Bankruptcy Myths Revealed
Get the facts from an experienced professional
Bankruptcy can sometimes have a bad name - many people feel uncomfortable
with the idea of filing for bankruptcy and the negative stigma that it
holds. If you are like thousands of Americans, though, bankruptcy could
help you significantly overcome your financial burdens and lead you to
a path of financial freedom. Furthermore, many of the negative associations
out there about bankruptcy are simply untrue or inaccurate.
At my firm, I strive to assist clients in effectively conquering this troubling
time, and I will use my experience and knowledge of the New York legal
system and federal bankruptcy laws to assist you. Below, you will find
answers to some of the most misunderstood bankruptcy myths.
If you are seeking answers about specific questions you may have, do not
contact me, Natasha Meruelo, Attorney at Law, today.
Fact vs. Fiction
Filing for bankruptcy will ruin my credit.
No! While filing for bankruptcy will stay on your credit report for a
period of years, bankruptcy can actually help you rebuild your credit.
Bankruptcy can act as a clean slate, lowers your debt to income ratio,
and you can start to open new credit cards and rebuild your debt once
you receive your discharge or sooner in some circumstances.
Everyone will know that I have filed for bankruptcy.
Gone are the days of published bankruptcy in the newspapers. While bankruptcy
does appear in certain documents such as your credit report, it is not
advertised to the world. You probably know at least one person who has
filed bankruptcy and yet have no idea that they filed unless they have
told you themselves.
My spouse is filing, so I have to file, too.
No, you do not. There is no requirement that just because you are married,
you both have to file bankruptcy. Your credit is separate from your spouse's
and usually only the person who is legally responsible for the debts should
consider filing for bankruptcy. However, there are exceptions to every
rule and I can help you determine if you and your spouse would both benefit
from filing together. As an experienced attorney, I can help!
I cannot save my home from foreclosure.
Yes you can! By filing for
Chapter 7 or
Chapter 13 bankruptcy, you could stop the foreclosure process and regain control of your finances.
You can also determine if you may be eligible for a loan modification
or afford to repay your mortgage arrears over time. To determine which
chapter is right for you, contact my firm as soon as possible.
I will lose all my assets and properties in bankruptcy.
No, you will not lose your assets or properties. In fact, even in Chapter
7 bankruptcy (liquidation bankruptcy) there are numerous assets and property
that are considered exempt - including your home and your primary source
of transportation. While there are caps on how valuable these assets can
be to be considered exempt, most of the time, I can help clients protect
these assets. I can help you determine if there are any risks to your
assets and property in bankruptcy during our free initial consultation.
Bankruptcy is shameful.
Absolutely not! There are thousands of Americans who file for bankruptcy
each year. Bankruptcy can happen to anyone - from the blue collar worker
to a doctor or lawyer - and most situations are due to an event or difficulty
that is completely out of your hands. Bankruptcy is an honest way to help
you rebuild your credit and regain financial control of your life.
I have medical debt. I am not eligible for bankruptcy.
Medical debts are one of the many types of debts that can be discharged
through bankruptcy. If you were involved in an accident, or had a sudden
illness that required you to accumulate debt in order to make ends meet,
you may be able to discharge these debts through bankruptcy.
I owe taxes. These cannot be discharged in bankruptcy.
If you owe income taxes, you may be able to discharge them in either chapter
of bankruptcy. In addition, most of the time, penalties for filing late
or failing to pay your taxes can also be discharged. These can be a significant
part of your tax debt. Complex rules apply to determine if taxes are dischargeable
and you should consult with a bankruptcy attorney before state or federal
tax liens are filed to maximize the potential bankruptcy benefits available to you.
Schedule a Consultation
Are you ready to get started on the road to a debt-free financial future?
Contact Natasha Meruelo, Attorney at Law today and schedule your
free consultation with my staff!
This is Attorney Advertising. Natasha Meruelo, Esq., designated as a Federal Debt Relief Agent by an
Act of Congress and the President of the United States, proudly assists
consumers seeking relief under the US Bankruptcy Code. Prior results do
not guarantee a similar outcome; see attached-