Bankruptcy Myths & Misconception
The Truth About Bankruptcy
Especially since the new law went into effect, there has been a lot of bad information circulated via word of mouth and other sources about bankruptcy. At the Phoenix, Arizona, AZBK Lawyers we have chosen a few that we hear fairly frequently in our office and decided to put the misinformation to rest once and for all.
Myths and Misconceptions
I can’t file for bankruptcy since the new law went into effect: This is not true. In fact, nearly everything that could be done under the old law can be done under the new law.
Filing for bankruptcy is very difficult: It really isn’t. The process is fairly straightforward but it can be difficult to understand at times. An experienced bankruptcy attorney can help guide you through the process smoothly.
I can only file for bankruptcy one time in my life: Wrong. You can only file for Chapter 7 once every eight years and you are actually allowed to file for Chapter 13 more frequently than that if necessary.
I will lose everything I own: Not even close. Bankruptcy law allows for certain exempt property that cannot be liquidated or taken in a bankruptcy, including your home, car, household goods and tools of the trade. There are monetary limits on these things but it is all property you get to keep.
I will never be able to apply for credit again: In fact, the opposite might be closer to the truth. We see many clients who start receiving credit offers shortly after they receive their discharge. The terms aren’t the best but it can be the beginning of starting to rebuild your credit.
If I am married, my spouse and I both must file for bankruptcy: Not necessarily. In many cases it makes sense for both spouses to file but you don’t have to. In fact, there are a number of cases where it makes more sense for just one spouse to file. An experienced bankruptcy lawyer can help you understand the pros and cons of each path.
Contact our office today to set up an appointment. Call (602) 648-3274 or send us an email to get started.
We are a debt relief agency. We help individuals and businesses file for bankruptcy relief under the Bankruptcy Code.