Top 5 Myths about Bankruptcy

You will never be able to own anything again - FALSE 

There are no restrictions in future ownership.  Many people who file for bankruptcy are able to get new lines of credit, qualify for a car loan, and even secure a mortgage after their filing is complete. 

You'll lose everything when you file - FALSE

There are various exemptions in a bankruptcy case that can protect your assets, such as your vehicle, home, and regular household items. Our attorneys can help you maximize your protections so you can lose as little as possible in your case. 

Filing bankruptcy will hurt your credit for 10 years - FALSE

Bankruptcy is reported on your credit report for up to 10 years, but it can drop off after 7 oftentimes.  Most people’s credit score improves after filing Chapter 7 or Chapter 13.  Mayer & Newton offers all our clients a free course called 720, which helps raise your credit score after filing.

You will never get credit again - FALSE  

People in Chapter 13 can borrow money during the case.  Chapter 7 filers get inundated with offers for new credit cards and car loans after their discharge.  Usually the credit rate is high, but credit is available.  Bankruptcy gets rid of debt which puts you in a better position.

Bankruptcy represents a personal or moral failure - FALSE  

More than 90% of bankruptcy filings are traceable to job loss, illness, or divorce, factors largely out of anyone’s control.  Most people are good, hard-working people, like you and me, who file as a last resort.  The bankruptcy laws are morally and ethically based on sound biblical principals which demand the routine cancellation of excessive debt.

If you are married, both you and your spouse have to file bankruptcy - FALSE 

In most cases where a husband and wife have a lot of debt it makes sense and saves money to file together.  In many cases only one spouse has the debt, that person can file and your filing will have no direct impact on your spouse’s credit.

Want to Learn More About Bankruptcy?

If you would like to learn more about bankruptcy and what it can do for your debts, as well as how it can affect your finances afterward, feel free to give us a call to discuss your concerns.

Request your free consultation today.

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