Dispelling the Myths of Bankruptcy
In today's economy, there are many people who are finding themselves in tough financial situations. For this reason, there has been an increased interest in bankruptcy. Unfortunately, many people don't know the truth about this process. There are many bad rumors that have been spread as to the negative effects of bankruptcy, most of which are either false or overstated. This is a process that is designed to assist individuals and businesses that have fallen behind. Therefore, it is not designed to destroy your financial future. On the contrary, bankruptcy was designed to help individuals and businesses move ahead.
Understanding Your Bankruptcy Options
One common myth that people hear is that if they declare bankruptcy, they will have to give up their home and car. Some people even say that if they declare bankruptcy, they will never be able to own a car or home again. This is simply not true. The truth is that in most cases, your home and car will be fine. These are considered to be exempt property during the Chapter 7 liquidation process. There are some cases, however, in which the court may decide that you are living well beyond your means. In this case, your car or home may possibly be considered non-exempt property during the Chapter 7 process. Also, you can normally by a home or car two years after the bankruptcy process. In some cases, it takes less time to be able to buy a car.
Does Bankruptcy Destroy Your Credit?
Another common myth about bankruptcy is that it destroys your credit. This is certainly not true. Here is the truth. Bankruptcy will stay on your credit sheet for about 10 years. Many people think this is far worse than it actually is. What destroy credit are unpaid debts. Remember that when you file for bankruptcy, your bad credit is erased. This means that you can basically start anew. The point of bankruptcy is to help people who have fallen behind get a new start. This is why having bankruptcy on your credit sheet is not a bad thing at all. People looking at your credit will most likely see that you are a person without debt.
Learn the Truth About Bankruptcy
If you are considering filing for bankruptcy, your best bet is to consult with a Bakersfield CA bankruptcy attorney. This is the only way to know for sure if bankruptcy is the best choice for you and how it will affect your future. If you are unsure if you would qualify for bankruptcy, or if you are wondering how it will affect your future plans, there is no better way to ease your mind than to contact us today at 661-952-9740 for a free consultation and find out the truth about filing bankruptcy in Bakersfield.