While bankruptcy is not as stigmatized as it once was, there are a lot of misconceptions about what bankruptcy can and cannot do for people. To clear up some of the misinformation out there, below are the facts behind common bankruptcy myths.
The Facts about Colorado Bankruptcy
Myth 1 – I’m going to lose my house if I file for bankruptcy.
The fact is that you may be able to keep your home by filing for bankruptcy. Depending on the value of your home, Colorado homestead bankruptcy exemptions may let you retain your home through your bankruptcy case.
Additionally, if you have been threatened with foreclosure because of your debt issues, then filing for bankruptcy may be the only way to try to keep your home.
Myth 2 – Filing for bankruptcy will permanently ruin my credit.
Not true! Although bankruptcy will impact people’s credit:
- Those who are struggling with debt may not have the best credit to begin with.
- Bankruptcy will fall of a credit report within 7 to 10 years of a case.
- Following a bankruptcy case, there are a number of things people can do to get their credit back on the upswing.
So, don’t let this myth prevent you from considering bankruptcy if you are overwhelmed by debt.
Myth 3 – Bankruptcy will eliminate all of my debts.
This is not necessarily true, as bankruptcy can eliminate certain debts, but it will NOT eliminate others. In fact, the debts that are not dischargeable via bankruptcy include certain tax debts, alimony or child support debts and restitution. If these are among the debts you have, then bankruptcy will not eliminate all of your debt. It can, however, resolve other debt (like credit card debt), which may make it easier for you to repay the nondischargable debt following bankruptcy.
Myth 4 – I don’t need a lawyer to help me file for bankruptcy.
This is not true either, especially if you want to get through bankruptcy favorably and retain as much of your assets as possible through the process. The bottom line is that an attorney can help you take advantage of all possible bankruptcy exemptions while guiding you through the process. This can help you avoid common bankruptcy mistakes that may prevent you from getting certain debts discharged.
Denver Bankruptcy Attorney Jon B. Clarke Can Help You
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact trusted Denver Bankruptcy Attorney Jon B. Clarke for experienced help pursuing your best debt relief option.
To get answers from an experienced and esteemed lawyer, contact us today. We encourage you to complete our Business or Consumer Debtor Analysis Form. You can also get answers from Denver Bankruptcy Attorney Jon B. Clarke by calling our firm at (866) 916-3950 or by emailing us using the contact form on this page.
From our offices based in Denver, Castle Rock and Greenwood village, we take pride in providing people throughout the state of Colorado with the highest quality debt relief legal services.