In recent months, many Virginia families have contact our office to speak to one of our skilled attorneys about how filing for bankruptcy may help them combat their mounting debt. For many Virginians, filing for bankruptcy is a great way to rid your family of crippling debt and move forward with a clean financial slate. However, bankruptcy is not right for everyone and because of the serious consequences that may follow from filing for bankruptcy, it is of the utmost importance that Virginians know all of the possible benefits and detriments of bankruptcy before deciding to file.
Continue reading for more information on the 5 things everyone should know about bankruptcy (but few do!)
- Did You Know that Bankruptcy Does Not Get Rid of All Forms Debt?
Many people have the misconception that by filing for bankruptcy they can get rid of all of their debt; no ifs, ands or buts about it. This may be the case for any given person, but the amount of debt any person can have erased in bankruptcy depends in large part on what kind of debt the person has. For instance, it is typically very, very easy to get rid of credit card debt by completing the bankruptcy process. But unfortunately, it is nearly impossible to erase any student loan debt. Additionally, alimony and child support payments also survive a bankruptcy filing.
- Did You Know that Filing for Bankruptcy Costs Money?
While it may seem counterintuitive, it actually does cost money to file for bankruptcy. The court charges a filing fee and may charge other related court costs to people who file for bankruptcy, and an attorney will also charge a legal fee for his assistance in completing the process for you.
- Did You Know that Credit Reports Show Your Bankruptcy for 10 Years?
Many Virginians are already aware that filing bankruptcy will likely affect their credit score. However, many people do not know how long the bankruptcy will show up on their credit report. It may surprise you to learn the answer – 10 years.
Of course, it is important to bear in mind that just because a person filed for bankruptcy does not, in any way, mean that he/she will not be able to take out a mortgage or obtain a credit card for 10 years. It just means that the person’s financial stability may be more highly scrutinized by financial institutions.
- Did You Know that Bankruptcy Will Not Take Away All of Your Things?
Many Virginians mistakenly believe that filing for bankruptcy makes families lose everything – their cars, their house, their personal belongings, their family heirlooms, etc. The purpose of bankruptcy is to help you, not to punish you, so it is not the case that you will lose everything if you file for bankruptcy.
To learn more about how to keep your property during bankruptcy, as well as for further information about the process and whether it is right for you, contact our office today to speak to a knowledgeable attorney about your case. At the Callan Law Firm, P.C., we have helped many families through their difficult financial times – we look forward to working with you!
Disclaimer: The information provided on this website should not be construed as a legal advice or representation by the Callan Law Firm, P.C. Any use of this website does not establish an attorney/client relationship between the user and the Law Firm. We do not accept any professional responsibility for a case unless there is a retainer signed by both parties (Law Firm and client).