Anyone who’s ever had crippling debt understands the burden that comes with it. Despite making a good living, each month can feel like another uphill battle trying to pay the bills and make ends meet as you have lenders to pay. Fortunately, there’s a way out. You can get help from a bankruptcy attorney in Knoxville.
There is a stigma attached to filing for bankruptcy that is unfortunately perpetuated by several myths. At DZ Law, we know what it really means to file for bankruptcy so we want to help by debunking some of these myths that surround the process.
Married couples must file together
Debt liability can be somewhat of a gray area when it comes to married couples. While you often have joint finances with the way you do your taxes and manage your income, debt can be an individual liability. This can include credit cards that were opened and student loans that were accrued before marriage. If these are the debts that you’re filing for, then no, the married couple does not need to file together. However, if you have acquired debt together, it’s required that you both file or the creditors could require the spouse who didn’t file to pay the debt in full.
Your credit will never recover
Your credit can recover after filing for bankruptcy. Is it a long road? Yes, it is. Although, your credit score can improve just during the time that it takes you to complete the filing process. The freedom from debt and the ability to more easily manage your finances can be a much more liberating feeling than what comes with trying to keep your head above water. With more financial security, you’ll be able to build your credit score once again.
Bankruptcy discharges all your debt
It’s common to come into bankruptcy proceedings with the hope of coming out on the other side completely free of debt with a new start. While some of your unsecured debts like credit cards, utility bills, and others are likely to be discharged, not all of the debt that you’ve accumulated will be discharged or forgiven. Instead, you’ll likely be given a plan where you can repay your debts at a more affordable rate or negotiate a lower payoff amount.
You’re irresponsible if you file for bankruptcy
Not everyone who files for bankruptcy is irresponsible with their finances. Are there times when bankruptcy is the result of irresponsible spending? Of course, there are. But bad things do happen to good people, which means that sometimes it is a result of losing a job, a business going under, or another unfortunate circumstance that’s out of your control. We understand this and are willing to help either way.
Filing for bankruptcy is difficult
When you’re filing for bankruptcy on your own, it can be difficult and confusing. With the help of an expert like a bankruptcy attorney, you’ll have somebody walking you through the entire process to ensure that you follow all the steps that are necessary to get the relief that you need.
You can never get a loan again
This one couldn’t be farther from the truth. There are thousands of people each year who secure a home loan, auto loan, or even a business loan after they’ve filed for bankruptcy. Lenders might be a little more cautious working with someone who’s filed for bankruptcy and will want a background into the circumstances, but it isn’t something that becomes unattainable.
Get the full truth with DZ Law
If you need debt relief with the help of a bankruptcy attorney in Knoxville, get in touch with our team at DZ Law. We can help to put your mind at ease and provide you with the assistance you need while going through the bankruptcy process. You can reach our office at 865-259-0020 or send a message using our contact form.