New York Attorney Explains Bankruptcy Myths
UPDATED: March 9, 2020
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Filing for bankruptcy is the exercise of a federal constitutional right, according to one New York lawyer who says that not only do you have a right to file bankruptcy, but that bankruptcy helps society to renew itself and is a necessary safety valve for individuals and corporations. While it may be a right, there are some common myths about bankruptcy that debtors have a hard time believing. Here are the top three:
NY Attorney Elliot Schlissel
Elliot Schlissel, a New York bankruptcy attorney, says these are the top three most common myths about bankruptcy:
- You'll never get credit again. This is the most common myth and it is absolutely false. In fact, it is generally morebeneficial for someone who’s behind on their bills and has a low credit score to file bankruptcy, get a clean slate and start all over again. In the same vain, you will be able to get a good job again – regardless of filing for bankruptcy.
- Something bad will happen to you. Many people feel that something bad will happen to them such as they’ll go to jail or all of their assets will be taken away. Bankruptcy is designed to help people, not to hurt people. Anyone with questions should consult with a qualified bankruptcy attorney. Most bankruptcy attorneys will give them a free consultation – and the process is not painful. The attorney does the paperwork. The client just produces the documentation and information for the lawyer.
- There's an overall stigma to filing for bankruptcy in New York. There’s absolutely no stigma attached to filing for bankruptcy. Millions of people file for bankruptcy every year. Generally speaking, the people who file and use a good bankruptcy attorney will have better credit within six months to a year. They can then buy houses, lease cars and obtain credit cards. There’s just no stigma attached to it.