Debunking the Myths Surrounding Bankruptcy
March 9, 2023 By: Carrie Weir
Correcting the Common Falsehoods about a Bankruptcy Filing
You may be struggling to make ends meet, with no relief in sight, but steadfastly resisted the urge to file bankruptcy because of what “everybody says” about the process:
- You’ll lose all your property
- You’ll never be able to buy anything on credit again
- You won’t qualify
- Only irresponsible people file for bankruptcy
Don’t believe the misinformation you hear on the street or from anyone who’s never filed for bankruptcy. Most of the inaccurate statements about the bankruptcy process come from business lobbies and others who want to keep you from exercising your rights. Here’s what you really need to know:
- You won’t have to give up all your property when you file for protection—Every state has exemptions and so does the federal government. While you must choose one or the other, you’ll still be able to hang on to substantial assets. In Texas, which has very generous exemptions, there’s a good possibility that you’ll be able to keep most, if not all, of your property.
- Your creditworthiness may take a brief hit, but, in the long run, you’ll probably find it easier to get credit—Sure, potential creditors will look at your credit score, but they’ll also consider the fact that you’ve taken steps to improve your financial situation. Additionally, you may be able to discharge some debts, making it easier to pay your obligations.
- Very few people will be disqualified from filing either Chapter 7 or Chapter 13—To qualify to discharge debts under Chapter 7, you must submit to means test, demonstrating that you lack the income or resources to repay creditors through a Chapter 13 reorganization. If you don’t meet the requirements to file Chapter 7, you can still reorganize your debts under Chapter 13, unless your total secured and unsecured debt exceeds $2,750,000 at the date of filing.
- Bankruptcy is not a sign of failure—Many famous Americans, from Walt Disney to Abraham Lincoln, sought protection in bankruptcy. It’s a time-honored means of helping folks get a fresh start in the wake of unforeseen circumstances.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.