Top Three Bankruptcy Myths Debunked

Top Three Bankruptcy Myths Debunked

If you are considering filing bankruptcy, there are many fears and much misinformation that can cause great concern.  We hope to debunk some of these myths so you can begin the process of getting out from underneath your debt and getting the fresh start you yearn for.

Myth #1 - With a Bankruptcy on my credit report, I will never be extended credit again

While a bankruptcy can stay on your credit report for 7-10 years, once filed, most people will see their credit scores begin to improve as old debts are removed. By the time you consider bankruptcy, typically you have missed payments and your credit score has already been negatively affected. Bankruptcy can help to rebuild your credit after you file.  In fact, many of our clients receive credit card and car loan offers even before their bankruptcy has been successfully discharged.  Acquiring a secured credit card helps to establish new credit as well.  

Myth #2 - I am going to lose all my possessions

This could not be further than the truth.  Depending on the chapter of bankruptcy filed, there are exemptions built into the law.  These exemptions have been created to protect many of your assets. Depending where you live and exactly what you own, many of these possessions (such as your home, vehicle and household items) can be protected in your case.

Myth #3 - Only deadbeats file for bankruptcy

So many of us don’t have the money in our savings to account for any unexpected change in our lives.  Doctors, police officers, pastors and even celebrities have all filed for bankruptcy protection. An accident, sickness, family issue or divorce can send our finances into a downward spiral.  People struggle to pay their bills but sometimes the incident proves to be too much to recover from financially.  

It is important to find a competent attorney who can help you to decide if bankruptcy is the right choice for you.  You want to find an attorney who specializes in Chapter 7 as well as Chapter 13 cases since not one solution fits all situations.  

Attorney John Segaul, has been practicing bankruptcy law for over 25 years. Sitting down to discuss your financial situation as well as your goals with him is the first step in finding the peace of mind that can escape you when the burden of financial debt is weighing you down.  Call for your free consultation today.

Segaul Law Firm

300 S Pine Island Road, Suite 304

Plantation, FL 33324

954-424-3600

www.segaul.com