FACT: Bankruptcy lets you get rid of certain debts without paying for them…without EVER having to pay for them. When bankruptcy gets rid of debts…those debts are gone…FOREVER.  Getting rid of certain debts without you having to pay them back is simply how bankruptcy works. 

FACT: Unless you’re famous, chances are very good that the only people who will know about a filing are your creditors and the people you tell. While it’s true that your bankruptcy is a matter of public record, unless someone is specifically trying to track down information on you, there is almost no chance that anyone will even know you filed. 

FACT: Most chapter 7 filers don’t lose anything.  In every bankruptcy case, there are certain laws that allow you to keep the property you own.  Very rarely does anyone lose property if their bankruptcy is prepared correctly. 

FACT: This is completely false. There are no laws prohibiting you from buying homes, cars, trucks, equipment, household goods, etc. Once you get what is called your ‘discharge in bankruptcy’, many people, within 2 years after their bankruptcy case closes, have new cars, have bought houses, and have excellent credit.

FACT:  FILING BANKRUPTCY MAY BE THE BEST THING THAT EVER HAPPENS TO YOUR CREDIT.   Filing bankruptcy gets rid of debts you can’t afford.  Besides, having less debt to pay after a bankruptcy makes you look more attractive to banks, credit card companies and other lenders.  In my experience, unfortunately, it won’t be long before you’re getting credit card offers again.  

FACT:  Filing bankruptcy means you’re a good person, acting responsibly. Everyone wants to pay their bills.  Everyone.  And everyone wants to take care of their family and provide their family with all the things they need.  Putting our family first and making the changes necessary to make sure we have a roof over our head, food on the table and warm clothes to wear is the most responsible thing we can do.

You need to get over blaming yourself. Most of the people who file bankruptcy are good, honest, hard-working people, just like you and me, who file as a last resort after months or years of struggling to pay the bills.  You’re completely wrong in thinking that you’re a deadbeat if you file bankruptcy.  Filing bankruptcy is actually one of the most positive, responsible, honorable and noble steps you can take on behalf of your family and your family’s future, happiness and prosperity. 

FACT:  You are getting 2 completely different concepts confused with each other. You are getting the fact that bankruptcy is reported on your credit report for up to 10 years mixed up with the effect that reporting will have on your credit.  Just because something is reported on your credit report does NOT mean it will have a negative effect on your credit standing. Usually, on the date you file bankruptcy, that is the worst your credit report will ever look and most people will have successfully rebuilt their credit within 2 years.

FACT:  Cases are filed every day where a husband, or a wife, but not both, file bankruptcy. In many cases, where husband and wife both have a lot of debt, it makes sense and saves money for them to both file, but it is never a ‘requirement’ under the law. However, in many situations, there is no good reason at all for the second spouse to file.  In these situations, the spouse who needs the help can file and leave the other spouse completely out of it. 

FACT:  Not when you file with an EXPERIENCED bankruptcy attorney. 

FACT:  The minute you file bankruptcy, the Bankruptcy Court issues a Federal Court order telling all of your creditors to leave you alone, or else they will be fined.  There is nothing more powerful against your creditors than the possibility of a federal judge coming down on them for trying to contact you after the case is filed.

FACT:  Filing bankruptcy is not the problem. The problem is not being able to pay your bills and not being able to provide for your family. This is what causes stress and anxiety in the marriage.  Too many bills to pay?  Want to avoid divorce? File bankruptcy.  

FACT: A bankruptcy can eliminate many back taxes.  Under the law, there are 4 or 5 qualifications that have to be met, but if these are met in your bankruptcy your taxes are gone.  

FACT:  You can file and get a discharge under Chapter 7 once every 8 years.  And if you need protection from your creditors before that, there are other types of bankruptcy you can file.

FACT: No. Doing so would be against the law. Under the law when you file bankruptcy, you have to list all your property and all your debts.  Don’t believe a creditor or bill collector if they tell you that you have the choice to leave them out of the bankruptcy.

FACT: In most cases, you can’t afford not to! Most people think they can’t afford to file bankruptcy because they can’t afford their bills. When a person or couple decides to file bankruptcy, the money used to make payments on their bills is used to pay a bankruptcy attorney.