Top 5 Bankruptcy Myths

There are numerous bankruptcy myths that are in existence, but people who are filing for bankruptcy or who are planning to file for bankruptcy in Texas should not fall victim to these myths.  Below, the Malaise Law Firm sheds light on some of these myths and provides useful information for those who are considering consumer bankruptcy:

1.  Your credit will be ruined forever. When people file for bankruptcy, it appears on their credit reports for up to 7 years.  After that, the bankruptcy is removed.

2.  You will lose your house.  Many people are filing for bankruptcy to keep their homes, not lose their homes.  In fact, when people file for bankruptcy, they can avoid foreclosure.  The key is working with a San Antonio bankruptcy attorney that can help people remain in possession of their homes.

3.  You can never get more credit cards.  This is simply false as many credit card companies are offering people second chances by extending them limited credit.

4.  All debts are cleared if you file for Chapter 7.  This is not completely true.  Chapter 7 may wipe out your unsecured debts, but you will still be responsible for things like student loans or paying judgments.

5.  Both spouses must file for bankruptcy.  That is false as it is very common for one spouse to have debts that existed prior to a marriage.  Therefore, one spouse may choose to file for bankruptcy and the other spouse will not have to.

If you have further questions about bankruptcy, contact the Malaise Law Firm to speak with a bankruptcy lawyer!