Misconceptions About Bankruptcy
Common Misconceptions About Bankruptcy
Creditors often provide debtors with false information or misleading information as a means of intimidation. If you are being harassed by creditors or collection agents, it is important to speak with an attorney who can advise you of your legal rights.
At O'Connor First, we provide experienced and caring legal representation for people facing debt problems. We represent individuals and businesses throughout Upstate New York.
If you are struggling with the stress of unmanageable debt, you do not have to face this challenge alone. Schedule a free consultation with an attorney at our firm today to learn about your legal rights and options. Call 518-465-0400 or contact us toll free at 877-886-4029.
Can I Keep My House If I File Bankruptcy?
Has a creditor told you that you will lose your home if you file for bankruptcy? Contact our firm to learn the truth. In a Chapter 13 bankruptcy, you can pay back debts gradually and often prevent a home foreclosure. With a Chapter 7 bankruptcy, you can reduce or eliminate credit card debts, medical debts and other unsecured debts.
Even in a Chapter 7 debt liquidation bankruptcy, you can protect your home. Certain assets, like a home of certain value and a car or truck of certain value, are free from liquidation — in other words, you can keep certain types of property and still file for a Chapter 7 bankruptcy.
Won’t Bankruptcy Ruin My Credit?
While bankruptcy generally does negatively impact your credit score, you are often better off declaring bankruptcy rather than allowing your score to drop from late payments and other negative consequences that come with holding massive amounts of debt.
The drop of score from bankruptcy also disappears after seven to 10 years, depending on the form of bankruptcy you take. While late payments also last seven years, this resets with every late payment you make.
Should I Be Ashamed Of Declaring Bankruptcy?
Not at all! Many people view bankruptcy as a personal failure, but anybody can fall victim to overwhelming debts. One medical emergency or job loss can cause you to get behind in your payments, and this can only get worse as time goes on.
While we are made to feel bad for declaring bankruptcy, banks and credit card companies continue to profit off our misfortunes. Bankruptcy laws exist to give consumers a second chance, and are vital to the success of our economy. By declaring bankruptcy, you free yourself to make purchasing decisions again, for the benefit of all of society.
Doesn’t Chapter 7 Bankruptcy Discharge All My Debts?
Not necessarily. Some debts are non-dischargeable — some of which, including student loan debt and federal and state tax debt. Some people don’t have these kinds of debts, in which case Chapter 7 bankruptcy may very well discharge all your debts. Otherwise, if you do have debt that is non-dischargeable, you can explore other debt relief options such as Chapter 13 bankruptcy.
We are a federally designated debt relief agency proudly helping people file debt reorganization plans and bankruptcy for over 35 years.