What Do You Believe About Bankruptcy?
There are prevailing assumptions when it comes to bankruptcy, causing many to believe that excessive spending and lifestyle habits are to blame for filing Chapter 7. This might be true in some cases. Yet, there are other reasons to file, which begs the question, “what do you believe about bankruptcy?” Consider the following discussion concerning the myths surrounding bankruptcy.
First, some believe that people who file for bankruptcy are financially irresponsible. To some degree, this is probably true. Even so, the majority of those that file for bankruptcy find themselves facing serious personal problems such as “losing a job, going through a divorce or suffering a serious illness,” as reported by Walter W. Miller Jr., teacher at Boston University School of Law. In particular, when individuals are without work for a long period of time, or when legal fees from a divorce are overwhelming, they might resort to bankruptcy.
Second, some believe that bankruptcy releases all past debts. On the contrary, bankruptcy is not the key to starting over, so to speak. For instance, those paying alimony or child support must continue to do so, as well as those ordered to pay restitution for a crime. In other cases such as student loans or tax-related debts, it depends on the type of student loan and if individuals filed tax returns.
Third, some believe that bankruptcy ruins credit scores permanently. The truth is—for those that file for bankruptcy, they can be approved for a credit card and even a mortgage within 1-3 years after filing for bankruptcy. It depends on the discharging of the debt associated with the bankruptcy, as well as individual circumstances.
We Provide The Personal Attention And Experience That You Need And Deserve
At Gingold & Gingold, LLC, we have dedicated our practice to helping individuals, families and small businesses resolve problems with all types of debt.
When you hire us, you can expect us to provide the personal attention and experience that you need and deserve. We’ll help you understand your bankruptcy options, including when and if to file and what to expect along the way. Most importantly, we’ll work to help you meet your financial goals. To schedule a confidential consultation to discuss your case, call Gingold & Gingold, LLC today.