Dispelling the Myths Surrounding Bankruptcy
Debunking the False Information about Your Rights under Chapter 7 and 13
You’ve lost your job or you’ve been hurt and can’t work. You’re falling further behind in virtually every financial obligation and there are no realistic prospects for a change of fortune. You’ve been considering seeking protection under the American bankruptcy laws, but you’ve been scared off by a lot of the things others are telling you—
- That you’ll be left with nothing
- That you’ll never be able to get credit again
- That you may not even qualify
- That bankruptcy is an admission of failure, used only by irresponsible people
Don’t believe these misrepresentations about bankruptcy. They’re mostly spread by individuals who’ve never faced unexpected circumstances, or by businesses that often take advantage of consumers. Here are the truths about bankruptcy filings:
- In any type of bankruptcy, you’ll get to keep some of your property. Even in Chapter 7, where you must relinquish assets to the bankruptcy trustee to satisfy creditors, there are property exemptions under both state and federal law. With a Chapter 13, you won’t have to give up any property.
- Chances are good that you’ll find it easier in the long run to have access to credit. Though your credit score may take an initial hit, many creditors will view your decision to file for bankruptcy protection as a positive sign, that you are willing to do what is necessary to turn things around. Furthermore, if you discharge some of your debts, you’ll have more disposable income to meet your obligations.
- While you must submit to a means test to qualify to discharge assets under Chapter 7, most people can file for reorganization under Chapter 13 (unless your total debt exceeds $2,750,000).
- Bankruptcy is a well-designed method to help people get a fresh start after unforeseen events cause a financial crisis. Many famous and ultimately successful Americans, including Walt Disney and Abraham Lincoln, took advantage of the bankruptcy laws.
Contact Attorney Howard N. Sobel
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
Named a New Jersey SuperLawyer Every Year since 2008, Including 2023