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Bankruptcy Myths Debunked

Even the savviest money managers can end up in a situation of debt. If you are trying to pay back your creditors but it’s too overwhelming, bankruptcy might be your best option. While this should also be a last resort, it may be necessary to file Chapter 7 or Chapter 13. You should also know that certain myths exist about bankruptcy, but these have been debunked.

You’ll Lose Everything

One myth about bankruptcy is that you’ll lose everything if you file. This isn’t true. You can keep your home and some assets that are exempt. The point of selling assets, however, is so you can pay back your debts. Whether or not there is equity in your home, you do not have to lose it. Instead, proper bankruptcy planning and chapter selection with applying the proper exemptions can help protect you.

You’ll Never Secure Another Loan

After you file bankruptcy, it may stay on your credit report 10 years. This leads to a misconception that you can never secure another loan during that time. However, around 90 percent of people who file can still receive a loan within 18 months. If you are wise and begin rebuilding your credit and paying back your creditors, you are far more likely to qualify for a loan or credit card earlier.

It Eliminates Your Debt

Bankruptcy does not completely eliminate your debt. Only certain debts can be discharged. Others, such as some tax debt, student loans, alimony payments and child support cannot be eliminated through bankruptcy.

It’s the Solution to Financial Problems

Although bankruptcy can give you a clean slate to restart your finances, it cannot solve all your financial problems. It doesn’t teach you better habits in terms of using credit or loans or how to save money. These are things you have to work on in order to be wiser with your money.

If you are filing bankruptcy in Utah, you need a good bankruptcy law firm in SLC, InfiniTeam Legal Solutions, on your side. You can discuss your situation with Salt Lake City bankruptcy lawyers who can assist you. Contact InfiniTeam Legal Solutions, a reputable bankruptcy law firm in SLC, immediately to talk with Salt Lake City bankruptcy lawyers.

Even the savviest money managers can end up in a situation of debt. If you are trying to pay back your creditors but it’s too overwhelming, bankruptcy might be your best option. While this should also be a last resort, it may be necessary to file Chapter 7 or Chapter 13. You should also know that certain myths exist about bankruptcy, but these have been debunked.

You’ll Lose Everything

One myth about bankruptcy is that you’ll lose everything if you file. This isn’t true. You can keep your home and some assets that are exempt. The point of selling assets, however, is so you can pay back your debts. Whether or not there is equity in your home, you do not have to lose it. Instead, proper bankruptcy planning and chapter selection with applying the proper exemptions can help protect you.

You’ll Never Secure Another Loan

After you file bankruptcy, it may stay on your credit report 10 years. This leads to a misconception that you can never secure another loan during that time. However, around 90 percent of people who file can still receive a loan within 18 months. If you are wise and begin rebuilding your credit and paying back your creditors, you are far more likely to qualify for a loan or credit card earlier.

It Eliminates Your Debt

Bankruptcy does not completely eliminate your debt. Only certain debts can be discharged. Others, such as some tax debt, student loans, alimony payments and child support cannot be eliminated through bankruptcy.

It’s the Solution to Financial Problems

Although bankruptcy can give you a clean slate to restart your finances, it cannot solve all your financial problems. It doesn’t teach you better habits in terms of using credit or loans or how to save money. These are things you have to work on in order to be wiser with your money.

If you are filing bankruptcy in Utah, you need a good bankruptcy law firm in SLC, InfiniTeam Legal Solutions, on your side. You can discuss your situation with Salt Lake City bankruptcy lawyers who can assist you. Contact InfiniTeam Legal Solutions, a reputable bankruptcy law firm in SLC, immediately to talk with Salt Lake City bankruptcy lawyers.

Our offices in Salt Lake City, UT provides legal services to the following counties: Davis, Weber, Cache, Morgan, Tooele, Summit, Iron and Washington Counties.

Address

299 So. Main Street # 1300
Salt Lake City, UT 84111

Phone

UT: 801-889-2560
WA: 425-533-4476

Cell Phone / Text Messaging — 801-712-8990
Fax: 866-559-9014