Bankruptcy Myths To Help You Differentiate Fact From Fiction

Filing for bankruptcy is never a pleasant nor a simple experience. One can get caught up in all the false information and misconceptions that has been said about this painful process. Despite this very confusing area of law that needed to be navigated, it is important to speak with a Baltimore bankruptcy lawyer before you proceed in filing for bankruptcy. Moreover, we are here to clear up some of the common myths in order for you to differentiate fact from fiction:

  • You will lose everything: This is a huge misconception because most people who file for bankruptcy do not end up losing anything. While laws can vary from state to state, it is important to consult with Baltimore bankruptcy lawyer who knows the proper laws of your location and what options you have. There are various exemptions that can be used in order to protect your home, property, pension, insurance plans, and personal injury claims, among others.
  • Filing for bankruptcy shows how financially irresponsible you are: There will always be people who will judge your actions. However, they are not the ones in your shoes. This can be a very serious and personal problem, especially if you have lost your job, you are going through a divorce, or you are suffering from a serious illness. These are just some of the few reasons why many people file for bankruptcy, but it does not mean you are financially irresponsible.
  • You can only file for bankruptcy once in your life: You can definitely file for bankruptcy more than once in your life. If you file a Chapter 7 bankruptcy, you can receive a discharge once every 8 years. On the other hand, if you file for a Chapter 13 bankruptcy, you can receive a discharge every 2 years. Also, after completing a Chapter 7 bankruptcy, you have to wait 6 years before getting a Chapter 13 discharge. If you get a Chapter 13 bankruptcy, you have to wait 4 years to obtain a Chapter 7 discharge.
  • You can go to jail if you owe large amounts of money: Owing money is not going against the law and there is no such thing as going to prison for being in debt. However, they can sue you, take you to court, lien your property, and garnish your wages. The only way you can get arrested is if you commit a crime by fraud, hiding property, or refusing to pay your income tax.
  • Filing for bankruptcy can be expensive: The fees for filing Chapter 7 and 13 can vary, but they are usually no more than $340. Moreover, you also have to pay fees when hiring an attorney, but this depends on the firm that you hired and type of bankruptcy that you decided to apply for. You can file for bankruptcy without any help, but it is not recommended considering the law can be very complicated. While it may sound like a pricey option, it can actually help you keep a few bucks and save you from racking up higher expenses in interest and penalties, on debt that you might not be able to pay. In the long run, this could be harmful to your finances than declaring bankruptcy.

There are various myths that could be far from the truth. For this reason, Baltimore bankruptcy lawyer, Richard Hackerman is one of the best Attorneys to consult with. He will answer any of your questions and help you with your legal issues. You can contact him today for a free consultation at 410-243-8800.

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