To make an informed decision about whether bankruptcy is right for you, you should get all the information you can about the process by contacting Elcox & Salazar.
Here are some common misconceptions about bankruptcy that you might hear people say – along with what’s really true:
You’ll lose everything if you file for bankruptcy. Bankruptcy laws allow debtors to keep certain exempt property, which means they won’t have to sell all their belongings in order to pay their debt. Examples of exempt property include household furniture and appliances, clothing, tools of your trade (your car, computer, and equipment), child support up to a certain amount, and public assistance payments.
Filing for bankruptcy will ruin your credit score forever. It’s true that filing for bankruptcy will hurt your financial health in the short term by causing your credit score to drop by as many as 200 points. But over time, your score will start to recover – especially if you start taking steps to rebuild your credit history.
You can’t file for bankruptcy more than once. Bankruptcy laws allow debtors to file for bankruptcy multiple times throughout their lives. However, each filing will have a negative impact on your credit score and make it more difficult to borrow money in the future.
Bankruptcy is a powerful tool that can provide debt relief to those who are struggling. It’s not cheap: filing for bankruptcy costs at least $1,000 in legal fees plus other expenses like court filing fees and trustee payments. But it might be worth the cost if it will make your financial situation more manageable going forward.
If you have further questions about bankruptcy or would like to discuss legal options, call us for a free consultation today at (208) 603-4412.
Elcox & Salazar Law Firm handles bankruptcy and debt defense litigation cases in the United States.
NOTICE: We recommend that you get professional legal advice specific to your case. The information provided is not intended to supplement legal advice.