Bankruptcy Myths

Myth: If I file for bankruptcy, I will lose everything I own. Fact: Bankruptcy law provides a certain extent of protection to a debtor’s assets, in both Chapter 7 liquidation and Chapter 13 reorganization cases. You may have the opportunity to keep your house, your car or other property depending upon your particular case. Myth: Everyone will know that I filed for bankruptcy. Fact: There is not a limit to how many times a person can file for bankruptcy, but there is a particular time period that a debtor must wait after filing before he or she can file a new petition. This time period may range depending upon the previous type of bankruptcy case filed.

Myth:

I can only file for bankruptcy once.

Fact:

Although bankruptcy is a public legal proceeding, it is very doubtful that many people will know that you are filing. The average person’s bankruptcy case will not be made public, unless the person filing tells others about what he or she is doing. The media may pick up certain bankruptcy cases, but usually only those involving celebrities or large corporations.

Myth:

Any and all debts will be eliminated by filing for bankruptcy.

Fact:

While many debts can be successfully discharged by filing for bankruptcy, there are exceptions. Bankruptcy results in the elimination of unsecured debts, such as credit cards, personal loans, utility bills, etc. Certain taxes, alimony, child support and other similar debts cannot be discharged. However, this will vary from case to case and as such it is important to ask a lawyer about your particular debt.

Myth:

Because I’m married, both my spouse and I will need to file for bankruptcy.

Fact:

A person who is married may file jointly with their spouse or may file alone. There is no requirement that married couples must file together.

At the Law Office of Richard L. Brown, Jr. we work to dispel the common misconceptions and myths about bankruptcy. We welcome you to contact us for a free consultation regarding your case, at which time we will be happy to answer your questions and address your particular concerns.

Contact our firm today for your free Union County bankruptcy evaluation.