There is no shortage of misinformation and confusion in our society, especially surrounding things that are inherently unpleasant. No one likes to ponder on the circumstances that lead to bankruptcy, nor is it fun to consider the state of one’s financial future if bankruptcy is declared. And so, as a topic for discussion, hiring a bankruptcy lawyer is often understood through a lens of fear.
The fact of the matter is that bankruptcy is something that a great number of people will have to deal with in their lifetime at one point or another.
- 20% of bankruptcies filed in the US are by people with at least one college degree.
- Over 52% of people who file bankruptcy are male.
- 16% of all bankruptcies filed are by people who have filed at least once before.
As these figures suggest, it is difficult to pin down exactly the type of person most susceptible to bankruptcy. A person from every demographic has been recorded seeking a SLC attorney for Chapter 13 bankruptcy, and therefore every person should get acquainted with the myths about filing that keep us from making the right decisions.
The Biggest Myths
We’ve already, in a way, tackled the first big myth of bankruptcy (one that even our bullpen of Utah bankruptcy attorneys needs to remind clients about): bankruptcy (or divorce) won’t happen to me. Because bankruptcy doesn’t necessarily have “a type,” anyone is at risk. Reasons for bankruptcy are as diverse as the filers themselves.
- Only only a small percentage of bankruptcies are due to reckless spending.
- Nearly 65% of bankruptcies were due to medical expenses.
- Despite most countries reporting declining bankruptcy rates, the year 2020 saw the highest statistics for large corporate bankruptcies in the United States ever.
When people who are filing for the first time, anticipate filing for the first time, or think about bankruptcy, it is easy for them to feel overwhelmed and depressed. Knowledge is power, however, and our lawyers can help set the record straight in order for you to feel in control again.
It Takes Years for Bankruptcy to Relieve My Debts
For those who are being dogged by creditors night and day, it can feel like there is nowhere to turn for help. All too often, hiring a bankruptcy lawyer doesn’t feel like it could be helpful for people in that situation. In actuality, a firm like Rulon T. Burton & Associates can help provide near-instant relief.
- If you’re prepared to file for bankruptcy (and have the proper paperwork) one of our SLC Chapter 13 attorneys can file with the court the same day as your first consultation.
- Creditors must immediately stop all collection activities as soon as they are informed of your filing.
- Depending on the type of bankruptcy you file, you will either eliminate most of your debts or be placed on a type of payment plan to help you pay down your debts.
Bankruptcy Zeroes Out My Credit
Banks realize the detrimental effects having a low credit score can have on a person, especially one who might consider working with that bank again. Bankruptcy, at its core, is designed to help people get back on their feet and that means building back up one’s credit.
- As soon as a person discharges their debt, they will start receiving new credit card offers almost immediately.
- Credit scores can jump up to the mid-600s within months of paying down the debt.
- Bankruptcy is reportable on your credit for up to 10 years from the date you file bankruptcy, but people are able to get home loans as soon as 2 years after filing and car loans with good interest rates even faster.
If I File Bankruptcy, I’ll Lose Everything I Own
Even those with extreme debt have rights and many of their possessions are protected by the law — they won’t be seized by the government or your creditors against your will. Chapter 7 can risk possessions in some cases, but a Chapter 13 filed with an SLC attorney from our office can protect those possessions.
- Exempt assets cover essential items a person needs to live.
- One car, a house, clothes, and gear used for your job have exemptions but they have limits.
- Luxury items such as a second house or a boat are non-exempt.
Bankruptcy can certainly be a hard pill to swallow — it requires a change in one’s lifestyle and forcing oneself to part with things that can be very dear to them. Having a great bankruptcy lawyer by your side can make all the difference in the world. Learn more about how Rulon T. Burton & Associates can help you by giving us a call today.