As end of the year bills come due, debts grow and stress levels increase, many people may consider filing for bankruptcy but feel dissuaded by misconceptions. These misconceptions are not by accident. Many lenders actually try to put information out there (especially on the internet) to cause confusion and increase fears about bankruptcy.
To help you sort through all of the information, here are 3 bankruptcy myths to be aware of this holiday season:
1. “You’ll lose all or most of your assets in bankruptcy.” – NOT TRUE. Why? Because most debtors don’t have much in the way of assets to lose to begin with. Also, if you’re working with an experienced bankruptcy lawyer, there are a number of assets and life necessities that you will be able to keep under the bankruptcy laws.
2. “Say goodbye to your retirement account.” – NOT TRUE. Retirement accounts are actually well protected by the bankruptcy laws. Creditors can’t touch your retirement accounts. Event he payments you receive from them once you’re retired. As a corollary, it’s generally a bad idea to take money out of your retirement account to pay off debt.
3. “You don’t meet the debt limit to file for bankruptcy.” – NOT TRUE. There is no debt minimum to required to file for bankruptcy. You can file for bankruptcy with any debt amount. Another falsehood spread by creditors to scare people away from bankruptcy. What is an appropriate debt level that makes it worth it to file for bankruptcy? That’s a question for an experienced bankruptcy lawyer to handle.
Please contact an experienced Haines & Krieger bankruptcy attorney at 702-880-5554 for a free initial consultation where you can ask questions and get answers.