Bankruptcy lawyers are often seen as the bad guys – they help debtors escape their responsibilities and dodge creditors. But there’s more to bankruptcy than meets the eye. In fact, there are a number of myths about bankruptcy attorneys that can lead people astray when it comes to understanding how these professionals help individuals facing financial distress. From misconceptions about fees to assumptions about what types of clients hire them, here are seven common myths about bankruptcy lawyers debunked so you can make an informed decision if you ever need one.
Myth 1: Bankruptcy Lawyers are Incompetent – You Don’t Need One
Many people assume that bankruptcy is a simple process, and therefore believe lawyers aren’t necessary. However, filing for bankruptcy requires understanding of the law and its implications for your financial future. A competent bankruptcy lawyer can help you navigate the complexities of the system, advise you on which type of bankruptcy best fits your needs (Chapter 7 or Chapter 13), apply exemptions to preserve as much as possible from creditors, and more.
Myth 2: Bankruptcy Attorneys are Expensive – They Aren’t Worth It
While it’s true that some attorneys may charge high fees for their services, this isn’t always the case. There are a variety of reputable, experienced bankruptcy attorneys who offer competitive rates for their services. Be sure to do your research and shop around – you may be able to find an attorney who fits your budget.
Myth 3: Bankruptcy Lawyers Only Work with Deadbeat Clients
It’s true that some individuals filing for bankruptcy are irresponsible and have overspent beyond their means. However, there are many other reasons why someone may need help from a bankruptcy attorney. Whether due to job loss or medical bills, many people find themselves in difficult financial situations through no fault of their own. A quality bankruptcy lawyer will understand these circumstances and work with clients accordingly.
Myth 4: Filing Bankruptcy is the Easy Way Out
Many assume that filing for bankruptcy is an easy way to get out of debt. While it can provide relief and a fresh start, there are many other factors to consider. The decision to file should not be taken lightly – it will have long-term implications on your finances, credit, and asset protection. A skilled attorney can help you weigh the pros and cons of filing so you make the best decision for your situation.
Myth 5: Filing for Bankruptcy Will Destroy Your Credit:
This is false. In fact, filing for bankruptcy may help your credit score in the long run by getting rid of debt that has been weighing you down and giving you a fresh start to rebuild your credit. While there will be some initial damage to your credit, it can be rebuilt over time. It’s important to note that not all types of bankruptcy will impact your credit in the same way – consult with an experienced bankruptcy lawyer to determine which type of bankruptcy is right for you and what kind of impact it will have on your credit.
Myth 6: You Have To Give Up All Of Your Possessions To File For Bankruptcy:
Depending on which type of bankruptcy you file for, you may have to give up some of your possessions. However, most states allow exemptions for certain types of assets such as necessary household items and other necessities. An experienced bankruptcy lawyer can help you determine which assets are exempt from your bankruptcy filing and which ones may need to be liquidated in order to pay back creditors.
Myth 7: It’s Too Expensive To Hire A Bankruptcy Lawyer:
The cost of hiring a bankruptcy lawyer depends on the type and complexity of your case. Before you hire a bankruptcy lawyer, check reviews of chang & diamond bankruptcy lawyer group in California. Most lawyers offer free consultations so that you can discuss your options with an expert before making any decisions. It is important to note that it is almost always worth it to hire a qualified attorney as they will be able to advise you on the best way to protect your interests and ensure a successful outcome.
Bankruptcy lawyers are more than just debt-dodging professionals – they can be a valuable resource for individuals facing difficult financial situations. By understanding these seven common myths, you can make informed decisions when it comes to selecting an attorney or filing for bankruptcy. It’s important to do your research and find an experienced professional who will work with you to get the best outcomes possible.
