Several Bankruptcy Protection Myths

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When you find yourself facing a significant tax burden, it can be tough to know where to start to pay it down. Unfortunately, the government may not wait for you to sort it out. If you find yourself served with a legal notice for repayment, you need to talk with an attorney right away. A tax law attorney can help you evaluate the situation and potentially file for a reconsideration. If nothing else, he or she will talk with you about your legal options for repayment and what the government can and cannot do. This site will help you see what my experience has been so you can understand some of the options you may want to consider.


Several Bankruptcy Protection Myths

17 February 2018
 Categories: Law, Blog

When a person is experiencing financial difficulties, they may struggle with devising a strategy for overcoming this debt. In some instances, the debts may simply be too high for the debtor to pay. In these situations, bankruptcy may be the best option for finding relief from these debts.

Myth: A Chapter 7 Filing Will Result In The Loss Of All Of Your Assets

Chapter 7 bankruptcy is often considered one of the more extreme solutions to this problem as it will open the applicant's assets up to liquidation. This can lead some people to simply assume that this type of bankruptcy will always result in them losing all of their assets. However, it is possible to shield some assets for this process. This will help to ensure that a person has the tools and resources they need to start fresh. Prior to filing for this type of protection, you will want to eat with a bankruptcy attorney so that you can better utilize your possessions that will be eligible for collection.

Myth: It Is Embarrassing To File For Bankruptcy

Encountering financial difficulty can be stressful and embarrassing for many people. Fears of public humiliation for filing for bankruptcy protection can lead some people to avoid taking advantage of this option. However, it is a reality that most individuals will find the process of filing for bankruptcy to be fairly discrete. While there will be a public record of these proceedings, it is unlikely that anyone you know will be aware of these proceedings unless you tell them. By keeping this in mind, you will be better positioned for taking advantage of this type of filing so that you can start the process of moving forward with your life.

Myth: Bankruptcy Only Involves Filing Documents With The Court

Another assumption that people will often have about bankruptcy is that it only involves filing documents with the courts. While document preparation and fillings can be essential to this process, there are any other steps that may be involved. For example, it is common for there to be mediated negotiations between the debtor and the creditors. Also, many states will require individuals to undergo credit counseling so that they can better avoid the need to file for bankruptcy again in the future. Working with an attorney that is experienced with chapter 7 bankruptcy filing services and proceedings can be helpful in terms of ensuring you know what to expect from each step in this process.