If you’re facing bills that you’re unable to pay, filing bankruptcy may be an effective solution. However, there are several myths surrounding bankruptcy that deter many from filing. There’s no one better to set the record straight than a bankruptcy attorney such as Mark O. Grater Attorney at Law. For more than 30 years, he has been helping Groton, CT, residents achieve the financial freedom they desire. Below, he corrects some of the most common misconceptions about bankruptcy.
Bankruptcy Attorney Debunks 3 Common Myths
1. You Will Lose All Your Property
If you choose to file a Chapter 7 bankruptcy, you may be required to liquidate assets to pay back your creditors. This means there is the potential to lose some property, but most states have a list of exemptions that protect certain assets from being sold. In the majority of cases, debtors can keep most of their possessions.
2. Your Credit Will Be Ruined
One of the biggest concerns people have about declaring bankruptcy is how it will impact their credit. While you can expect your credit rating to be affected, filing will provide you with the opportunity to start improving your score. If you are considering speaking with a bankruptcy attorney, there’s a good chance your rating is already low. Once your debt is discharged, you can begin rebuilding your credit for a new financial future.
3. All Your Debt Will Be Eliminated
Filing bankruptcy does not offer total debt elimination. Under Chapter 7, only unsecured debts are discharged. This means you will still be responsible for secured debts such as student loans, taxes, alimony, and child support. With Chapter 13, you will be obligated to devise a repayment plan.
Once you know the truth about the bankruptcy process, you can make an educated decision on whether it’s the best course of action for your financial situation. It’s crucial to get your information from an experienced bankruptcy attorney like Mark O. Grater Attorney at Law. Contact his office at (860) 449-8059 to schedule a consultation or visit him online to learn more about his services.