Don't Believe Everything You Hear About Bankruptcy
There are a lot of myths and misconceptions about bankruptcy, and our lawyers hear new ones all the time from prospective clients. The unfortunate thing is that many of these myths prevent people from getting the help they need. The best way to find out whether bankruptcy is right for you is to talk to an experienced attorney.
At O'Bryan Law Offices, we have helped thousands of people in Kentucky and Indiana get out from under crushing debt burdens and then rehabilitate their credit. Contact our law firm for a free consultation about your bankruptcy options. In the meantime, see how many of these bankruptcy MYTHS sound familiar:
- You can't file for Chapter 7 bankruptcy any more. While the Bankruptcy Code was amended several years ago to add means testing for Chapter 7 relief, the opportunity to get a complete discharge of unsecured debt is pretty much the same as it's always been. There are just a few more hoops to jump through.
- Bankruptcy will ruin my access to credit. Bankruptcy improves your credit immediately. Once you get a discharge, you can't get another one for eight years. Most of our clients receive credit card offers shortly after the credit reporting agencies receive word of their bankruptcy cases.
- I won't be able to buy a house or car if I file for bankruptcy protection. Clients who follow our advice about restoring their credit will be able to get car loans and conventional mortgages at standard market rates within two years of discharge under Chapter 7 or Chapter 13.
- If I file for bankruptcy alone, then my spouse will be responsible for my debts. While married couples often file for bankruptcy relief together, they don't need to. Your spouse will only be liable for your debts if he or she actually signed the promissory note.
- Under the divorce settlement, my ex assumed responsibility for our credit card debt. Even though he's in bankruptcy, I'm off the hook. Definitely a myth. The details of a divorce settlement are binding on the divorcing spouses, but not on the creditors. If you were originally liable on the account, you still are unless you were released by the creditor.
This is just a sample of the wrong ideas people have heard about bankruptcy. If you know of other bankruptcy myths, we'd be glad to hear from you. In addition, if you need help with debt problems of your own, we're ready to help. Contact us at O'Bryan Law Offices in Louisville, Frankfort or New Albany for a free consultation.