then you should talk with a Stockbridge GA Bankruptcy Attorney
  • Your credit will be ruined forever. This is wrong for a lot of different reasons:
    • If you are considering a bankruptcy then your credit is already in a downward spiral.
    • The main reason people have a bankruptcy is so that they can start building back their credit and get a fresh start.
    • A bankruptcy only stays on your credit report for ten years.
  • You will lose your house and car. This is not always the case. If you are filing a Chapter 7 bankruptcy then assets like these will be sold to pay your debts. If you are filing for Chapter 13 then these assets will most likely be exempt.
  • You will lose your retirement fund. It depends on what you call your retirement fund. If you have money invested in an IRA or 401k then they will most likely be exempt from bankruptcy proceedings. However, you should double check with your Stockbridge GA Bankruptcy Attorney to make certain.