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Bankruptcy Myths

New Jersey Bankruptcy Lawyer

If you are contemplating filing for bankruptcy in the state of New Jersey, you may have heard misleading statements about bankruptcy from other sources. It is in your best interests to get the facts about the bankruptcy laws and determine if bankruptcy is the right thing for you to do.  Our New Jersey bankruptcy attorney can provide you with the information you need to make an educated and informed decision.  After reviewing your financial situation, we can advise you about your legal options in handling your overwhelming debt. Below are some of the most common misconceptions about bankruptcy.

If I file for bankruptcy, I will lose everything.

Most people do not lose their property. The majority of bankruptcy cases that are filed are "no-asset" cases, which means that there are no non-exempt assets with enough value that can be liquidated. When you file for bankruptcy, you do not have to give up everything you own. Personal belongings, household goods, furniture, pensions and more are exempt. There are also ways of keeping your home and your vehicle.

Filing for bankruptcy permanently ruins your credit.

If you need to file for bankruptcy because of insolvency, your credit has probably already taken a hit. By filing for bankruptcy, you will no longer be in a position where you cannot pay your bills. A bankruptcy generally stays on your credit report for 10 years but you can begin rebuilding your credit right away. Certain financial institutions specialize in extending credit to people who have filed for bankruptcy. This can be done through secured credit cards. Also, if you have maintained your home, car, or a paid-off credit card, by making prompt payments on these you can rebuild your credit score.

Filing for bankruptcy means you're a failure.

Most people who file for bankruptcy do so as a last resort and many of them wait too long to even consider it, digging themselves further into debt. The majority of people who file do so because of losing a job, reduced wages, a costly illness or accident, a divorce or separation, or some other event or misfortune not of their own making. The bankruptcy laws exist to give honest debtors relief from insurmountable debt and filing for bankruptcy is not a stain on your character.

You need a minimum amount of debt in order to file for bankruptcy.

This is not true. No minimum is required.

You only have to list the debts you want to eliminate in your bankruptcy.

You must list all of your debts in a bankruptcy filing. You can "reaffirm" those debts you wish to keep, such as mortgages on homes, car loans, and other secured loans. 

Contact the New Jersey Bankruptcy Lawyer at our firm to find out more about bankruptcy today!

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We are a federally designated debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.