Truth or Fiction? Bankruptcy Myths Exposed
Since I have been handling bankruptcy cases for over 14 years, I have spoken with thousands of individuals about their questions and concerns. Below are some of the most common bankruptcy myths that I have run into in the course of my practice.
Chapter 7 bankruptcy does not exist anymore.
Though new bankruptcy laws did go into effect in October of 2005, Chapter 7 still exists as a form of bankruptcy and 95% of my clients are still eligible to file. In most Chapter 13 cases, the new law has made it even easier to repay your creditors. The new bankruptcy laws and how they apply to you can be discussed during our first meeting.
Bankruptcy ruins your credit forever.
Your future credit rating will be affected by filing bankruptcy, but not forever. Bankruptcy can appear on your credit report for 10 years, but most future lender and particularly the credit card companies will be eager to give you new credit (be very careful and use future credit cautiously).
You lose all of your property if you file for bankruptcy.
It is true that you may have to relinquish some of your property. However, there are exemptions that exist and I am able to work with you on retaining as much of your property as possible.
Only losers file bankruptcy.
This is one of the largest bankruptcy myths. Many famous individuals and corporations such as Larry King, Northwest Airlines, Kmart, and even Donald Trump have filed for bankruptcy at one point. Many of these and other individuals and organizations go on to be highly financially successful in the future.
Your name is going to be in the newspaper.
I handle all bankruptcies with a very high level of confidentiality. No one has to know that you have chosen to seek relief from your debts through bankruptcy. Many of your friends, neighbors, and coworkers may also have filed bankruptcy without you even knowing.
Your spouse is automatically liable for your debt.
Depending on your individual situation, your spouse is not always held liable for your debt. During your first meeting with me, we can discuss this specific matter further and determine how filing bankruptcy affects both you and your spouse.
All debts must be listed on the bankruptcy petition.
There are certain debts that do not have to be listed in your bankruptcy filing. However, if the debts are not listed, they are not subject to protection under the petition.
Contact me, bankruptcy attorney Walter Metzen to learn more about bankruptcy myths and truths. I offer a free initial consultation so you can meet with me to discuss your specific situation. Let me help you begin the process of freeing yourself from debt today.
We are a Debt Relief Agency helping people file for bankruptcy relief under the Bankruptcy Code. Let us help you decide if bankruptcy is right for you.