Bankruptcy Myths
Professional Chapter 7 and Chapter 13 Litigators
When it comes to the topic of bankruptcy, many people have false assumptions or beliefs. Below are some of the most common bankruptcy myths that The Arizon Bankruptcy Law Firm hears from clients:
- Bankruptcy is not a legal process. Bankruptcy is a legal process and is defined as the elimination or repayment of debts to creditors and it is a binding process that is ruled by both federal and state laws.
- Filing for bankruptcy on my own will produce the same results as working with a lawyer. This is completely false as people who secure qualified legal representation often obtain more favorable outcomes.Additionally, when people work with a bankruptcy lawyer, they will receive help with their legal paperwork, answers to their questions and assistance from an advocate who has their best interests in mind.
- Bankruptcy will ruin my credit forever. While a bankruptcy will appear on a person’s credit report for 7 – 10 years, it will not destroy their credit indefinitely. Over time, people will have a chance to improve their credit by making sound financial decisions. Also, after 7-10 years, the bankruptcy will be removed which should lead to an increase in the person’s credit score.
- People who file for bankruptcy cannot get credit until the bankruptcy is removed from their credit reports. This is definitely a myth as more lenders are giving people second chances and extending credit lines after people have filed for bankruptcy. Additionally, people can get pre-paid credit cards which can help them boost their credit scores if they are responsible.
- Anyone can file for bankruptcy. This is false as people must meet certain requirements before they can file for bankruptcy. People must meet residency requirements, participate in credit counseling, take the means test and also cannot have filed for bankruptcy in the past years in order to be eligible for Chapter 7 or Chapter 13 Bankruptcy.
Arizona Bankruptcy Lawyers
If you are having a difficult time keeping up with your financial obligations, now is the perfect time to review your options with an experienced Arizona bankruptcy lawyer, like the lawyers at The Arizona Bankruptcy Law Firm.
The Arizona Bankruptcy Law Firm is committed to helping individuals throughout the state of Arizona file for Chapter 7 and Chapter 13 so they can get out of debt quickly.