Myth: Your Property Will be Sold by the Bankruptcy Trustee
This is a common fallacy that I deal with every day. People come to me hesitant to disclose their assets afraid they will lose them. Less than 1%…
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Bankruptcy isn't what you think it is
The most common misconceptions about filing — and what actually happens.
Myth: Taxes Are Not Dischargeable in Bankruptcy
Income taxes are dischargeable in bankruptcy if they are for a tax year more than three years ago and you’ve had the tax return filed for at least…
Read moreMyth: Only Deadbeats File for Bankruptcy
A deadbeat, according to the dictionary I consulted, is an idle, feckless and disreputable person. In nearly 20 years of representing debtors I have yet to meet a…
Read moreMyth: You Will Never Get Credit Again
The fact is that if you take care to rehabilitate your credit, your credit score can easily go back to prime territory; over 680 and into the 700s…
Read moreMyth: You Have to Hide Assets to File Bankruptcy
This myth is a corollary of the one above. It comes into play when people think they are going to lose their property if they disclose it all.…
Read moreMyth: It Is Hard to Qualify for Bankruptcy
It is easy to qualify for Chapter 13 so long as you are an individual (not a corporation or other business entity) and your secured debt is less…
Read moreMyth: It Is Expensive to File Bankruptcy
It is not expensive to file bankruptcy. In fact, it is probably the best demonstrable value for legal services that exists. Chapter 7 cases are flat fees and…
Read moreMyth: Everyone Will Know You Filed Bankruptcy
Personal bankruptcies are not published in any newspapers or journals (unless you’re famous). The only ones who will know you’ve filed bankruptcy are your creditors and anyone you…
Read moreMyth: Debt Consolidation Is As Good as Bankruptcy
Many companies, some reputable, but most not, will offer to settle your debts with your creditors at a discount from their face value. They ordinarily take 15% or…
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