The decision to file for bankruptcy is a major one that many people feel unsure about because of the myths surrounding it. They worry that their credit will be permanently affected which will bar them from gaining access to much needed life privileges. The truth is most of the fears and myths surrounding bankruptcy are unnecessary and instead, it should be viewed as a tool to help you achieve financial stability. Consulting with your local bankruptcy attorney Bethlehem, PA located is the first step to dispelling the myths surrounding bankruptcy in order to make a well informed decision for your financial future.
One of the common myths that prevent people from filing for bankruptcy is that they will lose all of their possessions. This simply is not the case and in fact, most people who complete a successful bankruptcy will retain all of their assets as long as they continue to make consistent payments on them. Laws vary from state to state but in Pennsylvania, you are allowed certain exemptions when you file which will allow you to retain certain assets such as retirement accounts and wages. Your bankruptcy attorney Bethlehem, PA consultation is the best place to gain an understanding of what your rights are under the laws. In addition, your counseling session will help you to determine which type of bankruptcy filing is best suited to your individual situation.
Another common myth when filing is that once the process is completed, you will have all of your debts discharged. Unfortunately this is not the case and there is some debt that must be repaid even with a Chapter 7 filing. Secured debt, such as a mortgage or car loan, must continue to be paid in order to retain the assets. In addition, debt such as student loan debt, alimony or child support cannot be written off during court proceedings.
Many people shy away from filing because they fear they will not have access to credit. This is not the case and in fact many filers have had success with secured credit cards which help them to re-establish credit and build their score. Additionally, there are many financing options available which rely more heavily on income as a qualifier than one’ overall credit score. A qualified and experienced local bankruptcy attorney Bethlehem, PA located can offer valuable resources about the entire bankruptcy process. By meeting with a lawyer and discussing your options, you will be able to make an informed decision about whether this financial option is best for you.