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Misconceptions New Jersey residents have about filing bankruptcy

| Dec 24, 2014 | Personal Bankruptcy |

Every day, New Jersey residents struggle to make ends meet and pay their bills. Yet, many of them do not think about filing bankruptcy because they have misconceptions about the process and may fear what it means for their futures. Some people even think that filing means they are not trying hard enough to pay their bills.

In most cases, people end up with an overwhelming amount of debt due to a catastrophic event such as a medical event, divorce or a job loss. Here in New Jersey, Superstorm Sandy caused many people to lose everything. Bankruptcy is there to protect you from the financial devastation that follows these types of life events.

Another misconception about bankruptcy is that once you file, you will never be able to obtain credit again. There could have been a time when that was true, but it is not true any longer. Creditors will consider how long it has been since the bankruptcy was discharged and how you have handled your finances since when deciding whether to extend credit to you. Also, it should be noted that not being able to pay your bills can lead to court judgments, foreclosures and repossessions, among other things — all of which damage your credit while you still struggle with the same debts.

Discussing your situation with an attorney could dispel some of the myths surrounding bankruptcy. Most filers get to keep all of their property, discharge most — if not all — of their debts and get a new financial start. For more information about what bankruptcy can do for you, visit our website.

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