Giving You the Facts About Bankruptcy
At Lanser Law Office in Waukesha, Wisconsin, we are not only advocates for our clients, but we also clear up any and all bankruptcy myths, including:
Bankruptcy no longer exists.
This is one of the most common bankruptcy myths. Prior to the laws changing in 2005, some bankruptcy attorneys implored potential clients to file bankruptcy while they still could, suggesting that their bankruptcy options were about to expire. This simply was not true. The current bankruptcy law is complex and makes filing challenging, but bankruptcy remains a viable option for many.
Bankruptcy will destroy my credit.
Your credit will be affected. Major credit may be temporarily unavailable to you, such as a mortgage and business loan. But the competitiveness of the lender market could bring you offers of car loans and credit cards.
If I file bankruptcy, I can keep my home and my car.
Your home and car are not necessarily protected from the bankruptcy trustee. You get to keep your assets based upon their value, the dollar amounts of the liens against them and the available exemptions. For any assets that are subject to a lien, arrangements for repayment of the debt will likely need to be made.
I can get rid of all my debts.
No. Many debts are not dischargeable. While there are often exceptions to the exceptions, non-dischargeable debts may include taxes, school loans, support/maintenance obligations, traffic tickets, criminal fines, debts for personal injury resulting from drunk driving, debts resulting from fraud or intentional conduct and others.
I can only file bankruptcy once.
There are rules related to the filing frequency with regard to Chapter 7 and Chapter 13 bankruptcy. Simply put, you may be able to file more than once.
I'll be fired from my job if I file for bankruptcy.
A provision in the Bankruptcy Code will protect you from employment discrimination solely based on being debtor filing for bankruptcy.
I cannot file bankruptcy unless I have a certain minimum amount of debt.
There is no particular amount of debt that qualifies for bankruptcy. If you cannot afford to pay your debt based on the terms and conditions set by the creditor, then bankruptcy may be a viable option.
Contact Us
For more information or to schedule an appointment with an experienced lawyer regarding bankruptcy myths, please contact us at the law office of Bruce A. Lanser.
