Dispelling Bankruptcy Myths and Misconceptions
Myths about bankruptcy have existed since the original laws were enacted. The changes in 2005 only added to the misconceptions. At Krigel & Krigel, P.C., our job is to dispel the misinformation that prevents many clients from filing.
Do not believe everything you read or hear about bankruptcy. Get the facts from a seasoned attorney who knows the law. Contact us at 816-756-5800 or toll free at 866-245-8887.
You Can Still Qualify for Chapter 7 Bankruptcy
In 2005, commercials aired from aggressive bankruptcy attorneys pleading to anyone within earshot to file for bankruptcy immediately while the laws would allow it. While there were changes, the new laws only added steps to the process. A means test has been added to the analysis of whether a debtor will qualify for a Chapter 7 bankruptcy. While serving as an obstacle to some, we find that most of our clients still qualify for Chapter 7 protection.
You Can Still Protect Your Assets
At Krigel & Krigel, P.C., our bankruptcy attorneys strive to dispel another myth that involves the assets that can be protected. In a Chapter 7 filing, you can reaffirm your mortgage and car loan. Continued payments will allow you to keep those valued assets. In a Chapter 13 filing, you can bring your payments current over a period of 36 to 60 months as a general rule so long as you make your payments on your car and home you can keep them.
IRAs 401Ks and other retirement accounts are protected from creditors with a few exceptions. It often happens that debtors will withdraw from their retirement accounts in a well meaning effort to avoid bankruptcy. Contact us before you take the step to discuss whether it really makes sense to use an asset that would be protected in bankruptcy and available for later use.
Many Taxes Can Be Discharged
Owing the IRS and other government tax entities can bring overwhelming stress. However, some taxes can be discharged in bankruptcy. On your behalf, we will contact the tax authorities to ensure that we are working within the law in regards to wiping out or reorganizing your tax burden.
Contact Us
There are many other examples of bankruptcy myths. Many that prevent area residents from coming to us. Contact an experienced bankruptcy lawyer who will help dispel those misconceptions and allow you to make a decision based on the facts.
