A person who files for bankruptcy is often looking for some sort of financial relief as they have accrued far too much debt than what they can afford to pay back. While declaring bankruptcy can help a person eliminate and/or erase debt, it isn’t exactly an “escape” from all your financial obligations. Some debts are non-dischargeable which means you are still responsible for paying them back while creditors might challenge other debts you are trying to discharge.
There are pros and cons to filing for bankruptcy and many myths individuals aren’t aware of. If you are thinking about filing for bankruptcy, you first need to understand the various options there are and how they will affect your credit report. Vermont bankruptcy lawyers featured on USAttorneys.com can explain all there is to know regarding bankruptcy which can help you make an informed decision.
What are Some Bankruptcy Myths?
To help you better understand bankruptcy, below are some common myths broken down for you.
- You will lose everything– According to nerdwallet.com, many individuals seeking financial relief through bankruptcy think they aren’t going to be able to keep their most valuable assets including their car or their house. But, even if you file for bankruptcy in the state of Vermont, you can still keep these things and many more of the assets you have acquired over time.
For example, if you file for a Chapter 7 bankruptcy, you can exempt certain assets that are necessary for day to day life. The best way to ensure you are able to keep your most valuable possessions is with the help of one of our knowledgeable bankruptcy lawyers in Vermont. You are likely going to have creditors pursing you for some of these valuable items and if you want to both file for bankruptcy and keep some of these items, you are going to need a well-versed bankruptcy attorney who can express your need to do so.
As far as Chapter 13 bankruptcy goes, you are permitted to keep all of your assets, however, the value of them will likely be factored into the amount you are required to pay back in your repayment plan.
- If you pay off your debts, you are going to be in a better situation- While bankruptcy is going to take a hard hit to your credit score, “If your debts are more than 50% of your annual income and you see no way to pay them off within five years, bankruptcy is likely your best path toward living debt free.” Of course it is definitely going to be helpful to sit down and consult with a Vermont bankruptcy attorney before making such a drastic decision. The fact is, while bankruptcy can help some, it can hurt others so you do want to seek advice from a legal professional first.
Why Should I Hire a Bankruptcy Attorney in Vermont?
Aside from all of the reasons mentioned above, you need to be cognizant of the fact that the courts where you file your bankruptcy through aren’t going to be able to advise you or provide you with the guidance you might need. You will be responsible for filing all the necessary paperwork and representing yourself. This can be overwhelming and even confusing.
Our recommended Vermont bankruptcy lawyers will provide you with a free, no-obligation consultation so we encourage you to give us a call to take advantage of this now. They can further explain why you are going to need their help and what they can do to make the bankruptcy process easier.