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Do not let common misconceptions prevent a Chapter 7 bankruptcy

On Behalf of | Apr 15, 2016 | Chapter 7 Bankruptcy, Firm News

Florida residents who are struggling to get by and unable to pay their debts might begin their search for debt relief online. Numerous sites proclaim that certain misconceptions about Chapter 7 bankruptcy are true seemingly in an attempt to promote a debt relief product. However, the majority of the misconceptions proffered are not true.

For instance, people are often told that they will never be able to obtain credit again after filing or that they will be unable to get a mortgage or buy a car. This is not necessarily true. It might take some time, but after a discharge, the possibilities to obtain credit will only increase as time goes by.

Florida residents might also be under the impression that they will have to surrender their assets to the court to pay their creditors. The truth is that most filers retain most — if not all — of their property. The U.S. Bankruptcy Code and Florida law allow for certain property to be exempted from sale.

Another misconception is that there is a limit to how much debt a filer can have in order to file bankruptcy under Chapter 7. In reality, it is the amount of debt related to income that determines what chapter an individual might file. There are more than likely other myths surrounding bankruptcy that are keeping some people from utilizing it in order to find relief from their debt.

Filing for Chapter 7 bankruptcy can give a filer a clean slate with which to start over financially. In order to receive a fresh start, however, certain documentation requirements and deadlines must be met in order to receive a discharge. Therefore, it would be beneficial to consult with a a bankruptcy attorney to help ensure that everything is done properly and on time.

Source:, “Chapter 7, Fact vs Fiction“, Zalutsky & Pinski, March 31, 2016

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