California Bankruptcy and Debt Relief Attorney
When you come to the Law Offices of Brian A. Barboza in Santa Rosa, we will take great care to educate you about what bankruptcy can and cannot do. We know there are a lot of myths out there that can cause people to hesitate in filing bankruptcy, potentially missing out on an opportunity to help them overcome their debt sooner than later. We take the time to debunk those myths. Some of the common myths include:
Myth: Filing Bankruptcy Will Ruin Your Credit
You have no need to worry about your credit after a bankruptcy. If you are considering bankruptcy, you are probably already dealing with late payments, missed payments and defaults on your credit report, all of which are strikes against you. Bankruptcy wipes the slate clean. Suddenly your income-to-debt ratio looks a lot better, which is a positive.
Myth: You Will Lose All Your Property
In Chapter 7 bankruptcy, you may have to give up some of your property in certain circumstances. This is actually very rare, though. In Chapter 13 bankruptcy, you do not lose any property at all. Your car, house and other property are most likely safe.
Myth: You Do Not Qualify for Bankruptcy
If you are overwhelmed by debt and having trouble making ends meet, you most likely are eligible for bankruptcy. Changes to the bankruptcy law in 2005 introduced the means test, but did not disqualify people who truly need the relief bankruptcy provides.
Contact Us for a Free Initial Consultation
What bankruptcy myths have you heard? Let our bankruptcy lawyer debunk them. Contact our Santa Rosa office for a free initial consultation.
