Friday, September 25, 2015

Bankruptcy Myths revisted

In my book I cover a number of common misunderstandings about bankruptcy.  Below I go into some of the most common misunderstandings about bankruptcy.

Myth #1: Only Losers File for Bankruptcy

This is perhaps the biggest myth and is probably the most common belief among the general public.  The reality is that millions of people file every year.  Many of these people are doctors and lawyers.  Many of these people are normal regular hardworking individuals.  In many cases a person is forced to file due to things completely out of their control. 

Myth #2: People Who File for Bankruptcy Lose Everything They Have

Almost every day in my practice I heard somebody say “I really don’t want to file because I need my car to get back and forth to work,” or “I need your help but I can file Bankruptcy because I can afford to lose my home, it would devastate my children.”  

The good news is that you don’t have to lose your house, cars, furniture, collectables, photo albums, jewelry, or even you dog.  In most cases, my clients have been able keep everything.  Obviously there are limits to what a person can keep in Bankruptcy, but for most people these limits are quite generous.  I cover this in much more detail in my book, "Should I File: A Definitive Guide to Bankruptcy," in the section entitled “What Can I Keep?”  

Myth #3: If I File My Credit Will Be Destroyed Forever 

Most people believe this one.  My experience is that many attorneys even believe this one.  However it is simply not true.  First of all, the Fair Credit Reporting Act specifically limits the timeframe in which a Bankruptcy appears on your credit report to ten years.  This means that ten years and one day after your discharge the Bankruptcy will have no more effect on your credit.  The good news is that there is no need to wait that long.  Many people whom I have worked with have gotten credit cards and even mortgages with a year or less after filing for Bankruptcy.  How this works and what you should do to rebuild your credit is covered in detail in my book in the section entitled, “OK I filed, What do I do Now?”


Myth #4: If I File All My Friends Will Find Out

For some reason this myth just will not go away.  Lots and lots of people whom I have dealt with have expressed fear and anxiety over people finding out that they filed.  And while we will deal with this issue in much greater detail a little later on, I think it is important for you to know that in many case in fact in most case the only people that ever find out about your bankruptcy are those people you told about it.  In fact it is very likely that someone you work with or a close friend of yours has filed and you don’t know about it.  If they can get away with it so can you.  This myth is covered more fully in my book in the section entitled “Everyone is Doing it Maybe You Should Too”


I hope that you enjoyed this preview of my book.  I will be posting more myths in a few days.  If cant wait these myths and many more are covered in my book.  for more information about my book click below.

3 comments:

  1. Thank you for these informative tips! Many people wait too long to get the debt help they need. For most people having money problems, the thought of filing for bankruptcy is a last resort. As for me, the key point is to find an efficient bankruptcy lawyer. Personally I consulted http://mybkhelp.com (tel. 855-814-68-43) and like the service they provided.

    ReplyDelete
  2. I'm glad that you found this useful I think getting good representation is key. I can't endorse specific providers but I'm glad you found someone that worded for you

    ReplyDelete
  3. I'm glad that you found this useful I think getting good representation is key. I can't endorse specific providers but I'm glad you found someone that worded for you

    ReplyDelete