Common Bankruptcy Myths

San Fernando Valley Bankruptcy Lawyer

Bankruptcy has had a negative stigma placed on upon it which has allowed for the proliferation of many myths about the process.  These myths are often the product of false ideas or uninformed opinions.  Some of the more common bankruptcy myths include:

• You cannot file for bankruptcy if you are employed  - This is false.  In a Chapter 13 bankruptcy, the individual makes payments to their creditors according to an agreed-upon payment plan.  It would not be possible for the person to make these payments unless they have a job.
• You lose all your possessions in a bankruptcy - False.  The majority of bankruptcy cases are "no asset" cases, which means the individual who is filing has no substantial valuable assets that require liquidation.  In cases like this, the individual is able to keep all of their possessions.  In addition, bankruptcy exemptions will allow for certain assets to be retained by the individual in a bankruptcy, or dictate that certain assets are not allowed to be touched by the bankruptcy court.
• You cannot obtain credit or a loan for 10 years after a bankruptcy - False.  It is possible to borrow money in the middle of Chapter 13 proceedings, and those who have completed a Chapter 7 bankruptcy may have access to low limit credit cards.
• Bankruptcy constitutes a personal or moral failure on one's part - Again, false.  Most bankruptcies are filed due to factors outside a person's control.  These factors include job loss, illness, and other circumstances difficult for the individual.  Bankruptcy is not a punishment; it is a legitimate method for freeing oneself from extreme financial difficulty.

For further information on the true nature of bankruptcy, it is recommended you contact a San Fernando Valley bankruptcy lawyer today.

Bankruptcy Help from a Skilled Attorney

The Law Offices of John Ribarich has helped many people through their bankruptcy cases.  We provide attentive one-on-one service to our clients to assist in making their bankruptcy proceedings as smooth as possible.  Contact us today if you have questions about bankruptcy, and we will help you determine if it is the right option for you.

There are many myths and false ideas surrounding bankruptcy.  Contact a San Fernando Valley Bankruptcy Lawyer for accurate information regarding bankruptcy and how it works.