Search Site
Menu
 Whippany, New Jersey | New York, New York
Free 30-Minute Consultation 973-428-0800
Common Misconceptions about The Bankruptcy Process

Common Misconceptions about the Bankruptcy Process

Interviewer: What are some of the misconceptions you find among your clients regarding the bankruptcy process?

You Will Not Go to Jail for Non-Payment of Debt

Tanya: I think some people think that they’re going to go to jail for nonpayment of debt. That doesn’t happen. I think many people don’t know their own finances. I find that a number of people that end up in bankruptcy don’t understand basic finances.

Many People Do Not Have a Thorough Knowledge of Basic Finances

I’ll ask a question, such as how much equity is in your house and they don’t even ever consider what their house is worth versus what is owed on it. What they know is what their monthly payment is. Interestingly, I think a lot of the people that file for bankruptcy, maybe were not properly educated in terms of debt and savings.

When they get credit, whether it’s a credit card or a house, they’re just assuming they’re entitled to it or they’re assuming they should take it because it’s being offered to them; therefore, they can afford to pay for it.

Interviewer: You’re putting your trust in the financial institution. They wouldn’t have offered this to you if they thought you couldn’t afford it.

Attorney Helfand Advises Using Credit with Restraint and Not before You Have a Comprehensive Knowledge of Your Financial Obligations

Tanya: You must know your own limits and make your own budget. You need to figure out yourself what your lifestyle is and what your obligations are. Just because somebody offers you a huge line of credit it doesn’t mean you can afford it or you should take it.

I think a lot of people unfortunately are not financially responsible and I think the schools really need to have a class in this. There are just some basic financial common sense practices that people just don’t know.

Filing for Bankruptcy Will Eventually Restore Your Credit, Not Ruin It Permanently

Interviewer: Right, I agree. Are there any other misconceptions people have about bankruptcy?

Tanya: People assume that their credit will be ruined forever. Whereas again, with that 720 credit plan, within two years you can bring it right back. There are techniques to bring it right back. People should not assume that they will never get a house again or get a car again. No, those are misconceptions. If you have a decent job and again you budget yourself properly, you will still get a car. You will still be able to buy a house afterwards.

Our Offices
  • Whippany Office
    575 Route 10 East
    Suite 1
    Whippany, New Jersey 07981
    Phone: 973-428-0800
    Fax: 973-428-0830
  • New York Office
    420 Lexington Ave.
    New York, New York 10170
    Phone: 646-213-9053
Testimonials
  • "Without Tanya and her time, the really unpleasant experience of getting divorced would have been even worse. They were able to settle the matter very quickly and helped me fit this into my tight schedule allowing me to leave to move abroad for my dissertation research on time without having to delay the trip because of the divorce. They also did all of it within my very tight budget. Thank you so much for your help and dedication to my legal matter!"  - AG

  • "Tanya and her Associates are outstanding! What I admire most about Tanya is her knowledge of the law with her keen negotiation skills to foster mediation. Her strategies efficiently resolve conflict leading to the resolution of cases. She and her team have an outstanding work ethic, know what data are needed, and get the job done. It is a pleasure to work with such wonderful professionals."  - Tara, Whippany

  • "I found Ms. Helfand's knowledge and tenacity most reassuring during the ordeal of my divorce. She was steadfast in her guidance and was very effective in her negotiations on my behalf. I would recommend her without a second thought."  -Jonathan

  • "Ms. Helfand was very professional and helpful with our bankruptcy case. Her advice was very useful and helped us make the proper decisions for our situation. In addition, she was very supportive during a very difficult time for us. Finally, she set very specific fee expectations and there were no surprises when it was completed. I would use her services again and would recommend her, without question."

  • "She is Incredible, very quick responding to the other party. Very professional and courteous. I highly recommend her. She has a great passion and love for every single case."

  • "Tanya and her team were very professional handling my divorce proceedings. She was very proactive in making the other attorney finally get the process moving forward. I would recommend her to anyone looking for legal services."  -Scott

  • "Ms. Helfand strategized & processed, both, my Divorce & Chapter 13 Bankruptcy. As both cases were emotionally and legally challenging, Ms. Helfand proved to be an empowering Mentor along the path to clarity for which I am truly grateful.I highly recommend her legal expertise to anyone who is seeking a confident, savvy & caring attorney to become at peace with self and any legal matters."  -Vas

Media
VideosView All

Podcasts
view All

Press Releases