If you’re having trouble paying off your bills, you should look into all of your choices for putting your finances back on track. This includes bankruptcy! People are sometimes hesitant to consider bankruptcy owing to misunderstandings about what it is and what it entails.
Contacting the best bankruptcy lawyer in Riverside CA is the greatest method to acquire correct information about your alternatives, but in the meanwhile, let’s dispel these top 10 bankruptcy myths. Then contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for help.
Myth: Bankruptcy will wreak havoc on your credit score
By the time your bills have become so severe that you’re considering bankruptcy, your credit is almost certainly already in horrible shape. Bankruptcy can really lay a solid basis for quickly restoring your ruined credit.
Myth: Bankruptcy is for morally reprehensible individuals
While it is admirable to want to pay off all of your bills in a timely manner, it is not unethical to take advantage of a legal option that will help you get out of debt.
Myth: Before filing, you should pay off your automobile loan
Actually, you may normally keep your automobile throughout a bankruptcy case, as the bank lien on it prevents the bankruptcy trustee from seizing it. Your bankruptcy lawyer in Riverside CA can help you determine what actions to take before you formally file.
Myth: You should first spend down all of your retirement funds
Retirement funds are not subject to bankruptcy if they are held in the appropriate types of retirement accounts. You don’t want to close these accounts before filing for bankruptcy.
Myth: Before filing, you should pay off some of your bills in full
Sometimes people borrow money from relatives or friends and want to make sure they are reimbursed before filing for bankruptcy. Unless you pay off such obligations at least a year ahead of time, the bankruptcy trustee has the authority to seize the money from the lenders and disperse it as he or she sees right.
Myth: You can conceal assets by putting them in the name of someone else
If the bankruptcy trustee discovers that you’ve done this, the assets might be seized. Furthermore, they might be able to persuade the court to deny you a discharge since you lied about your holdings.
Myth: Bankruptcy will not shield you from creditors
Getting the best bankruptcy lawyer in Riverside CA will require your debt collectors to cease contacting you and instead contact your attorney. Furthermore, many of the unsecured debts that the collectors are concerned about will almost certainly be dismissed as part of your bankruptcy.
Myth: There is a seven-year waiting period between filings
Actually, the amount of time you must wait between filings is determined by a variety of criteria, but it should never exceed seven years.
Myth: Consolidation of debt is preferable to bankruptcy
In many circumstances, debt consolidation does not truly benefit the customer by reducing the debt load. Because many debts are totally wiped in bankruptcy, it gives greater and speedier relief.
Myth: Bankruptcy should only be considered as a last option
Don’t put off thinking about bankruptcy until you’ve squandered all of your money. Filing as soon as you discover you’re in difficulty might help you in the long run. Contact Law Offices of Terrence Fantauzzi at (909) 552-1238 to speak to the best bankruptcy lawyer in Riverside CA.