Bankruptcy Myths Debunked
There are many myths floating around about bankruptcy. Unfortunately, many of the things you hear about bankruptcy tend to make it sound like a horrible alternative, and are frankly, false. Here are some of the myths that we hear frequently at the law offices of Ben Dodge. We hope we can put some of the myths to rest and provide you with the accurate and truthful information that you need.
The Myths
The new laws make it impossible for me to file bankruptcy
This myth has been going around since the new federal laws governing bankruptcy went into effect a few years ago. It is simply not true. You can still file bankruptcy, and in most cases, you can still file on nearly everything that you could under the old laws.
#1 Being approved for a bankruptcy is difficult
This is another misconception. The process of filing for bankruptcy is actually easy. Having your bankruptcy petition approved is nearly just as easy. The difficulty often lies in the process being confusing. All of the technicalities that come with filing for bankruptcy can be difficult to understand. Hiring an experienced bankruptcy attorney to guide you through the bankruptcy proceeding will make the process nearly effortless on your part.
#2 I have filed bankruptcy before, so I cannot file again
This is simply not correct. There are limits as to how often you are able to file, as well as what type of bankruptcy you are eligible for. For instance, you are only allowed to file Chapter 7 bankruptcy once every eight years. However, you can file Chapter 13 bankruptcy more often than that if it is necessary.
#3 If I file bankruptcy, I will lose all of my possessions
This is perhaps one of the biggest misconceptions about bankruptcy. Bankruptcy law has very strict guidelines for properties that are exempt from being liquidated or absorbed in a bankruptcy claim. Items you are able to protect in your bankruptcy can include your home, car, household goods, and items you need for your profession. There are some limits on these things, but all are properties you have the ability to keep.
#4 I can never get credit again if I file bankruptcy
People often claim this as a reason for not filing bankruptcy. The fact is it may be easier to get credit after you file for bankruptcy. Many people begin receiving credit offers shortly after they file a petition. Naturally, the terms and conditions of your credit lines will not be the best, but it is a start to rebuilding your credit. If you had decided not to file bankruptcy, you would still have that massive amount of debt making it even more difficult to obtain a home loan or substantial line of credit in the future.
#5 I am married, so both my spouse and I must file for bankruptcy
Generally, this is the best option, but it does not have to be the only option. There are situations when it makes sense for only one-half of a couple to file for bankruptcy. An experience bankruptcy attorney will be able to help you understand your unique situation and provide you with the direction you need to make the best choice.
Contact bankruptcy attorney Ben Dodge today for your free consultation.
