Sunday, November 6, 2011

Chapter 7 - Fact vs. Fiction

Answers to commons questions

If you are considering Chapter 7 bankruptcy, you may have heard different things from different people about the impact your filing will have on your life. Chances are, some of the information you received is fact and some of it is probably fiction.

Below, your local bankrutpcy lawyer has highlighted 3 common myths:

1. When you file for Chapter 7, all of your debt is erased. This, unfortunately, is a myth as certain debts may not be subject to discharge. For example, if you have student loans or unpaid tax bills, these debts will not be eliminated.

2. You'll lose all your possessions. When you file for Chapter 7, some of your assets may be liquidated for money that is used to pay back your creditors. However, liquidation occurs on a case-by-case basis and there is a possibility that you can still keep your assets.

3. Filing for bankruptcy is easy so you don't need a lawyer. Like any legal process, filing for bankruptcy is quite serious and the process is governed by a unique set of laws. If you do not comply with the laws or fail to submit required information, a judge may deny your bankruptcy petition. With this in mind, working with a bankruptcy attorney is a wise idea as you will have a legal professional on your side who can handle your filing from start-to-finish.

Need help with your Chapter 7 filing in Southern California? Contact a local bankruptcy lawyer today! The banks have lawyers, you should have fighting for you also! Contact your local Bankruptcy Lawyer today at (951) 226-5294.

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