Bankruptcy has become a reality for many Americans following the Great Recession. You may be aware that in recent years bankruptcy rules have changed substantially; for many this fact has led to some unfortunate misinformation. Your Bryan bankruptcy attorneys can provide specific answers to questions you may have, but the following corrects some of the main myths that have developed about bankruptcy.
Myth: Filing bankruptcy is a reflection on my character.
Fact: You should not feel like a failure because you have to file bankruptcy. Many financial issues can necessitate filing, such as an unexpected medical event that leaves you with debt that is beyond your ability to repay.
Myth: A bankruptcy will remain on my record for 10 years.
Fact: While the public record of a Chapter 7 bankruptcy will remain for 10 years, every other reference to your bankruptcy will only remain on your report for 7 years. In addition, the fact of having a bankruptcy on your record does not mean you will be unable to obtain credit for 7 years. Indeed, many people are able to obtain a secured credit card within a year or two, and unsecured loans, car loans, and even possibly a mortgage within this 7 year period.
Myth: If I file Chapter 13, I have to repay all of my debt.
Fact: Each Chapter 13 bankruptcy is different, but generally you will be required to pay on your debt for a specified number of years, after which the remainder will be forgiven.
Myth: I cannot file bankruptcy if I have a job.
Fact: While a job loss can lead to the need to file bankruptcy, there is no requirement that you be unemployed to file.
Myth: My credit score will remain low as long as the bankruptcy is reflected on my credit report.
Fact: While the presence of a bankruptcy notation on your credit report will affect your credit score, over time this will have less impact as you obtain credit and pay off debts responsibly.
Myth: If I file a Chapter 7 total liquidation bankruptcy I will lose all of my valuable possessions.
Fact: Most people who file Chapter 7 lose little, if any possessions. You are allowed to keep a car in most cases, and you may even be able to keep your home.
For Help with Your Bankruptcy
Bankruptcy can be a complicated process, and if you make a mistake it can prove very costly. It is in your best interests to work with Bryan bankruptcy attorneys when seeking a bankruptcy. Call Peterson Law Group today at 979-703-7014 or 936-337-4681.
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