Bankruptcy Myths

Many people fail to investigate their options under U.S. bankruptcy laws because they don’t understand the process or they have misperceptions of how bankruptcy will impact their future.

I am Columbus bankruptcy attorney Scott Marlatt. At Marlatt Law Office in Westerville, Ohio, I have helped hundreds of people get a fresh start by filing Chapter 7 or Chapter 13 bankruptcy. I have also counseled many others and determined that bankruptcy was not the best solution for them. I can do the same for you. Call 614-523-3576 to schedule a free consultation.

If you are considering filing for bankruptcy, these clarifications of some common bankruptcy myths should help you feel more comfortable taking advantage of bankruptcy laws.

Myth: Life after bankruptcy is impossible.

Truth: People are often surprised to find out they can improve their credit rating quickly after bankruptcy. Many are approved for a secured credit card or a loan within a year after filing bankruptcy.

Myth: New laws prevent a person from discharging medical bills and credit card debt.

Truth: Unless you have a special “secured” credit card, your credit card balance is an unsecured debt. The creditor cannot repossess your car or any other property if you fail to pay the debt. You can also use either Chapter 7 or Chapter 13 bankruptcy to erase your medical bills.

Myth: I’ll lose everything I own if I file for bankruptcy.

Truth: While it’s true that in both Chapter 7 and Chapter 13 bankruptcies, the debtor may have to turn certain property over to the bankruptcy trustee, there is a list of assets that are usually “exempt.” These can include a motor vehicle (up to a certain value); pensions, 401(k)s and retirement accounts; a portion of equity in the debtor’s home; reasonably necessary clothing and household goods; a portion of unpaid but earned wages. A bankruptcy lawyer can provide you more specific information on asset protection in bankruptcy.

Myth: Filing for bankruptcy can cost you your job.

Truth: A statute under the bankruptcy code prohibits an employment action solely because the individual has been a debtor.

Schedule a Free Consultation to Have Your Bankruptcy Questions Answered

You can get more clarification on these bankruptcy myths or have your other questions answered during a free initial consultation. Call 614-523-3576 or e-mail me to schedule a meeting.

 

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.