Dispelling Bankruptcy Myths
Few areas of law are more misunderstood than bankruptcy. It’s important to have a clear picture of what bankruptcy is — and what it’s not — so you can make wise decisions on how to proceed.
At Wootton & Wootton, P.C., a bankruptcy law firm in North Carolina, you can expect to receive a realistic explanation of how bankruptcy can help your situation. During your free consultation with one of our attorneys, you can get answers to all of your questions about the bankruptcy process.
Below are some common myths we encounter about consumer bankruptcy.
Myth 1: Bankruptcy will permanently ruin my credit.
If you’re considering bankruptcy, your credit has probably already hit rock bottom. Bankruptcy gives you the opportunity to rebuild your credit by getting rid of unpayable debts. Contrary to popular belief, bankruptcy won’t stay on your credit forever. You can still get access to car loans, mortgages and credit cards after filing bankruptcy.
Myth 2: I’ll lose my home, my car and all my property.
Many people worry about losing their property during bankruptcy. The reality is that bankruptcy can help you keep your property. It’s rare to lose anything during bankruptcy. On the contrary, filing bankruptcy immediately stops foreclosure proceedings, car repossession, wage garnishment and collection lawsuits.
Myth 3: My employer, relatives, friends and neighbors will all find out.
Nobody wants their private financial affairs to become public knowledge. Fortunately, we don’t live in a nation where debtors are publicly shamed. Bankruptcy involves only you, your attorney, the court and the creditors. There’s no reason for anyone else to know about it unless you tell them.
Myth 4: I’ll have to spend a lot of time in court.
The prospect of appearing before a judge is understandably intimidating. Fortunately, much of the bankruptcy process takes place on paper, not in the courtroom. In Chapter 7 bankruptcy, you will likely not have to go to court at all. In Chapter 13, most people only have to go to one court hearing, and your attorney will be your voice and advocate the entire time.
Myth 5: I’ve already filed bankruptcy once before, so I can’t do it again.
There are no limits on how many times you can file bankruptcy. We routinely work with people who are filing for the second, third or fourth time. However, you may have to wait a certain number of years before benefiting from the advantages of bankruptcy again. Our lawyers can walk you through the time frame that applies to your situation.
Don’t let bankruptcy myths hold you back from making the right decision about your situation.
To learn more about bankruptcy, call our offices in Henderson or Durham at 919-794-8660
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.