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Bankruptcy Myths

Misconceptions about Filing for Bankruptcy

The changes in the bankruptcy laws in 2005 have created a number of misconceptions regarding who now qualifies for Chapter 7, Chapter 13 and the types of debt that are covered by each.  And before you decide if filing bankruptcy is the best option for you, it is important that you have all the facts.

If you are seriously considering filing for bankruptcy, speak with an attorney.  We offer free consultations and are experienced in helping good people get the debt relief the need and get a “fresh start”. Call the Rosenthal Law Group, P.A. today at 727.342.0347 to schedule an appointment for your free consultation. 

The Most Common Bankruptcy Myths

  •  I can't file for bankruptcy now that the laws have changed

 Yes, you can. Although the changes to the bankruptcy laws in 2005 have made bankruptcy more difficult by adding additional steps in the process, anyone who was eligible for bankruptcy before the new law was enacted is still eligible today.

  • If I file Bankruptcy I will lose everything I have

 No, you won’t.  Bankruptcy laws are designed to protect you and keep you from losing all of your assets, while attempting to find a way to settle as much of your debt as possible.  Contact us for a free consultation and let us help determine your best option. 

  • Bankruptcy Will Ruin My Credit

No, it won’t.  This might be the most famous and terrible myth out there. If you have heard that your credit will be ruined and you will not be able to get a loan for ten years after filing, this is simply not true. This myth scares many people, who could otherwise get a fresh start, away from filing bankruptcy and into debt negotiation and debt consolidation plans, where they waste a lot of money and time without getting the debt relief they really need.

The truth is that Bankruptcy is not your problem, it is the solution to your problem and filing Bankruptcy will not permanently damage your credit.  Less than two years after completion of a bankruptcy your credit score can be back to over 700.  You will once again be able to get a good interest rate on a car loan or a home mortgage.  Many people who are in a situation where bankruptcy is a good option would not be able to achieve such a credit score or qualify for lower interest rates in such a short period of time without filing bankruptcy.

  • Filing Bankruptcy can’t help with the civil judgment against me

 Yes, it can. Even if you have been ordered by a court to repay someone for goods delivered or services provided, that debt can be dischargeable by filing bankruptcy; unless, of course, the debt was incurred through fraud.

You don't have to go through this alone. Call us today at 727.342.0347 to schedule your free consultation.