Everyone will come to know when you file for bankruptcy
Though filing for bankruptcy is a matter of public record, there are very slim chances that anyone will know about your case, accidentally. Until and unless you tell somebody or people specifically pursue to know about your financial situation, no one will get to know that you have filed for bankruptcy (insolvency). So, no one except you and your creditor (s) knows about it.
You will lose all your possessions
As far as bankruptcy and exemptions are concerned, different states have different laws. However, the bottom line is – you are allowed to get some exemptions for protecting your property when you file for insolvency. So, you do not lose everything you have. There are some cases where debtors own more than they can protect with exemptions. So, they are recommended to file for Chapter 13. Still, no one will take away all your possessions.
You will not be able to own a property
Filing for insolvency does not mean that you cannot buy a property in the future.
You will not be able to get credit in the future
The reality is just opposite. Filing for insolvency allows you to get rid of your debts. This helps you in rebuilding your credits.
If you are married, both you and your wife (husband) have to file for insolvency
It is not always necessary for married couples to file for insolvency together. It is optional and not mandatory.
Process of filing for bankruptcy is quite tough
The process of filing for insolvency is not very difficult, provided you have an expert bankruptcy lawyer by your side. The main reason behind it – bankruptcy lawyer are familiar about each and every aspect of such cases.
Bad people file for insolvency
Here comes another misconception about insolvency. There are plenty of Americans who file for this claim every year. In fact bankruptcy laws are specifically made to help the people who are honest, hard-working and overwhelmed with mounting debts. So, people filing for it are not bad.
You can file for bankruptcy once
This is another misconception about it. This is because when it comes to Chapter 7, you can file it after 8 years of your previous filing. And for Chapter 13 this restriction is even less.
Now, when all your doubts regarding bankruptcy are clear – do not delay and hire a bankruptcy lawyer. Lancaster, CA has a number of law firms where you will find many such legal professionals.