Gillespie & Murphy, P.A.
Call For A Free Consultation : (252) 558-1374

Common misconceptions surrounding bankruptcy

At one point and time, the concept of bankruptcy was not well known. In fact, it had a bit of a bad connotation.

Over the years, people have gained a greater understanding of the process and how it can benefit them. However, there are still a few myths that cause people to question whether bankruptcy is a good option for them.

Debt relief

One of the most common myths people believe about bankruptcy is that they will lose everything. In certain cases, depending upon the type of bankruptcy they pursue, they may not lose a majority of their assets. For instance, parties who qualify for Chapter 7 bankruptcy may be able to keep most of their assets through available exemptions. On the other hand, some parties mistakenly believe that going through bankruptcy will erase all their debts. The court deems certain debts, such as back taxes, alimony and child support, as the sole responsibility of the debt holder that they must pay.

Filing

Contrary to popular belief, filing for bankruptcy is not a financial failing, and paying off debt is not always a better choice. In fact, for those who spend over 50% of their annual income paying for their debts, and who are not able to pay off those debts within five years, bankruptcy can be a beneficial choice for financial relief.

The future

Beyond the actual filing process for bankruptcy, some people believe that undergoing bankruptcy will ruin their financial future and possibly affect their employment options. While bankruptcy does put a ding on a person's credit report and remains there for seven to 10 years, filers tend to see their scores increase drastically within a few months' time. Also, there are laws in place to protect filers from employment discrimination.

Though bankruptcy may not be right for all, it can be quite helpful for those who can and choose to utilize it. Gaining a full understanding of the process and having a plan for moving forward after the process is complete are key to success.

No Comments

Leave a comment
Comment Information
Attorneys Email Us For A Response

Need Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Four Different Locations To Serve You Schedule an appointment at our New Bern, Wilmington, Greenville, or Jacksonville office.

Wilmington Office
321 North Front Street
Wilmington, NC 28401

Phone: 252-558-1374
Fax: 910-254-3444
Wilmington Law Office Map

Gillespie & Murphy, P.A.
320 Middle Street
New Bern, NC 28560

Phone: 252-558-1374
Fax: 252-636-0625
New Bern Law Office Map

Jacksonville Office
200 Valencia Drive, Suite 119
Jacksonville, NC 28546

Phone: 252-558-1374
Jacksonville Law Office Map

Greenville Office
101 W 14th St, Suite 101
Greenville, NC 27834

Phone: 252-558-1374
Greenville Law Office Map