Truths and Myths about Bankruptcy in Riverside

Each bankruptcy case in Riverside County is different. Your circumstances may not be the same as another individual who has filed for bankruptcy in the last year, the last month, or even the last week. It's important to realize that while there are plenty of preconceived ideas about bankruptcy and the process in general, the truth is often less frightening than the reality of living with an insurmountable debt.

Listed below are some common misconceptions about bankruptcy, the bankruptcy process, along with the reality of bankruptcy law and procedures in general. While this cannot take the place of a thorough evaluation given by a qualified Riverside County Bankruptcy Lawyer, keeping these truths in mind may help you to consider bankruptcy in a more realistic light as you consider your options.

Myth: If I file for bankruptcy, I could lose my job.

Fact: Filing for bankruptcy cannot cause you to lose your job. There are federal laws in place that forbid firing an employee who seeks financial relief through bankruptcy. Bankruptcy can actually help you with regards to job performance - after all, you won't have the stress of unpaid bills to worry about, and you can actually focus on your job. Also, if you've been getting collection calls at your place of employment, filing for bankruptcy will stop all collection activity, including those dreaded phone calls at work.

Myth: I won't be able to get new credit if I file for bankruptcy.

Fact: If you need to file for bankruptcy, then you likely would not be able to get new credit in your current condition, regardless as to whether you actually file. The truth is, bankruptcy can discharge your debts, offering you a chance to rebuild your credit history and qualify for credit down the line. You may be surprised at the number of credit offers that will come your way after bankruptcy - because you can't file again for 8 years, many credit card companies see individuals with a recently discharged bankruptcy as prime customers. Be forewarned, however - racking up credit card debt after a bankruptcy has been discharged can cause more damage to your credit than filing for bankruptcy.

Myth: If I file for Chapter 7 bankruptcy, I'll still have to pay back all my creditors.

Fact: If you file for Chapter 7, most kinds of debt will be discharged, meaning that you will not have to pay those creditors again. While there are certain debts that cannot be discharged with a Chapter 7 bankruptcy, such as child support payments and student loans, the majority of most unsecured debt will not have to be paid back. If you have concerns about your current situation, you should contact a skilled Riverside County Bankruptcy Attorney to discuss your circumstances and get a comprehensive evaluation.

Myth: If I don't pay my debts, I'll go to jail.

Fact: Unless your debt is related to willful tax evasion, tax fraud, or criminal activity, you will not go to jail as a result of being in debt. Even if you are sued and a judgment is obtained against you, you will not have to serve time in jail for ordinary debt.

Myth: If I file for bankruptcy, it will be published in the papers/everyone will know.

Fact: Unless your bankruptcy is a business bankruptcy, the only place your bankruptcy will be recorded is in the court's own records. While these records are public, an individual would have to go to the trouble of searching for your bankruptcy record - it won't be published in the papers.

Chances are good that you've heard of at least one of these myths, and they may be all that's standing between you and financial relief through bankruptcy. If you have other concerns, or your situation is particularly complicated, you owe it to yourself to discuss the issue with an experienced Riverside County Bankruptcy Attorney who can help you with your legal needs. Our firm has represented clients throughout Riverside County in all matters of Bankruptcy Law. We are available for consultation if you have questions, and we are always glad to assist in any way we can. Break free of the myths and discover the facts about how bankruptcy can help you during your free case evaluation.