Bankruptcy is the lawyer’s primary focus in order to assist their clients through court proceedings to reduce or eliminate debt or to proceed forward with bankruptcy and boulder attorney DUI. There are various myths associated with bankruptcy that must be cleared in the first place.
Here are the most common myths about bankruptcy:
Myth: You Will Never Get Credit Again if You File For Bankruptcy.
Fact: This is by far the most common myth people often get fooled with, it is not true as once you file for bankruptcy, you can easily stay on your credit report for up 10 years from the date of filing, or you can begin to rebuild your credit as soon as your bankruptcy is closed. There are plenty of people who purchase new homes, vehicles, and even qualify for credit cards a few months after the bankruptcy is concluded. In fact, many of them even start offering credit right after discharge. With proper planning and counseling, you will be able to get credit much sooner than expected.
Myth: Filing bankruptcy is difficult and can result in an audit
Fact: This is untrue, as in most cases a bankruptcy attorney in boulder is considered to be much easier. The reason being, the law requires to be filled out while submitting it to the court and most of the work is then completed by electronic filing. Other areas include values for a property, bank statements and certain tax returns for 2 years and 6 months of a list in your debts. In the rare instance of an audit, they are successfully assisted through clients and the audit with no problems.
Myth: You are not allowed to file bankruptcy by yourself if you are married.
Fact: The bankruptcy laws permit anyone to file for bankruptcy, whether you are an individual or jointly moving forward to file. If you are married, you and your spouse must decide if a joint filing, which is indispensable. The bankruptcy helps to eliminate and restructuring the joint debts.
Myth: One can file for bankruptcy only once
Fact: No, the truth is a bankruptcy attorney in boulder can be filed as many times as an individual wants to. Although the bankruptcy laws were tightened back in 2005, you are still permitted to file for bankruptcy more than once, depending on when you filed and the type of bankruptcy. If your prior case was dismissed, there is typically a higher chance to re-file. In such situations, it is crucial to contact a knowledgeable bankruptcy attorney, as there are certain motions that must be filed in order to extend the bankruptcy protection in your current case.
Myth: Bankruptcy can destroy your credit score
Fact: This is not completely right, as your credit score might reflect at the time you file, but it will not be destroyed forever. This totally relies on son the situation and the level of your debts, which may actually increase the credit score by filing for bankruptcy. All negative activity terminates which includes interest, late fees, collection fees, and attorney fees. Ten years after filing, the bankruptcy will also be removed from your credit report, revealing a clean slate.
Myth: Personal bankruptcy will ruin your family
Fact: There may be lots of other concerns that might instigate a family problem within your members such as the brink of divorce because of your financial crisis. Any firm that sees this, keeps in consideration a lot. In some cases, you can put a stop to the family problem easily by filing for bankruptcy and getting a fresh, financial start. Although teh filing can be extremely a difficult decision of your life the absence of stress might also provide your relation with a fighting chance.
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