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Various myths and misconceptions have made debtors reluctant to file for bankruptcy. Most ended up with problems that they would not have encountered if they submitted a bankruptcy petition early. Through this post, you will learn about the process and gain proper knowledge about the situation with the help of bankruptcy lawyers in Raleigh, NC.
6 Common Myths About Bankruptcy
Filing for bankruptcy is best undertaken with an experienced attorney. Debtors with legal assistance during the proceeding are less likely to fall for misconceptions and other misleading information. Here are some of the myths that are commonly attached to bankruptcy:
- Bankruptcy leads to the loss of the debtor’s house, car, and retirement plan.
In North Carolina, there are exemption laws that protect normal and reasonable property. This includes the debtor’s house, car, and retirement. Individuals who fall under the “average” lifestyle category usually retain these types of property.
- Everyone is informed of the debtor’s bankruptcy status.
Bankruptcy is a public record as mandated by Federal Law. However, whoever files it are not revealed in public documents. Apart from the bankruptcy lawyers in Raleigh, NC, the only people who will know about it are the creditors and the people that the debtor will inform. Special access is needed to acquire the information. The status change is also not advertised.
- The debtor’s spouse has to file for bankruptcy as well.
The debtor’s spouse is not required to file for bankruptcy with them. In cases wherein both parties are in debt, it makes sense for both to file. This, however, is not required by law. Debtors can decide whether to include their other half in the bankruptcy. Any joint debt between them will still be owed by the spouse who did not file for bankruptcy.
- The court visits the house of the debtor.
The bankruptcy court deals with so many cases that they do not have the time to go to every debtor’s residence. Bankruptcy trustees have the power to do this under the law, but this is rarely enforced.
- Filing for bankruptcy is too expensive.
Most debtors find that bankruptcy expenses and fees only amount to around less than 10% of their outstanding debt or a few months’ worth of payments. Debtors are advised to file with Chapter 13 and Chapter 7 bankruptcy lawyers in Raleigh, NC to simplify the process and make bankruptcy more affordable.
- Debtors can never regain their credit.
Filing for bankruptcy helps get rid of debts that the individual cannot afford to repay. As a result, debtors can acquire more credit, letting them get back to paying the rest of their dues. Having less debt to pay also creates a better reputation for debtors with banks and lenders.
File for Bankruptcy with the Proper Help
Do not let these myths complicate your bankruptcy proceedings. Secure legal assistance from a Chapter 13 or Chapter 7 bankruptcy lawyer in Raleigh. Call Weik Law Office today at 919-845-7877 for a FREE consultation, and set up a time to speak with one of our professionals.