Misconceptions Associated with Filing Bankruptcy

by | Aug 28, 2019 | Bankruptcy Law

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There are many misconceptions when people think about the option to file bankruptcy or not. By seeking the assistance from reputable Las Vegas, NV bankruptcy attorneys, customers will clearly understand the misconceptions and be able to view bankruptcy in a new way.

Some of the misconceptions of bankruptcy include:

A person must be broke in order to file bankruptcy. This is not an accurate statement. A person does not need to be broke in order to file. A person needs to simple prove they are unable to pay back any debts incurred.

A person who files for bankruptcy will not be able to get credit in the future. This is also a false statement. An individual is able to get credit in an effort to fix their credit with future satisfactory payment history.

A person who files will not be able to buy a home in the future. Although an individual who files bankruptcy must wait at least 2 years before a mortgage lender will consider granting a loan, filing bankruptcy does not hinder a person from ever owning a home.

A homeowner who files will lose his/her home. There are several steps that need to be taken in order for a homeowner to keep their home when filing bankruptcy, however, it is not mandatory that a homeowner will lose their home.

Taxes will not be discharged in bankruptcy. If taxes are part of the bankruptcy claim they can be discharged in the bankruptcy.

Student Loans are not dischargeable. Although generally this is the case there are special circumstances that would allow student loans to be dischargeable, with the help of an attorney.

A person will lose his/her job if they file bankrupcty. This statement is entirely false. A person filing bankruptcy has no adverse affect on their employment. It is also illegal for an employer to consider termination of an employee simply on the grounds of the person filing bankruptcy.

When considering filing bankruptcy in Las Vegas, NV it is vital to contact a bankrupcty attorney to discuss all of the case’s options and decide which direction to take. An attorney will be able to assist their client in all steps of a bankruptcy!

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