Top-Rated Lawyer Anne VanderBroek Reveals Damaging Misconceptions Surrounding Bankruptcy That Hold People Back – Spring Lake, MI

Aug 7, 2020

Bankruptcy attorney Anne M. VanderBroek, founder of VanderBroek Law in Spring Lake, MI, outlines the leading misconceptions that people have about bankruptcy that keep them stuck where they are financially. For more information please visit https://vanderbroeklaw.com

Spring Lake, MI, United States - August 6, 2020 /MM-REB/ —

In a recent interview, top-rated bankruptcy attorney Anne M. VanderBroek, founder of VanderBroek Law in Spring Lake, MI, revealed some damaging misconceptions surrounding bankruptcy that keep their finances from ever recovering.

For more information please visit https://vanderbroeklaw.com

When asked for a comment, she said, "There's this stigma attached to bankruptcy that it's going to follow people around for the rest of their lives and that after filing they won't be able to get a job, credit, or a house. However, this is not the reality of the situation. In fact, bankruptcy is a fantastic option for a lot of people."

One widespread misperception about bankruptcy is that anyone declaring bankruptcy won't be able to recover their credit score or obtain lines of credit. While it's true that credit scores take a dip after filing, they eventually will be on an upward swing because the debt is relieved, according to VanderBroek.

"I've seen credit scores bouncing back 100 points, although this is not the case with everyone. Within a year, though, filers experience a turn for the better. For instance, it's even possible to get an auto loan with a decent rate of 12-15% the day after filing. And in two years after filing, you can even get a mortgage on a house,” she said.

“Credit card companies are like sharks, and the bankruptcy is like blood in the water. They know that they’re going to be able to feed, so it’s quite possible to apply for credit cards after your debt has been wiped clean post-bankruptcy,” she said.

Many people also are mistakenly under the impression that bankruptcy doesn’t allow for much protection for their assets.

When asked to elaborate, she commented, “Bankruptcy offers a lot of protection - the biggest of which is the automatic stay. It keeps you from getting sued or from your house being foreclosed and then sold at auction.”

According to VanderBroek, many people assume that the best way to resolve their debts is through debt consolidation companies.

"If you're able to afford a plan to pay part of the debt back to your creditors and are looking into debt consolidation companies, then you really need to be in Chapter 13 where you'll have all these protections. Debt consolidation requires a huge amount in fees, so going through with a Chapter 13 bankruptcy is a much better option," she said.

Those who are in debt often think that they should use whatever assets they have - even if those assets are in exempt accounts - to pay back what they owe.

"Bankruptcy offers allowances, the biggest of which are tax-deferred retirement accounts - such as IRAs and 401Ks - which are 100% exempt. This means that you can have $250,000 in a retirement account, and usually the bankruptcy court can't touch it," she said.

"Of course, when it comes to bankruptcies, there are issues and areas that are less black and white. If you're in debt and unsure how to proceed, the best thing to do is consult with a bankruptcy attorney to help you navigate the process of getting out," she said.

Source: http://RecommendedExperts.biz

Contact Info:
Name: Anne M. VanderBroek
Email: Send Email
Organization: VanderBroek Law PLLC
Address: 17190 Van Wagoner Rd, Spring Lake, MI 49456
Phone: (616) 607-7522
Website: https://vanderbroeklaw.com

Source: MM-REB

Release ID: 88971241