Dispelling A Few Common Bankruptcy Myths
Posted on October 16, 2012 King and King Bankruptcy Attorneys
If you are considering filing for bankruptcy, chances are you have received information from many different sources. Some of it is genuine information, some is opinion, and some is simply myth. It’s important that you have accurate information about bankruptcy, not falsehoods. Here is a list of some common bankruptcy myths and why they are not reality. We hope this will clear things up for you as you make decisions about your financial future.
Common Myths About Bankruptcy in Georgia
Myth: People who file bankruptcy lose everything.
Reality: In many cases, your bankruptcy attorney is able to help you keep important possessions. Bankruptcy law contains many "exemptions" which are designed to help people keep their house, car, retirement accounts, furniture and other property. Remember, bankruptcy is designed to help you, not hurt you.
Myth: Bankruptcy will destroy your credit.
Reality: In truth, if you are in a position where bankruptcy is an option, your credit may already be heavily damaged. While a bankruptcy filing does show up on your credit report for up to 10 years, your credit is not impacted that long. In fact, the fresh start bankruptcy provides allows you to rebuild credit rather quickly.
Myth: It’s hard to file for bankruptcy.
Reality: It is true that the bankruptcy laws changed in 2005, but the vast majority of people who qualified for Chapter 7 before the changes will still qualify today. If for some reason you do not qualify for Chapter 7, there would be nothing preventing you from filing for Chapter 13instead.
Myth: Filing bankruptcy prevents you from getting credit in the future.
Reality: By lowering your debt-to-income ratio, bankruptcy makes you a more attractive candidate for loans. In fact, many filers are able to secure a mortgage only a few years after their bankruptcy is complete. Creditors like to see that you are taking control of your finances. Bankruptcy is evidence of that.
Myth: Newspapers publish the names of people who file for bankruptcy.
Reality: Unless you are a celebrity, your bankruptcy is not really an item of public interest. Newspapers will rarely, if ever, publish the names of people who seek bankruptcy protection.
We hope you have a few more of the facts. Have more questions? Schedule a free consultation with an experienced Atlanta, Georgia bankruptcy attorney; please contact King and King at 404-524-6400 today.