Debunking Bankruptcy Myths
In many cases, bankruptcy is the best chance that a person can have at getting his or her life back — bankruptcy can stop creditor harassment, pending lawsuits, eviction proceedings, and foreclosures. Unfortunately, the bankruptcy process is the subject of several myths that can be discouraging.
At Bello, Reilley, McGrory & DiPippo Attorneys At Law, we have several years of experience in navigating the bankruptcy process and related laws. If you have questions about the process and any misconceptions, contact our King of Prussia bankruptcy myths lawyers.
Don’t Be Misled By Bankruptcy Myths
Our debt negotiation lawyers can put your mind at ease regarding these and several other common bankruptcy myths:
MYTH: If you file for bankruptcy, your home will be sold to cover the debt.
The truth is that in most cases, you will be able to keep your residential home. Your home is a common exemption in Chapter 7 debt elimination proceedings. Chapter 13 reorganization proceedings will allow you to restructure your debt so that you can pay off your home, in addition to back payments.
MYTH: You must sell all of your personal belongings.
Generally speaking, you will be allowed to keep most of your personal belongings including your vehicle and at least a portion of your bank account balance.
MYTH: Filing for bankruptcy will ruin your credit.
Filing for bankruptcy may provide a start to improving your credit. If you’ve been buried by debt, your credit score is most likely very low already. Wiping the slate clean, so to speak, will allow you to start over and build a better credit score.
Helping You Keep Your Property
To speak with one of our experienced Philadelphia, Pennsylvania, filing for bankruptcy attorneys about these and other common bankruptcy myths, please contact us by email or call 610-992-1300 to schedule a free consultation.