Chapter 7 Bankruptcy Myths

Long Island Chapter 7 Bankruptcy Attorney

There are many myths surrounding Chapter 7 bankruptcy. If you are considering filing for Chapter 7 bankruptcy, but have some concerns, you should take a moment to read through this website and consult an experienced Long Island Chapter 7 bankruptcy lawyer. You may find that what you think is true about bankruptcy is really just a myth.

Myth #1: I will my house, car, and other valuable assets.

Fact: Although some of your debts will be liquidated to repay your creditors, not all of your assets will be subjected to liquidation. Certain assets, such as your home and motor vehicle, are often protected from liquidation.

Myth #2: I will never be able to buy a home or car again.

Fact: Although it may be difficult to obtain a car or home loan within the first few years after filing for bankruptcy, many people are able to buy a car within a year and a home within two or three years after filing for bankruptcy.

Myth #3: My credit will be permanently ruined.

Fact: This is perhaps one of the biggest misconceptions about Chapter 7 bankruptcy. Many people believe their credit will be permanently ruined after filing for bankruptcy. However, this is simply not true. Although your credit rating will suffer initially, you will find that you’ll be able to start rebuilding your credit within months after your debts have been discharged.

Myth #4: My boss will find out and fire me.

Fact: There is no law that states employers must be notified if their employee files for bankruptcy. In fact, the only way your boss will found about your bankruptcy is if you say something or if they happen to search the public record. In addition, your boss cannot fire you because you filed for bankruptcy. If your boss fires you because you filed for bankruptcy, he/she will be in violation of wrongful termination laws, giving you the right to pursue legal action in civil court.

Myth #5: Only losers and deadbeats file for bankruptcy.

Fact: This statement could not be further from the truth. Many good, hardworking people have needed to seek debt relief through Chapter 7 bankruptcy. There are many circumstances that could cause an otherwise responsible person to fall behind on their debts, such as a family emergency, sudden illness, unexpected job loss, etc.

If you are interested in filing for Chapter 7 bankruptcy, but have some concerns you would like to discuss, please do not hesitate to contact a Long Island Chapter 7 bankruptcy attorney at Jacoby & Jacoby today!