When potential clients call us, they are usually stressed and scared. When you are drowning in uncontrollable debt, and you’re in danger of losing your car or your house, being afraid is understandable.
When you’re scared, believing just about anything you hear is easy. There are many myths and misconceptions about bankruptcy floating around, so we thought it would be helpful to dispel some of the more common myths. So without further ado, here is the truth behind the five most common myths about bankruptcy:
1) Only bad people file for bankruptcy
Bad things happen to good people all the time. It does not take much to start a downward spiral of debt – a sudden job loss, a salary reduction, or an accident with huge medical bills might be all it takes to cause your debts to spiral out of control. Bankruptcy laws were created to give good people a fresh start – you are definitely not alone!
2) You will lose all your stuff if you file for bankruptcy
This awful myth is probably the biggest deterrent to filing for bankruptcy. Most people assume that when you file for bankruptcy, you will lose all your assets – including your house and your car. Luckily, bankruptcy laws exist so you can get a fresh start AND keep your property. Texas bankruptcy law includes certain exemptions for personal assets, which are meant to protect your car, your home, your retirement plan, and your property. In almost every bankruptcy case, our clients were able to keep everything they had.
3) You won’t have any more debt after you file for bankruptcy
Yes, a Chapter 7 bankruptcy can eliminate most kinds of debt, but that does not mean that you will be completely debt-free after your case. Certain types of debt are protected by law, so they are not included in bankruptcy cases. If you owe child support, alimony, or student loans, you will still be responsible for those debts after your bankruptcy case is finished.
4) Everyone will know that I filed for bankruptcy
Thanks to social media and news sites, we quickly hear about celebrities or executives of large corporations who file for bankruptcy. For the rest of us, bankruptcy happens with much less fanfare. If you file for bankruptcy, no one other than your attorney and your creditors will know.
5) I’ll never get credit again if I file for bankruptcy
Most of our clients are surprised at how quickly they find their mailboxes flooded with offers from credit card companies. You will have to be careful, though – the offers will come from subprime lenders and will have high-interest rates attached. With some responsible spending and a bit of time, it is definitely possible to establish credit again.
If you’re looking for a bankruptcy attorney in Dallas, Highland Park, Addison, Plano, Frisco, Richardson, or anywhere else in the DFW area, call Rubin & Associates today at 214-760-7777 today to schedule a free consultation. We’ve helped thousands of Dallas area people just like you get a fresh start on life. We’ll explain all of your options so you can make the right decision for your family.