The Truth About Bankruptcy
Unfortunately, a lot of confusion resulted from the 2005 amendments to the U.S. Bankruptcy Code. This led to a number of bankruptcy myths. Many people falsely concluded that they were not eligible for bankruptcy relief. Other people developed mistaken notions of what bankruptcy can and cannot do.
If you are struggling with debt and wish to speak with an attorney about bankruptcy, contact B&B Law Group in Lutz, Florida. Our experienced bankruptcy lawyers serve clients throughout the greater Tampa Bay area.
Common Bankruptcy Myths
We have provided below some of the most common bankruptcy myths and explanations for why they are false.
Myth: New bankruptcy laws make it almost impossible to obtain bankruptcy relief.
Truth: The majority of people who contact our office qualify for Chapter 7 bankruptcy, and the majority of those who do not qualify for Chapter 7 relief do qualify for Chapter 13 bankruptcy.
Myth: You may not discharge medical bills or credit card debt through bankruptcy.
Truth: Both medical bills and credit card debt may be discharged through a Chapter 7 bankruptcy.
Myth: You may not strip a second mortgage through bankruptcy.
Truth: You may strip a second mortgage lien with a Chapter 13 bankruptcy if the value of your home is less than the amount you owe on your first loan.
Myth: You will lose all of your property if you file bankruptcy.
Truth: Property is not liquidated with Chapter 13 bankruptcy. Certain property may be protected from liquidation in a Chapter 7 bankruptcy. Visit our section on bankruptcy exemptions to learn more.
Myth: Filing bankruptcy will permanently destroy my credit.
Truth: If you are thinking about bankruptcy, you have likely been making late payments on debts for quite some time and may already have a low credit rating. Continuing to make late payments will further damage your credit rating. Bankruptcy may enable you to discharge most if not all of your debts, thus providing you a "clean slate" so you may quickly rebuild your credit, as well as improving your debt-to-income ratio.
Contact Our Tampa Bankruptcy Attorneys to Learn More
We are pleased to offer a free consultation and case evaluation to help you determine if bankruptcy is right for you. We can also help you determine which type of bankruptcy is best for your situation. For help, call us today at 813-333-9583 or contact us by e-mail.
