Don’t Believe Everything You Hear About Bankruptcy
There are a lot of myths and misconceptions about bankruptcy, and our lawyers hear new ones all the time from prospective clients. The unfortunate thing is that many of these myths prevent people from getting the help they really need. The best way to find out whether bankruptcy is right for you is to talk directly to an experienced attorney.
At Woodruff Law offices, we have helped hundreds of people in Georgia get free from crushing debt burdens and rehabilitate their credit. Contact our law firm for a free consultation about your bankruptcy options. In the meantime, see how many of these bankruptcy MYTHS sound familiar:
- Bankruptcy will ruin my access to credit. Bankruptcy improves your credit almost immediately. Most of our clients receive credit card offers almost immediately after the credit reporting agencies receive word of their bankruptcy cases.
- You can’t file for Chapter 7 bankruptcy any more. While the Bankruptcy Code was amended in 2005 to add means testing for Chapter 7 relief, the opportunity to get a complete discharge of unsecured debt is pretty much the same as it’s always been. There are just a few more steps to go through.
- I won’t be able to buy a house or car if I file for bankruptcy protection. Clients who follow our advice about restoring their credit will generally be able to get car loans and conventional mortgages at prevailing market rates within two years after discharge under Chapter 7 or Chapter 13.
- If I file for bankruptcy alone, then my spouse will be responsible for my debts. While married couples often file bankruptcy together, they may not need to. Your spouse will only be liable for your debts if they signed for that debt.
- Under the divorce settlement agreement, my ex-spouse assumed responsibility for the credit card debt. Even though he’s in bankruptcy, I’m off the hook. Definitely a myth. The details of a divorce settlement are binding on the divorcing spouses, but not on the creditors. If you were originally liable on the account, you are still responsible for the debt, unless, of course, you were released by the creditor.
This is just a sample of the wrong ideas people have heard about bankruptcy. If you know of other bankruptcy myths, please let us know. In addition, if you need help with debt problems, we are here to help. Contact us now at Woodruff Law offices in Marietta for a free initial consultation.