About Bankruptcy: Common Myths
Bankruptcy Lawyer for Red Bank
Filing for bankruptcy can be a complicated subject to approach. This is particularly true considering the number of myths the average person hears about bankruptcy. A Red Bank bankruptcy attorney at Law Office of Richard J. Pepsny, P.A. can offer you applicable and accurate information about bankruptcy and the other forms of debt relief that may be available to you as a debtor in Red Bank, New Jersey. We have included several common myths about bankruptcy below and welcome you to review these at your convenience to get a better understanding of bankruptcy and how it may affect you.
Myth: If I file for bankruptcy, everyone will find out and my reputation will be ruined. For most Red Bank, New Jersey debtors, the only people who will know that they filed are their creditors and anyone they tell personally. In New Jersey, bankruptcy is a public legal proceeding, but too many people file to make it worthwhile to publish a list. If a list were published, who would have the time to read through it? Unless you are a celebrity, politician or other person of note, it is highly unlikely that anyone will know you filed.
Myth: I can eliminate all of my debt through bankruptcy. Bankruptcy does not have the power to eliminate any and all debt. Generally speaking, it only discharges unsecured debt, though Red Bank debtors may be able to address past due mortgage payments and taxes in a Chapter 13 repayment plan. A Red Bank bankruptcy attorney at Law Office of Richard J. Pepsny, P.A. can help you learn more about what debt will and will not be affected if you file for bankruptcy. This can help you make the right choice for your case.
Myth: I cannot qualify for Chapter 7 bankruptcy because I earn more than the median income in New Jersey. To qualify for Chapter 7 bankruptcy, you must pass the means test. Though it is true that the first part of the means test is an evaluation of your income based on the median income level for your area, there is a second part of the test if you make more than the median in New Jersey. A bankruptcy lawyer at our Red Bank law firm can help you through the means test, helping you along to the second part of the test, which involves an analysis of you disposable income. This is determined by subtracting necessary expenses from your income. As such, even Red Bank debtors who make more than the median income level in New Jersey may still qualify under Chapter 7.
Myth: Only irresponsible debtors file for bankruptcy. Some people associate bankruptcy with irresponsibility. The truth of the matter is that the real estate market and job market have taken tremendous hits over the past several years. Debtors in Red Bank and throughout New Jersey have experienced the negative consequences of the recession. Even the most careful savers and hardest workers have lost their jobs, lost tens or hundreds of thousands of dollars of equity in their homes and have found themselves in situations where bankruptcy is the only option. Bankruptcy is nothing to be ashamed of. It is available to help debtors get a fresh start, and at Law Office of Richard J. Pepsny, P.A. we are committed to helping our clients throughout the Red Bank area rebuild to face brighter financial futures.
Myth: I can choose which debt to include in my bankruptcy petition. When you file your bankruptcy petition in Red Bank, you must include accurate information regarding all of your liabilities and assets. You cannot simply choose to exclude certain debt because you want to pay those creditors back. Your petition must include all of your creditors and all of your debt. In representing Red Bank, New Jersey debtors, our team takes care to ensure their bankruptcy petitions are properly filed, including all relevant financial information. Call us today to learn more about how Law Office of Richard J. Pepsny, P.A. can help with your filing.
We hope you found the above information helpful in gaining a better understanding of bankruptcy in Red Bank, New Jersey. If you would like to learn more, you can call Law Office of Richard J. Pepsny, P.A. at (888) 732-2137 if you are new to our firm. Existing clients, please call (732) 842-8505 and we will be happy to address your needs. Our team handles bankruptcy cases for clients in Red Bank as well as in the surrounding areas in New Jersey, including Eatontown, Fair Haven and Lincroft. We look forward to hearing from you.
Learn more about bankruptcy – contact a Red Bank bankruptcy attorney at Law Office of Richard J. Pepsny, P.A..