Many people think they know what bankruptcy entails, whether from hearing about a friend’s experience or from watching television commercials that tout the many benefits that bankruptcy can bring. And while there are benefits, there are also serious consequences (as well as many misconceptions that an expert bankruptcy lawyer in New York City can address and set straight for you), so it’s important to have all the facts.

Even if you’re familiar with previous bankruptcy laws, the consumer bankruptcy laws were updated and changed in 2005 to make filing for bankruptcy more restrictive. And while there are additional hurdles to be met in filing for bankruptcy, it’s still a very viable alternative for many people. A professional bankruptcy lawyer in New York City is the best person to evaluate your unique situation and see if filing for bankruptcy may be right for you.

Some of the more common myths about bankruptcy include:

1.  I’ll lose my home:  MYTH.

Filing bankruptcy under Chapter 13 allows you to keep your primary residence, and does not force you to sell. A reputable bankruptcy lawyer in New York City can advise you further about whether you qualify to file for Chapter 13.

2.  If I file for bankruptcy, it will be impossible to ever get credit again:  MYTH

While filing for bankruptcy does impair your credit, you’ll be able to begin rebuilding your credit as soon as you obtain a final discharge. And by starting fresh, many people find that their debt-to-income ratio is substantially lower, thereby giving them more disposable income to qualify for some type of credit.

3.  I make too much money to qualify for bankruptcy:  MYTH

While this may be true for Chapter 7 bankruptcy, it’s seldom the case for Chapter 13, which was in fact set up for people that have assets and a way to restructure their debt. An experienced bankruptcy lawyer in New York City can evaluate your situation to see if this is the case for you.

4.  I filed bankruptcy before, therefore I’m not eligible to file again:  MYTH

While there are limitations, generally you’ll be able to file gain for bankruptcy within a period of 6 to 8 years. Again, a qualified bankruptcy lawyer in New York City can advise you best about your personal situation.

5.  Filing Bankruptcy is only for deadbeats:  MYTH

The bankruptcy laws are in place because the government realizes that even good people who want to pay their debts often encounter life-changing events (such as divorce, the loss of a job, or insurmountable medical bills) that severely impact their ability to pay their debts. A qualified bankruptcy lawyer in New York City, won’t judge you, and can help you start down the road to financial recovery.

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