The Truth About Bankruptcy
Business and Consumer Bankruptcy Attorneys — Boston, Massachusetts
Thanks in large part to credit card lobbyists, and a general lack of understanding of the bankruptcy process, bankruptcy misconceptions are more common than they should be — even among highly educated and otherwise well-informed groups of people.
At the Law Offices of Richard N. Gottlieb, we're striving to change that by dispelling bankruptcy misconceptions with truth and by providing real help to clients throughout the Commonwealth of Massachusetts. Because filing for personal bankruptcy under Chapter 7 or Chapter 13, or as a business under Chapter 11, is not something you should take lightly — having an accurate knowledge of the facts is where the process should begin.
Have you ever thought to yourself …
"If I file for personal bankruptcy I'll lose everything I have."
Not true. Although antibankruptcy advocates might like to see you start over with nothing but the clothes on your back, the U.S. Bankruptcy Code does not. These laws allow people to have a meaningful fresh start after filing for personal bankruptcy. In addition to provisions allowing people to keep their homes and vehicles, federal and Massachusetts laws list numerous exemptions that can be claimed for personal property. The truth is that most peoples keep most of what they have.
"Filing for bankruptcy just isn't right; it's the easy way out."
Actually, filing for bankruptcy is neither easy nor wrong. Most people file after experiencing something beyond their control, such a job loss or sudden illness. Bankruptcy law is also very complex and while you can "do it yourself," so to speak — mistakes can quickly wipe out everything you saved by not hiring a lawyer, and then some. It is also a more honest thing to do than continuing to pretend you can manage your debt while continually falling further behind.
"You can only file for bankruptcy once; I'll wait until I really need it."
The discharge has the legal effect of eliminating your personal responsibility to pay the debts that are incurred before the date of the commencement of the bankruptcy filing. Discharge, by itself, does not eliminate liens, but eliminates the liability for the debts that underlie those liens. The truth is that you can obtain a discharge under Chapter 7 once every eight years. You can file for Chapter 13 more often but cannot obtain a Chapter 13 discharge within four years of a previous Chapter 7.
"My credit will be ruined. I'll be unable to buy a house or car again."
Filing for bankruptcy does have its downsides. Your credit rating will be damaged for some time. However, damaged does not mean the same thing as ruined. Over time, through careful budgeting and management of your financial resources, your credit will improve and you will be able to purchase what you want sooner than you think.
Help is Here. Hope is Here.
Call 617-830-1389 for a Free, "Debt-Free" Consultation
To learn about other bankruptcy misconceptions and about how our lawyers can help you get out of debt and get a start fresh — call or contact us online for a free initial consultation with a lawyer. Office hours: Monday through Friday from 9 a.m. to 5 p.m. and by appointment. Cancellations and reschedules require a 24-hour notice or a $25 fee will apply.
