To file bankruptcy is serious. As such, you have to take it seriously. If you are thinking about filing Chapter 7, it is best to know everything that you can in advance. No one wants to be surprised during the process, after all. When it comes to bankruptcy, some of the facts are hidden beneath myths and misconceptions. If you are planning to file Chapter 7 bankruptcy, here are some of the facts behind the most common myths.
Some Debts Will Remain
When you file Chapter 7, you are able to discharge a lot of debt. However, you will not be able to discharge all your debt. There are some debts that are protected from bankruptcy. These debts include your student loans and child support debts. It is important that you talk with your lawyer about which debts you can discharge and which ones will remain. For most, the debts that you can discharge include medical debt, loan debt and credit cards.
You Will Retain Some Assets
Some believe that when you file bankruptcy, you will lose everything. Many worry about their cars and their home and other important assets. The truth is that you will not lose everything. You will be able to keep your home and most are able to keep at least one vehicle. In addition, you can keep items of sentimental value and other assets that are not excessive. Bankruptcy does not mean that you lose everything.
Bankruptcy Is Not a Failure
There is a common misconception that bankruptcy is a personal failure. Most Americans who have to file for Chapter 7 bankruptcy did not end up in that situation intentionally. In fact, the majority of those who have to file are those who had medical debt. You can’t control when medical emergencies are going to come up. Likewise, you can’t control what it’s going to cost you. Bankruptcy is not a failure. No matter how you ended up in debt, filing bankruptcy can be the most responsible decision that you can make. It can help you get back on track.
If you are considering filing for Chapter 7 Bankruptcy, it helps to have all of the facts in front of you. You want to make sure that you are making the right decision, after all. If you are on the fence or if you need to know more about how to file bankruptcy, contact a chapter 13 bankruptcy lawyer like The Law Office of Michael A. Ziegler, P.L., to get started with the process.