Bankruptcy Myths
Our Bedford Bankruptcy Lawyers Corrects Bankruptcy Myths
At The Law Office of Mark B. French, we focus on honesty and ensuring that our clients know what is involved in their situation. In many cases, our clients already have preconceived notions about bankruptcy and think that it can further damage their circumstances.
Although bankruptcy is not always the best option, we want our clients to have a clear understanding of this legal process. Below, our Bedford bankruptcy attorneys take a look at some of the most common bankruptcy myths and provides explanations as to why they are not true.
Debtors who file are financially irresponsible.
Although some individuals and companies that file for bankruptcy have directly caused their financial problems through irresponsibility, bad decision making is not typically the reason the average consumer needs to file.
Some of the more common reasons for bankruptcy are:
- Divorce
- Long-term unemployment
- Sudden job loss
- Medical expenses
You cannot repair your credit after bankruptcy.
This is not true. After you receive a debt discharge through bankruptcy, you can begin to slowly rebuild your credit. Lenders will realize that you do not have competing obligations and will offer you credit. Although interest rates will likely be high, your available credit will eventually increase. Individuals who file for bankruptcy are often surprised by how fast their credit is built when responsible habits are practiced after the bankruptcy process has been completed. With bankruptcy, you are given the opportunity to purchase a house in the future and pursue other financial actions.
If you spend a lot before filing, you do not have to pay that money back.
This is an assumption made by many individuals, but it is a myth. Spending with abandon prior to filing for bankruptcy is actually considered fraud when done intentionally. Debt that is incurred as a result of fraud will not be discharged. Do not be caught up in this misconception that can cause you to damage your bankruptcy case. When it comes to bankruptcy, you must be cautious in the actions you take and ensure that all requirements are met. If you are unsure of a particular action, discuss it with the lawyer at our firm.
Experienced Guidance Through Bankruptcy
Rather than walking blindly through your case, we encourage you to retain the legal service of our firm. We understand bankruptcy and your needs pertaining to debt relief. If you need a legal guide to pursue a successful result, we encourage you to put your trust in our firm. We can guide you through your case.
With more than 35 years of experience, our Bedford bankruptcy lawyers have proven their ability to help clients successfully complete their Chapter 7 and Chapter 13 bankruptcies.
If you have a particular question, get it answered as soon as possible by contacting us at The Law Office of Mark B. French.
