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Fresno County - Truths and Myths about Bankruptcy

When you are considering filing for bankruptcy in Fresno County, it is imperative that you get the facts about bankruptcy, first and foremost. Without understanding the truth of what bankruptcy is and how it can help you, you may be needlessly reluctant to take advantage of the benefits that bankruptcy can provide. Each case of Fresno County bankruptcy is unique, and your case has factors which are particular only to you. Because of this, you should always speak with a reputable Fresno County Bankruptcy attorney before you make any decisions regarding whether or not to file for bankruptcy. Listed below are some of the more common misconceptions that individuals have regarding bankruptcy, and the truth regarding those myths.

Myth: Only poor people should file for bankruptcy.

Truth: People who file for bankruptcy come from all walks of life and from many different sets of circumstances. In the current economy, bankruptcy relief may be a viable solution for many individuals, regardless of their actual income. Anyone can fall behind on credit card debt, have mounting medical bills that they cannot pay, or have concerns about wage garnishments, levies, and foreclosure. While your income may be a factor in the type of bankruptcy you file, it should not prevent you from seeking bankruptcy relief.

Myth: If I file for bankruptcy, I could lose my job.

Fact: It is against the law for your employer to fire you because you seek bankruptcy protection. You cannot be legally dismissed from your job just because you've filed for bankruptcy. However, filing for bankruptcy does not prevent your employer from firing you for other reasons. Still, if you are fired shortly after your employer finds out that you've filed for bankruptcy, you may be able to recover damages as a result. Speak to a reputable Fresno County Bankruptcy attorney if you have concerns about your job and your bankruptcy filing.

Myth: Debtors can be sent to prison if they fail to pay their debts.

Fact: Unless your debt is related to criminal activity - such as willful tax evasion, money laundering, or fraud, you cannot go to jail simply for being in debt. While a creditor may file a lawsuit against you in order to recover money you owe, you will not go to jail for being unable to pay.

Myth: If I file for bankruptcy and my debts are discharged, I will still owe taxes on the forgiven debt.

Fact: Debts which are discharged under bankruptcy are not subject to any type of forgiveness tax. If you file for bankruptcy in Fresno County, you will not be required to pay any taxes on the debts which are discharged through your bankruptcy.

These are only a few of the more common misconceptions - you may have heard of others as well. If you are concerned about your decision to file for bankruptcy in Fresno County, your best option is to speak with a reputable Fresno County Bankruptcy Attorney who understands the laws in your area and how best to represent your interests. Getting the facts when it comes to bankruptcy is important, because only then can you make a properly informed decision about your financial future. Contact our office today and schedule a free initial case evaluation. We can discuss your situation, and our team of reputable, reliable Fresno County Bankruptcy Attorneys will work to dispel any myths you may have about the bankruptcy process, so that you can choose the options that are best for you.