Bankruptcy Myths

Happy Thursday all! I’m back again with another one of my debunking blog posts. Today, we are going to delve into the world of bankruptcy myths as I break down myth vs. reality. Don’t forget that while there are many forms of Bankruptcy, Marcie Baker only specializes in Chapter 7 Bankruptcy.

MYTH: If I file for bankruptcy, my spouse will have to file too.

-REALITY: This is definitely a concern of many people considering filing for bankruptcy. However, those who file have the option to file jointly or just on your own. This determination is up to you and is evaluated on a case-by-case basis. Factors such as the amount of the debt, various income sources, and whether the debt is held jointly or not will be factors that will help determine the best way to file for your case.

MYTH: All of my debt is going to disappear.

-REALITY: Unfortunately, though we would all like our debt to disappear, (wouldn’t that be nice?), filing for Ch. 7 Bankruptcy does have some debts that survive filing such as most taxes, student loans, child support, criminal restitution, overpayment of benefits, and some others.

MYTH: I already filed for bankruptcy; I won’t be able to file again.

-REALITY: Chapter 7, which Marcie specializes in, allows applicants to be eligible to apply for Ch. 7 Bankruptcy every eight years from the date of your previous filing. If you have an immediate need to file again before the Ch. 7 time period is up, there are a couple ways to find relief.

According to Acclaim Legal Services, “If it has been over four years since your Chapter 7 filing:

· You may be eligible to eliminate a portion if not the majority of your unsecured debt obligations with a Chapter 13 discharge.

If it has been less than four years since your Chapter 7 filing:

· You may still be eligible to file a Chapter 13 and reorganize debt, but you are not eligible to discharge debt.”

MYTH: It’s hard to file for bankruptcy

-REALITY: The paperwork is relatively easy to access and there are a number of people who have done so completely on their own. However, those who do file without consulting an attorney risk filing under the wrong chapter or may unknowingly mess up. Even though the paperwork can often be filed on your own, we highly recommend that you consult with an attorney before filing for bankruptcy.

MYTH: Filing for bankruptcy means that my life is a failure.

-REALITY: So not true! Most people file bankruptcy due to circumstances in their lives that are simply out of their control. This could be anything from job loss to sickness, and more people have filed for bankruptcy than you think.

And, if you are still feeling skeptical, go read an older blog post of mine that talks about all of the famous people who have applied for bankruptcy and the lessons they learned!

I hope you all learned something about bankruptcy and found this blog helpful. If you, or someone you know is struggling with a bankruptcy matter, please contact our office to schedule a free consultation. Remember, Marcie specializes in Chapter 7 Bankruptcy, so, for all your Ch. 7 issues, she’s the one you want to talk to!

***The thoughts, facts, and opinions in this blog post do not constitute legal advice and should not be used as such. If you have any questions related to Bankruptcy or another legal matter, please contact our office.

Sources: https://bankruptcy-toledo.com/bankruptcy-myths/ 

https://www.abi.org/feed-item/the-top-9-bankruptcy-myths

 https://acclaimlegalservices.com/bankruptcy/questions/dispelling-bankruptcy-myths.html