If unfortunate circumstances have forced you into problems with debt, you’re not alone. Many people can fall behind with bills and eventually become overwhelmed with feelings of despair. Bankruptcy is a federal program that can provide certain types of debt relief while providing you with legal protection from creditors. The problem is that, with so many bankruptcy myths out there, you may not fully understand your rights and how the process works.
Our Ohio bankruptcy lawyers at Kademenos, Wisehart, Hines, Dolyk & Wright Co. LPA understand that bankruptcy may sound like a worst-case scenario, but we also know that specific strategies can put you in a better position. There are ways to eliminate certain kinds of debt or structure a payment plan to help you get back on your feet. However, we first need to debunk five common bankruptcy myths that may be holding you back. To learn more about bankruptcy or for help throughout the process, contact us right away at (419) 625-7770 to schedule a no-cost, no-obligation consultation.
1. You Put Everything You Own at Risk
Many people assume that filing for bankruptcy means you could lose your house, vehicles, and other assets, but that isn’t always the case. In most situations, it’s likely you can keep most of your real and personal property. Chapter 7 bankruptcy allows you to protect certain assets as exemptions, mainly because these are the belongings you rely upon for daily life. Non-exempt assets are probably not worthwhile for creditors to seek through bankruptcy.
2. It’s Better to Pay Off All Your Debts
One of the most common bankruptcy myths is that, because of the hit to your credit score, you should pay your creditors. It’s true that bankruptcy affects your rating, but the relief of moving forward with less debt may be a preferable option. You should discuss your situation with an Ohio bankruptcy attorney who can help you determine if bankruptcy is the right strategy for you.
3. Your Financial Future is Ruined
There are consequences for filing bankruptcy, including limited opportunities for credit and higher interest on certain loans for seven to 10 years after the conclusion of your case. However, without the encumbrances of some debts, your credit score can start to improve shortly after you file.
4. Personal Bankruptcy is Proof You’ve Failed
You may feel that you have failed at life or that you’re a disappointment to others after filing bankruptcy. It’s more productive to view bankruptcy as a financial remedy that’s available for reasons because you incurred exorbitant medical bills, became unemployed, or endured similar hardship. Bankruptcy is a legal tool for debt relief, not an assignment of blame.
5. You Walk Away Debt-Free
Of all the bankruptcy myths, this one is among the most problematic. Through they provide debt relief, Chapter 7 or 13 will not always wash away all claims of creditors. You cannot escape certain legal obligations, such as taxes, child support, and some forms of alimony. Likewise, you will probably not avoid owing on student loans or any debts incurred through fraud. A bankruptcy attorney can tell you more about the types of debt you can discharge.
An Experienced Attorney Can Debunk These and Other Bankruptcy Myths
Though dispelling these myths may give you a better grasp on what you can and cannot accomplish through bankruptcy, there is still much more to know about the process. Due to the implications for your life and future, you should explore your options with an experienced Ohio bankruptcy attorney.
For more information on bankruptcy, contact Kademenos, Wisehart, Hines, Dolyk & Wright Co. LPA at (419) 625-7770 or online. You can schedule a free consultation with a knowledgeable Ohio bankruptcy lawyer who can explain how the process will affect your unique situation.