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Dispelling Popular Bankruptcy Myths

For the common man, filing for bankruptcy is one of the most confusing complex things that you can possibly do. It is riddled with legalities and intricate financial processes, and can be seemingly impossible to overcome. Combined with the stigma and myths that surround the subject, it is no small wonder that people actively avoid bankruptcy, looking everywhere else but there for solutions to help get their financial situation under control once more. If you, however, are struggling to make ends meet and find yourself falling further and further down a slippery slope, then it is in your best interest to contact an experienced San Antonio bankruptcy attorney as soon as possible to get your questions answered, and any of the common misconceptions and myths dispelled.

One of the most prevalent myths, the one that most often keeps people from filing for bankruptcy, is the idea that once you have filed, you will lose every asset that you have. People have an idea in their head that once they file, they will simply be given a cardboard box and be expected to start again. This is not true. In fact, many of your assets will be protected as your move forward in the bankruptcy process. Things such as your home, your car, clothing and retirement funds will almost always be protected against liquidation.

Another popular myth is that your credit will be permanently crippled, and you will never be able to secure a credit card offer again. Again, simply untrue. While bankruptcy will appear on your record for seven to ten years, you will almost immediately be able to start building your credit again. While it is advised that you make smart, financially feasible decisions, you will not be forever crippled. Loans might be more difficult to secure, but not impossible.

Other misconceptions include the idea that if you are married, both spouses are required to file together, and that you can only file once.  While filing together with your spouse is a good way towards you both working to discharge your debt, it is by no means required. You can file separately, or one can not file at all. As for, filing multiple times. While there are limits (such as Chapter 7 can only be filed once every eight years, and every two years for a Chapter 13) you certainly are not required to only file once. It is, however, to attempt to avoid multiple bankruptcies as they can negatively affect your credit.

If you or a loved one are currently considering filing for bankruptcy and looking for answers to your questions, contact a San Antonia Bankruptcy Attorney at the Malaise Law Firm today.

San Antonio 

Office Location 

San Antonio (Main Office)
909 NE LOOP 410
Suite 300
San Antonio, Texas 78209 
Phone: 210-BANKRUPT
Fax: 210-732-5826

 

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