Many people understand the general concept of bankruptcy but may not be familiar with the specifics of bankruptcy law. A bankruptcy attorney can answer any questions about bankruptcy and how the laws may affect you. The following article explores several common misconceptions about bankruptcy and provides an overview of the corresponding facts:
You Have a Choice Between Chapters
Consumers used to have a choice between filing for Chapter 7 or 13 bankruptcy. Since 2005, however, consumers must qualify to file for Chapter 7 bankruptcy by meeting a means test, which compares your income to the median income in your state. If you are not able to satisfy this test, you will only be eligible to file for Chapter 13 bankruptcy.
All Credit Card Debt Can be Discharged
In many cases, all credit card debt will be indeed discharged under Chapter 7 bankruptcy. However, debt that is incurred because of demonstrable fraud or maliciousness, such as an expensive last-minute shopping spree, may not be discharged.
It Is Easy to File Yourself
Some people think that they can easily file for bankruptcy themselves, without the help of an experienced attorney. The truth is that bankruptcy law is complex and the rules are rigid. The court will look at every source of income, all of your debts, any recent gifts you have made, and more. Having a qualified bankruptcy lawyer on your side makes the bankruptcy process much more manageable and less intimidating.