What You May Not Know About Bankruptcy
Until they are faced with a bankruptcy, most people's knowledge of bankruptcy is based on what they've seen on TV or heard from friends. Unfortunately, some of that knowledge may be incorrect. A chapter 7 or chapter 13 bankruptcy can be a powerful tool for people to get a financial fresh start.
From my Portland, Oregon, law office, I help individuals and small-business owners determine whether or not bankruptcy is right for them and if it is, make sure that it is done as properly and promptly as possible.
Common Bankruptcy Myths and Misconceptions
The following ideas are all incorrect common beliefs about bankruptcy. As your bankruptcy lawyer, I will help you through everything you need to know and educate you about the process, its advantages and disadvantages.
Bankruptcy will ruin my credit rating. This is a common bankruptcy myth and is not necessarily true. In some cases, your rating may improve because you no longer have any debt. I can discuss this with you.
Bankruptcy will wipe out all my debts. Not necessarily true. Some debts such as back taxes, school loans, past due child support, past due alimony and other debts still must be paid. Some school loans can be discharged (liquidated) in bankruptcy if we can show "undue hardship." I have experience with this legal action.
Bankruptcy will wipe out all my credit card debt. Not necessarily. If you have a special "secured" type of credit card, the creditor can still put a lien on your property. This bankruptcy myth is why it is important to provide an attorney with a thorough listing of all debts.
Bankruptcy will prevent a repossession. Bankruptcy has the power to block a repossession, at least temporarily. If your debt is "secured," a bankruptcy will eliminate the debt, but does not necessarily remove the secured lien. Typically to retain secured capital, i.e. a car or home, a payment plan must be reached. I will be happy to explain the fine details of what can and cannot be repossessed.
Bankruptcy can stop a mortgage foreclosure. A chapter 13 bankruptcy can force the lender to accept a plan where you make up the past due payments and put the mortgage into the repayment plan. Talk to me about your options to save your home.
Because I focus on bankruptcy law as a legal area of practice, I am very familiar with the requirements and the changes that resulted from the Bankruptcy Abuse Prevention and Consumer Act of 2005.
Call 888-429-9637 for a Free Initial Phone Consultation
I offer a free initial phone consultation for potential bankruptcy clients and would be happy to discuss bankruptcy misconceptions and bankruptcy myths with you. My law office is conveniently located in Portland, Oregon, although I represent clients from a much wider area. Send me an e-mail if you need a lawyer's help with your debt issues.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
