Bankruptcy in the Era of COVID
September 28, 2020
Our Managing Attorney, Matt Herron, had the opportunity to discuss his thoughts on financial distress due to the COVID P...
Read More >Bankruptcy Myths Uncovered
Leave a CommentWhile there may be many creditors out there exaggerating the stigma of bankruptcy, the truth is that there are more advantages than disadvantages if you’re already experiencing financial difficulty, when it comes to filing for personal bankruptcy.
The Debt Doctors provide honest and non-judgmental guidance to clients facing bankruptcy. Uncover the truth about these common myths regarding the misconceptions associated with bankruptcy:
Myth: If you are married, you cannot file for bankruptcy by yourself.
The Truth: Anyone can file for bankruptcy whether its individually or jointly. The process is similar to filing your taxes. The Debt Doctors can evaluate whether filing jointly or individually makes the most sense and is the most beneficial for your specific situation.
Myth: If you file for bankruptcy, you will never get credit again.
The Truth: Once your bankruptcy is closed and discharged, you will be able to immediately rebuild your credit. The Debt Doctors can help you take the necessary steps to initiate rebuilding your credit right away. Most of our clients have more money in the bank and better credit 2 years after their bankruptcy.
Myth: If you file for bankruptcy, lenders will ignore you.
The Truth: It’s actually the opposite. You are going to get offers for car loans and credit cards when you file. The Debt Doctors can help teach you how to utilize these offers to re-establish credit.
Myth: All bankruptcy options are basically the same.
The Truth: There are different chapters of bankruptcy. The most common are Chapter 7, Chapter 11 & Chapter 13 and they are very different. By consulting with the Debt Doctors, you can learn which type of bankruptcy is best for you.
Myth: You will lose everything you own if you file for bankruptcy.
The Truth: When you file for bankruptcy, certain assets such as your home, car and retirement plan will be protected. Just because you file for bankruptcy, doesn’t mean you are going to lose everything. We help you protect what’s important to you.
Myth: Only “losers” file for bankruptcy.
The Truth: Most people who file for bankruptcy have been faced with circumstances out of their control such as divorce, loss of a job, failed business, identity theft or an illness. We offer a free, non-judgmental consultation to see if we can help.