Bankruptcy Facts You Need to Know
Some people may hesitate to pursue bankruptcy as an option because of the negative social stigma attached to its name. We encourage you to get accurate information concerning the benefits of bankruptcy and to consult with an experienced attorney who can evaluate whether bankruptcy is suitable for your unique circumstances.
Here some common misconceptions about bankruptcy:
Bankruptcy robs you of all of your property and prevents you from acquiring property in the future
Federal and state laws allow bankruptcy filers to keep property specified as "exempt." This may include your house, your car and personal possessions up to a certain value. Furthermore, a number of creditors and lending institutions may extend you credit shortly after the close of your bankruptcy case.
Retirement accounts get lost in the bankruptcy process
Special exemptions protect most funds held in pension plans under ERISA, and IRAs up to certain limitations.
Bankruptcy requires lengthy court proceedings
Bankruptcy petitioners typically attend only a brief proceeding called the meeting of creditors. During this process, you meet with the bankruptcy trustee to discuss your petition while you are under oath. Chapter 13 petitioners may attend a hearing to review your proposed reorganization plan. Sometimes complications arise in your case that require a bankruptcy judge to step in.
All of your debts can be eliminated through bankruptcy
Bankruptcy offers an excellent solution for many debtors — however, not all debts qualify for bankruptcy relief.
These and other misconceptions can cloud your decision when contemplating bankruptcy. Speak to a qualified Orange County debt relief attorney who can bring clarity to your bankruptcy-related questions. Contact the Fishback Law Corp for more information.