Bankruptcy Myths
1. Myth: The 2005 Bankruptcy law overhaul eliminated the “no payment” Chapter 7 option.
Fact: Although there are more hoops to jump through the “no payment” Chapter 7 still exists.
2. Myth: If I file bankruptcy I will lose my house, car, and retirement.
Fact: Most Bankruptcy clients lose nothing except their debts.
3. Myth: The Court will come to my house and look around.
Fact: The Court almost never visits your house.
4. Myth: Everyone will find out when I file bankruptcy.
Fact: Filing bankruptcy is public record, but newspapers generally do not publish a list.
5. Myth: If I file bankruptcy I will not be able to get credit again.
Fact: Many bankruptcy filers are able to get an unsecured credit card shortly after filing.
6. Myth: My creditors will be at my bankruptcy meeting.
Fact: Creditors rarely attend creditor meetings.
7. Myth: I will be fired if I file bankruptcy.
Fact: Employers are not allowed to fire you simply because you filed bankruptcy.
8. Myth: If I file bankruptcy, my spouse has to file with me.
Fact: Your spouse does not have to file bankruptcy with you.
9. Myth: My debts can’t or won’t be discharged.
Fact: Most debts except student loans, recent tax debt, debts incurred via fraud, and domestic support obligations are discharged in bankruptcy.
10. Myth: My creditors will continue to harass me after filing bankruptcy.
Fact: Creditors can be sanctioned by the Court for attempting to collect discharged debt.
Fact: Although there are more hoops to jump through the “no payment” Chapter 7 still exists.
2. Myth: If I file bankruptcy I will lose my house, car, and retirement.
Fact: Most Bankruptcy clients lose nothing except their debts.
3. Myth: The Court will come to my house and look around.
Fact: The Court almost never visits your house.
4. Myth: Everyone will find out when I file bankruptcy.
Fact: Filing bankruptcy is public record, but newspapers generally do not publish a list.
5. Myth: If I file bankruptcy I will not be able to get credit again.
Fact: Many bankruptcy filers are able to get an unsecured credit card shortly after filing.
6. Myth: My creditors will be at my bankruptcy meeting.
Fact: Creditors rarely attend creditor meetings.
7. Myth: I will be fired if I file bankruptcy.
Fact: Employers are not allowed to fire you simply because you filed bankruptcy.
8. Myth: If I file bankruptcy, my spouse has to file with me.
Fact: Your spouse does not have to file bankruptcy with you.
9. Myth: My debts can’t or won’t be discharged.
Fact: Most debts except student loans, recent tax debt, debts incurred via fraud, and domestic support obligations are discharged in bankruptcy.
10. Myth: My creditors will continue to harass me after filing bankruptcy.
Fact: Creditors can be sanctioned by the Court for attempting to collect discharged debt.
*11 U.S.C. 528(a)(4) NOTICE. We are a debt relief agency. We help people file for bankruptcy relief under the federal Bankruptcy Code.