Disclaimer

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Back To All Articles

bankruptcy, Credit Report, Credit Score, Debt, General Info, Taxes

5 Common Bankruptcy Myths: Debunked

On Behalf of Veitengruber Law | Apr 13,2016

Without a doubt, there is no shortage of misinformation when it comes to bankruptcy. Veitengruber Law works hard to consistently provide valid, up-to-date information about bankruptcy in New Jersey to help our readers and clients educate themselves based on facts. Today, however, we're going to address some of the biggest bankruptcy myths and the truth that lies behind them. Much like the mythical mermaid, believing in something that isn't based on facts won't make it a reality any way you look at it.
  1. "You can't discharge income taxes in bankruptcy." For some reason, it is a common misconception that income taxes are non-dischargeable in a chapter 7 bankruptcy. The reality is that income taxes are the only type of tax debt that can be discharged! Read more about the rules associated with tax debt qualifications for bankruptcy here.
  2. "Because of the Means Test, I'll have to file chapter 13, which won't help me get rid of any debt, so why bother?" While the first half of this may be true, even if you don't qualify for chapter 7 based on the Means Test, filing for chapter 13 does not automatically mean that you will have to repay all of your debts in full. In fact, most chapter 13 reorganization plans see the debtor only paying a fraction of their total debt amount.
  3. "I can't risk ruining my spouse's credit, so bankruptcy's not an option." This is something we hear constantly. In New Jersey, bankruptcy does not have to be filed jointly with your spouse. You may need to disclose how much money your spouse makes, but ultimately you can file solo and it will literally have no impact on your spouse's credit score.
  4. "Bankruptcy is only for people who are unemployed and/or impoverished." While we understand why this belief exists, we want to be clear that it doesn't matter how much money you make when it comes to bankruptcy. As long as your debts and expenses outweigh your income, you will almost certainly pass the Means Test, which will qualify you to file for bankruptcy in NJ.
  5. "Any attorney can help me file for bankruptcy. The cheaper the better." Did you know that some attorneys will take your retainer even if they have zero experience with bankruptcy law? Do your research and select a bankruptcy attorney in New Jersey who has hundreds of bankruptcy cases under his belt. Selecting a NJ lawyer with little to no bankruptcy experience may cost you less money up front, but the end result can be catastrophic.
At Veitengruber Law, we've made it our priority to help New Jersey debtors get out from under their debt. We provide our clients with personalized and in-depth meetings so we can evaluate your debts from every angle. As our client, you'll receive tailored advice and a team to walk you through the entire bankruptcy process from start to finish and beyond. Because we understand the financial strife our clients are facing, we offer free consultations and extremely flexible payment plans that fit into your reality. "There are very few monsters who warrant the fear we have of them." ~ Andre Gide

Contact

Wall Township

1720 Highway 34 Suite 10 Wall Township, NJ 07727

Phone: (732) 894-4909

Fax: (732) 695-3917

Bordentown Office

33 Third Street 2nd Floor Suite 3 Bordentown, NJ 08505

Phone: (609) 542-2339

Metuchen Office

(By Appointment Only)

247 Main Street Metuchen, NJ 08840

Phone: (908) 386-4767

Request Your Free Case Evaluation

Fields marked with an * are required

Name*

Email address*

Phone

Brief description of your legal issue

I have read the disclaimer

For security reasons, enter the text you see in the below graphic:

Security Code
Free Consultation