New York Law Firm Busts Bankruptcy Myths

Henrietta, New York Bankruptcy Attorney Provides Competent Advice

While many people assume that filing bankruptcy is an admission that someone could not successfully manage their money, this is not necessarily the case. Talk to a bankruptcy law firm for answers to your questions about bankruptcy today.

Five common myths about bankruptcy include:

Those who file for bankruptcy are financially irresponsible.

Sometimes this is true. However, the majority of people who file bankruptcy have run into financial problems that are beyond their control, such as losing their job, going through a divorce, or suffering a serious illness.

Bankruptcy will not eliminate past due income taxes.

Most people assume that Federal and State income taxes are never dischargeable. In fact, even income taxes can be dischargeable depending on how long ago they became due. Call our office to discuss whether your past due taxes can be discharged in Bankruptcy.

If you spend a lot of money right before you file for bankruptcy, you won’t have to pay that debt back.

Some people assume that if they run up their credit cards before filing bankruptcy, they’ll be able to discharge those debts in bankruptcy and keep the merchandise. However, courts have ruled that this practice is fraud, and debt that’s incurred as a result of fraud is not dischargeable in bankruptcy.

If you file bankruptcy, your credit is ruined – forever.

People who file bankruptcy are often surprised by how quickly they’ll begin to get credit card offers in the mail again. Bankruptcy experts typically recommend that those coming out of bankruptcy get a secured credit card and start making regular, on-time payments to rebuild their credit.

Bankruptcy will solve all your financial problems.

Although bankruptcy discharges most unsecured debt, it will not discharge student loans, child support or spousal maintenance, recent income taxes, or any sales taxes. Filing for bankruptcy usually requires the assistance of an Attorney and the payment of Attorneys fees and court filing fees. It does provide a fresh start and will typically put you in a position where you can successfully payback the remaining debt. By doing so you will often rebuild your credit sooner.

Contact a New York Bankruptcy Law Firm Today

If you find bankruptcy confusing and difficult to understand, bankruptcy attorney Robert A. Schwartz will review your financial situation and give you solid advice. Contact our firm online or call call [custom:phone] to schedule your free initial consultation today with an experienced Monroe County bankruptcy attorney today.