Bankruptcy Myths

When you come to the Law Offices of Brian A. Barboza in Santa Rosa and San Rafael, 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 causing them to miss out on an opportunity to overcome their debt sooner than later. We take the time to debunk those myths.

Please read some of the following bankruptcy myths and call our law offices at 707-304-5251 or toll free at 866-965-2831 to arrange a consultation.

Some of the common myths include:

Myth: Filing bankruptcy will ruin your credit.

Truth: 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. After you have filed bankruptcy, you will likely have a firmer grasp on your finances and a brighter outlook on your financial future. You will learn that you can soon obtain credit and will likely make many efforts to maintain it.

Myth: You will lose all your property if you file for bankruptcy.

Truth: 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. We understand that you may be fearful about losing your belongings. We will walk you through the bankruptcy process and help you understand the exemptions.

Myth: You make too much money and do not qualify for bankruptcy.

Truth: If you are overwhelmed by debt and having trouble making ends meet, you most likely are eligible for bankruptcy. Bankruptcy reform, including changes to the bankruptcy law in 2005, introduced the means test but did not disqualify people who truly need the relief bankruptcy provides.

Myth: The harassing phone calls from creditors will never stop.

Truth: When we petition the court for bankruptcy on your behalf, the court will file an automatic stay. This will put an immediate halt to creditors' attempts to collect the debt.

Contact Us For A Free Initial Consultation With A California Bankruptcy And Debt Relief Attorney

What bankruptcy myths have you heard? Let our bankruptcy lawyer debunk them. Contact our Santa Rosa or San Rafael office for a free initial consultation.

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