If you’ve hit an economic wall, deciding to file for bankruptcy comes with a lot of baggage. After you tackle the logistics of your case—hiring a lawyer, completing the paperwork and outlining your plan of action—you’re barraged with emotional consequences and doubts. Did I just do the right thing? How will this affect my life? Will I be able to recover? Before you drive yourself crazy, it’s good to familiarize yourself with the actualities of bankruptcy, as opposed to financial folklore. So, rest a little easier. Read the next three points provided by The CPA Journal to discover some of the common misunderstandings associated with bankruptcy.
1. You can be fired for filing a bankruptcy
This is far from the truth. An employer cannot fire you for going bankrupt. The federal government protects you from this type of discrimination, and you are entitled to sue your place of work if you feel bankruptcy was the reason for your release. If this happens to you, and you choose to file legal action against your employer, he/she must provide legitimate reasons for your dismissal.
2. Only “broke” people can file for bankruptcy
To qualify for bankruptcy, you must owe enough money that you do not have the funds to pay for your bills as they come in. Thus, even with a steady income, filing for bankruptcy is a viable option. Also, when filing for bankruptcy, a debtor is usually allowed to keep some of their property for financial sustainability. The properties you are allowed to keep once you are bankrupt depends on the type of bankruptcy you file and the state you file in.
3. Filing for bankruptcy means you cannot buy a house in the future
The interest on the loans for a house may be a little higher, but filing for bankruptcy does not bar you from purchasing a home. Lenders may still be willing to work with you if you can provide the equity for a down payment and show proof that you are capable of keeping up with the subsequent bills.
Don’t let filing for bankruptcy stress you out more than necessary. Consult with a lawyer like Anthony Deluca and learn about your case to facilitate the process and minimize any potential harm to your lifestyle. To find a bankruptcy lawyer in Las Vegas and learn more about your options, call Deluca & Associates at (702) 252-4673.