If you’re discussing bankruptcy with other individuals, they might share inaccurate information that could confuse you. Bankruptcy lawyers often clear up misconceptions people have about bankruptcy that discourage them from seeking debt relief they need. The facts below dispel a few popular myths and might help you decide whether bankruptcy is the right solution for your money problems.

Myths & Misconceptions Surrounding Bankruptcy

1. File Bankruptcy & You’ll Lose Everything

Bankruptcy is a way of unloading debt and getting a fresh start, and in most circumstances, you can keep what you own. Under chapter 7, straight bankruptcy, you receive certain exemptions that protect items such as personal property, jewelry, household goods, and even a car or home in some situations. Chapter 13 enables you to keep mortgaged property and cars secured by loans by making payments to creditors under a court-approved plan over three to five years. 

2. You Can’t File Bankruptcy By Yourself if You Are Married

Anyone can file bankruptcy as an individual, whether you are married or single. It’s up to you and your spouse whether only one person needs to file or filing as a couple is better. If you have large dischargeable debts jointly, such as credit card debt or signature loans, a joint petition may be your best option.

3. Creditors Can Still Come After You if You File Bankruptcy 

Whether you file a chapter 7 or chapter 13 bankruptcy, all creditors and their representatives must stop all contact collection activities. Once you file, an automatic stay takes effect immediately and protects you from all debt collectors’ contact. Review your petition carefully with your bankruptcy lawyer to make sure all your creditors are listed. The protection and debt discharge won’t apply to creditors you leave off, even if by mistake.

When you’re overwhelmed with unpaid bills and aggressive debt collectors, you want accurate legal information and strong advocacy from a reliable source. At Padgett & Robertson, Attorneys at Law in Mobile, AL, the experienced bankruptcy lawyers offer sound, individualized legal advice and skilled, passionate representation. They are dedicated to protecting clients’ interests and helping them achieve long-term debt relief. To find out more about their consumer bankruptcy services, visit their website. For a free consultation appointment, call (251) 342-0264.

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.

We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.