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Common Myths About Bankruptcy

There are many myths out there about bankruptcy.  Let’s take a look at some of the most common myths and the truths about those myths:

Myth #1: I have to give up everything I own when I file bankruptcy.

Truth #1: You do not have to give up everything you own when you file bankruptcy.  There are many important factors to consider including the value of your assets, your liabilities, the state’s exemption laws, and what chapter of bankruptcy you are filing.  For most people, your important property such as your home, vehicle, household goods, and retirement accounts can be protected when you file bankruptcy.

Myth #2: I must file bankruptcy jointly with my spouse if I am married.

Truth #2: You have the option of filing bankruptcy alone or jointly with your spouse.  The determination of which of these options is more beneficial for you is based on your specific financial situation.

Myth #3: I will never be able to get any credit again after I file for bankruptcy.

Truth #3: You will still be able to get credit after your bankruptcy is discharged.  While the interest rates you are offered after bankruptcy will initially be higher than you may hope for, you will be able to get credit.  One to two years out from bankruptcy, if you have taken positive steps toward rebuilding your credit score, not only will you be able to get credit but you will probably receive better offers than you did before you filed bankruptcy.

Myth #4: If I am behind on my mortgage they’ll kick me out if I file.

Truth #4: Filing for bankruptcy actually gives you more time in the house.  It stops the foreclosure process and allows you time to come up with a solution to retain your home if that is what you want to do.

Don’t let these myths or any of the other myths out there about bankruptcy overwhelm you.  Schedule a FREE bankruptcy consultation today with the experienced attorneys at MILLER LAW GROUP, P.C.  We will work with you to evaluate your specific financial situation and answer your questions about bankruptcy.  Call us today at (434) 974-9776 to make an appointment.

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