Just like all other legal processes and proceedings, bankruptcy can not only be difficult to navigate, but it can also be a little bit scary. Luckily, most of the things about bankruptcy that make it seem like a scary and difficult process happen to be nothing other than misinformation. This is why it is so important to speak with an experienced Jacksonville Bankruptcy Attorney who can aid you in weighing your options, assist you in deciding if bankruptcy is right for you, help you understand exactly what to anticipate when filing bankruptcy, and inform you on how filing bankruptcy will affect your today as well as all of your tomorrows. The more knowledge you have and the more you are prepared the easier it will be to make filing bankruptcy as easy and smooth of an experience as possible. Here are some of the biggest bankruptcy fables debugged:
Fable 1: Those who file bankruptcy are fiscally irresponsible.
Of course, there will always be individuals who are irresponsible and abuse the right to file bankruptcy. But in reality, the majority of people who file bankruptcy are good people with good intentions who have suffered a job loss, a divorce or illness. All of which have either lowered their income or increased their expenses, which in turn, have prevented them from being able to pay all of their expenses.
Fable 2: If I file for bankruptcy, everyone will know.
Yes, who files bankruptcy is public knowledge, but that is only because most bankruptcy documents are a public record, which is the same with the majority of all other legal proceedings. However, the fact that you filed bankruptcy will not be published in your local newspaper. In order for someone to find out that you have filed bankruptcy, they will most likely have to run a background check or pull your credit report. The other exception is for attorneys. Most attorneys have usernames and passwords that allow them to search the bankruptcy court dockets.
Fable 3: I will lose everything, including my house if I file bankruptcy.
False. In reality, the contrary is very much true. Most people who file bankruptcy get to keep all, or at least almost all, of their property. This is because you are allowed bankruptcy exemptions that allow you to keep your property safe. If you have a mortgage on your home, you simply reaffirm the mortgage and continue making your monthly mortgage payments as if you never filed bankruptcy. However, make sure you can afford your mortgage payments before reaffirming the debt. This is also true if you are financing your vehicle.
Fable 4: Consolidating or paying off my debt is the better option.
This one depends. It depends on how much your overall debt is. This also depends on what your debts are for, as well as your overall financial situation and your plans for your future. An experienced bankruptcy lawyer can assist you in determining which option is best for you.
Fable 5: All of my debts will be forgiven.
This is unfortunately not true. While most types of debts will be forgiven, certain debts will not be forgiven when you file bankruptcy. Student loans, alimony, child support, and IRS debt are examples of some of the debts that are not dis-chargeable through bankruptcy.
Fable 6: If you are married, you and your spouse must file bankruptcy together.
Again, this is not true. You and your spouse most definitely can file bankruptcy together. However, you do not have to. Actually, in some circumstances, it might make sense not to file bankruptcy with your spouse.
If you are considering filing bankruptcy, please speak with an experienced Jacksonville Bankruptcy Attorney who can help decide if filing bankruptcy is right for you and your family. Contact the Law Office of David M. Goldman, PLLC at 904-685-1200 for a free initial consultation.