We frequently hear many negative assumptions about bankruptcy from clients and people in the community in general which simply are not true. There are a lot of myths out there surrounding bankruptcy and we wish to dispel the 5 we hear the most that we also believe, unfortunately, prevent some from filing for bankruptcy when it is indeed the best thing for them financially. Here are the top 5 myths we believe should be busted:
Myth Number 1: I Will Lose Everything
This is probably the number one fear we hear from potential clients. Many people believe if they file for bankruptcy they lose essentially everything they own. This is absolutely not true and no one should ever let this stop them from filing for bankruptcy if it is in their best financial interest to do so. The laws of Utah allow for specific bankruptcy exemptions to allow you to keep certain assets when you file for bankruptcy. We can explain in to you the detail of what personal property items you will likely be able to keep and which ones you will have to surrender to the trustee. The law does not want you to be left out in the cold with nothing; that is not the point of bankruptcy. A large number of your assets you will likely be able to retain.
Myth Number 2: I Will Never Be Able to Get Credit Again
Not true. While bankruptcy does put a ding in your credit, chances are if you are considering filing for bankruptcy in Utah, your credit is already shot. Still, you can bet that you will likely still be able to get credit very quickly after you file for bankruptcy. You will probably still be able to get a credit card; your terms will just be unfavorable so pay attention to that. After bankruptcy you can start taking certain steps to begin building credit right away.
Myth Number 3: Only Losers File for Bankruptcy
This is absolutely not true. There have been numerous individuals, many high profile and wealthy, who have filed for bankruptcy at one point and been able to bounce back stronger than ever. Many people go through a rough patch financially as a result of a divorce, illness or injury, and joblessness. This doesn’t mean you are a dead beat. Life happens and what matters more than anything else is how you eventually respond and whether or not you take proactive measures to build you life back.
Myth Number 4: It’s Too Hard to Filed for Bankruptcy
Bankruptcy can be a daunting task it is true. However, it is not difficult to find a good qualified lawyer at a decent price. At Utah Debtor Protection we do all the work for you so you don’t have to worry about all the ins and outs of the actual filing process. We represent you every step of the way so it is extremely easy for our clients to go through bankruptcy and they have professional support.
Myth Number 5: I Can’t File Because I Already Have Once
No it is not true that you can only file for bankruptcy once in your life. The truth is you can file for Chapter 7 bankruptcy in Utah every 8 years and Chapter 13 every 2 years in most cases. If you are going from a Chapter 7 to a Chapter 13 you will likely have to wait 4 years. The point is, it is not a onetime shot in any given situation. Assuming you have waited the necessary time for your type of filing, you may be eligible to file again and we can help. Call and speak with a Utah Bankruptcy Attorney at Utah Debtor Protection now for more information.
Now that you feel a little better about the bankruptcy process and starting new, pick up the phone and get us started today. We can usually tell you right over the phone whether or not bankruptcy makes sense for you. We offer free consultations and are available anytime so there really is no excuse not to check your options with us. You may have other myths swirling around in your head that are getting in the way of you filing. Call us now to find out if what you believe is the real deal or another false assumption.