Find Out The Truth About Bankruptcy Myths
At Lanser Law Office in Waukesha, we are not only advocates for our clients, but we also clear up any and all bankruptcy myths, including those listed below. To further discuss any of these issues, call our office today at 262-522-2280 to arrange a meeting with an attorney. We represent clients in the Milwaukee area and throughout southeastern Wisconsin.
Myth — Bankruptcy will destroy my credit.
Bankruptcy will affect your credit, but how much and for how long will vary greatly from person to person. A Chapter 7 bankruptcy, for example, will be on your credit report for 10 years. But that does not mean you cannot get credit after your bankruptcy. It is important to be informed about steps that can be taken post-bankruptcy to rehabilitate your credit. At a minimum, a discharge in bankruptcy gives an opportunity to start over in terms of building credit.
Myth — If I file bankruptcy, I will lose everything.
It is not uncommon for people to worry that they will lose all their assets in a bankruptcy, which is simply not true. The good news is that you will not have to give up everything to file bankruptcy. Bankruptcy allows for people to exempt certain possessions from being included in the bankruptcy estate. The bankruptcy exemptions protect a value of your assets, such as your home, car and household goods.
Myth — I can get rid of all my debts.
No. Whether your debts will be dischargeable or not depends on the type of debt and how it was incurred.
Some debts are automatically not dischargeable, meaning that the creditor does not have to formally contest the dischargeability. Common examples in Chapter 7 cases include trust fund taxes, certain income taxes, child support, maintenance, property division, student loans, criminal fines and restitution, traffic tickets and debts for personal injury resulting from drunk driving.
Other debts may be discharged unless the aggrieved creditor takes affirmative steps to object to the dischargeability based upon fraud or willful and malicious injury. There are also circumstances under which the overall discharge can be denied, meaning that NONE of the debts are discharged.
Myth — I can only file bankruptcy once.
Simply put, you may file bankruptcy more than once, but there are rules related to the filing frequency of Chapter 7 and Chapter 13 bankruptcies. For example an individual can receive a discharge in a Chapter 7 bankruptcy only once every eight years. Other restrictions apply on receiving a discharge in both Chapter 7 and Chapter 13 where a bankruptcy of either type was previously filed.
Myth — I’ll be fired from my job if I file bankruptcy.
A provision in the Bankruptcy Code will protect you from employment discrimination solely based on being a debtor filing bankruptcy.
Myth — I cannot file bankruptcy unless I have a certain minimum amount of debt.
There is no minimum amount of debt to file bankruptcy. If you cannot afford to pay your debts as they come due then bankruptcy may be an option that you at least ought to explore.
Myth — Everyone will know if I file bankruptcy.
Many people have fears about friends and neighbors finding out if they filed bankruptcy. While bankruptcy filings are public record, a certain amount of effort is required to access that information and most people are not inclined to expend that effort unless they have a particular reason or unless they are involved in some way. Individual bankruptcy filings are not generally newsworthy so it is unlikely that your bankruptcy filing will be published by the newspapers.
Get Straight Answers About Bankruptcy — Call Lanser Law Office Today
Do you have more questions about bankruptcy? The anxiety you are feeling right now is partly due to a lack of knowledge and the lack of a game plan. Let us educate you.
If you are considering bankruptcy, get the straight story from lawyer, Bruce A. Lanser. When you meet with Attorney Lanser, he will review your situation with you and give you candid recommendations.