Bankruptcy Myths and Facts

Bankruptcy is a concept that is frightening to most Americans. However, bankruptcy is in fact a legal process that can help businesses and individuals deal with serious financial problems. If you find yourself in such a situation, you should consider seeking the assistance of a Henrico bankruptcy attorney at the law firm of Canfield Wells LLP. It is also important for everyone to understand these myths about bankruptcy law:

You Will Lose Everything You Own
The initial filing of bankruptcy will initiate an automatic stay designed to protect you from your creditors. A Chapter 7 procedure will delay foreclosure activities, giving you time to take further action, and a Chapter 13 will allow you to keep all of your assets. Virginia allows personal exemptions for such items as vehicles, furniture and retirement plans. Those in debt can learn more about these rules with the assistance of bankruptcy lawyers in Hopewell VA.

This Will Destroy Your Credit
Since most of those who are heavily in debt already have bad credit, a bankruptcy filing can actually help them over the long term. A Chapter 7 procedure will be erased from one’s credit report in 10 years and a Chapter 13 filing in only seven years. The erasure of your debt will improve your credit status, giving you the opportunity to rebuild it after completion of the bankruptcy. You should turn to the services of a Henrico bankruptcy attorney to help you recover from your financial predicament.

You Can Take the Action Yourself
Although bankruptcy filings can be done without legal representation, such cases are usually unsuccessful. This is reason enough for those in debt to seek help from bankruptcy lawyers in Hopewell VA. If you are facing serious debt, consider a free and confidential consultation with the law firm of Canfield Wells LLP.