Bankruptcy Myths

Separate Fact From Fiction

Many people are reluctant to file for bankruptcy relief because they are worried about how their credit will be affected. To begin with, your credit will not be permanently affected. Bankruptcy stays on your credit for a maximum of 10 years. If you are behind on your bills or facing foreclosure, your credit is already being affected. Bankruptcy can end the downward direction of your credit. What bankruptcy does is stop the late payments and reporting from your creditors to the credit reporting agencies.

After discharge from Chapter 7, your debts are gone. You can begin building your credit immediately. By getting control of your bills and paying them on time, you are in fact rebuilding your credit. While in Chapter 13, you are demonstrating your ability and willingness to make required monthly payments through the Trustee. This also helps rebuild credit and shows a positive trend in your money management.

Bankruptcy Provisions under U.S. Law

Title 11 of the United States Code provides for bankruptcy. This means filing for bankruptcy is not wrong, illegal, or unethical. Simply stated, the Federal Government provides for bankruptcy filings, making it a legal and beneficial means to get back on top of your finances and help you and your family. Individuals across the country with varying financial means have used and continue to use the bankruptcy laws to protect themselves and their families. In addition, you cannot be fired for filing bankruptcy. The bankruptcy court does not contact your family, friends, employer or neighbors to let them know you filed bankruptcy.

It is important to understand and avail yourself of bankruptcy options if your financial situation warrants this as a permanent solution to runaway debt. That is why we recommend that you speak to Attorney Chenelle as soon as possible to get the information you need to make an informed decision about your finances and your future.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.