Myths about Bankruptcy
Understanding How Bankruptcy Works
Bankruptcy myths are widespread and can prevent a person from considering this useful legal remedy when they are overwhelmed by debts. It is important to know the truth about bankruptcy so you can make the best decision possible regarding your finances. Common misconceptions about the bankruptcy process include:
- You will not be allowed to file for bankruptcy if you are employed
- If you are married, you and your spouse must file together
- All of your assets will be sold in Chapter 7
- Every debt must be fully paid off in Chapter 13
- You will never have credit again
In a bankruptcy case, a married couple can file a joint petition, or a spouse can file an individual petition. Before any petition can be filed however, the couple (or individual) will be required to take the means test to determine if they qualify for Chapter 7, non-exempt asset liquidation. Various exemptions exist that prevent assets such as child support, alimony, disability, unemployment and pensions from being used to pay back creditors. Other property may also be exempt depending on its value. If the results of the means test show that you are making enough money to pay your creditors, you will be required to file for bankruptcy under Chapter 13, the restructuring of creditor payment plans. Repayment plans will usually last between 3 and 5 years. If a debt has not been paid off by the time the repayment plan ends, it may be discharged. The process of repairing your credit can begin as soon as your bankruptcy petition has been approved. A Long Island bankruptcy attorney can discuss how to rebuild your credit and answer any other questions you have regarding the bankruptcy process so that you have the factual information you need.
Bankruptcy Lawyer in Long Island
If you are considering bankruptcy, Blutter & Blutter can review your finances and discuss your qualifications for Chapter 7. They are a highly experienced and compassionate bankruptcy law firm that has effectively represented clients in Nassau, Suffolk, Queens and Kings counties seeking bankruptcy protection. The firm has a thorough understanding of Chapter 7, Chapter 13 and Chapter 11 bankruptcy laws and procedures, and provides committed representation. Their clients are personally attended to by a qualified lawyer, and are never handed off to a paralegal or secretary. The firm maintains a small presence but also has the capacity for delivering comprehensive and skilled legal counsel in challenging cases.
Contact a Long Island bankruptcy attorney for trusted legal advice and representation if you are heavily in debt.