Since so many people mistakenly take the bankruptcy procedure for the finishing line of their normal life, we decided to dispel the myths and give the clear answer – What is Chapter 7 bankruptcy? Why it may make your life way easier and allows to get rid of the daily headache caused by the creditors? Here we go:
There is no normal life after the bankruptcy.
The Truth: In fact, there are thousands of stories from the real debtors who have passed through the bankruptcy process and they not just got back to normal life but now run new, successful businesses with increasing income.
It’s a shame to file for bankruptcy.
The Truth: The thing is – nobody, except your bankruptcy lawyers and creditors will ever know you are filing for bankruptcy. Moreover, if you have a spouse, US bankruptcy court does not require you both to file unless you have your joint debts and neither your, nor your spouse’s income allows you to pay this debt.
It could be too late for filing for bankruptcy Chapter 7.
The Truth: Actually, the moment your petition is accepted and approved by the United States bankruptcy court, all current lawsuits and creditors’ collective activities stop. This is when your relief starts. There is NO “too late”. Receiving a notification from the court instantly disable creditors from claiming your debts.
Private and credit card debts can’t be discharged by bankruptcy.
The Truth: Since all private debts, medical bills and credit card debts are an unsecured type of debts, they are discharged (or at least dischargeable) by filing for Chapter 7 bankruptcy. So, you instantly receive relief of those types of debt.
You have to have a minimum amount of debt to get a right for filing for bankruptcy Chapter 7.
The Truth: It’s in fact one of the most often heard myths, which prevents many individuals from start filing. The answer is no! There is no minimum amount of debt; you have to only be unable to pay to debts according to your income. The other side is that it is not really reasonable to spend money on bankruptcy lawyers and take other expenses when the amount of your debt is quite small and bearable.
You will not be able to take a loan after the bankruptcy.
The Truth: It’s totally opposite. According to the “bank’s logic”, by having got rid of the past debts, an individual receives way better “debt to income” ratio. You can apply for getting a loan right after your Chapter 7 bankruptcy case is complete. Moreover, this new loan will help you to get back in the life race!
There is a risk of losing a job after the bankruptcy.
The Truth: Fortunately, the law restricts employers from discriminating you and making pressure on you in order to have you fired. In fact, employers admit that employees work and perform better results after getting rid of debts and it’s natural – they can finally think about work instead of being constantly depressed by the financial situation.
Many people are still in doubts whether the filing for bankruptcy Chapter 7 is a reasonable decision. The only thing you should know, that bankruptcy does not make you someone who is irresponsible or who is not able to succeed in life. Bankruptcy is a real help, which gives you an excellent opportunity to get rid of heavy burden and make a new start!
You can always call to our bankruptcy lawyers since the first consultation is free. Let professional attorneys help you to create a better future!