Gregory & Clark, PLLC Articles Common Bankruptcy Myths

Common Bankruptcy Myths

By Gregory & Clark  Nov. 3, 2010 9:53a

The term bankruptcy has long carried with it a social stigma. Good people who have worked very hard to maintain their credit and financial obligations have done everything in their power in order to maintain a good credit standing, yet are now challenged with the insurmountable task of keeping their fico score at the top. With the economy in the dumps and unemployment rates sky high, more people are facing challenges they couldn't have possibly prepared for. Bankruptcy isn't a dirty little word; it offers a way out for honest people who have suffered from underemployment or unemployment. With changes in laws, comes misinterpretations and confusions, here are some common bankruptcy myths explained:

Myth: Tax debts cannot be included in bankruptcy.
Fact: As long as the tax debts are three years old from the date of filing, they can be included in the bankruptcy.

Myth: Since bankruptcy laws changed in 2005, the laws have become too difficult and I won't qualify.
Fact: The changes in the laws have had little effect on people's ability to file for bankruptcy.

Myth: I will lose everything, including my home and my car.
Fact: Debtors who file for bankruptcy are allowed many exemptions which include protections for vehicles, equity in their primary home and retirement investments.

Myth: If I file, I will never be able to get a credit card again.
Fact: Many credit card companies actively pursue individuals who have a bankruptcy discharge. The interest rates will be higher and the credit lines will be lower, but with timely payments, you will slowly see your credit score improve.

Bankruptcy is a viable solution that offers individuals and families a way out and hopes for a brighter future. If you are overwhelmed with debt, an Orlando bankruptcy attorney at Gregory & Clark, PLLC can help. We can help explain your options and determine if bankruptcy is the right decision for you and your family.

Contact an Orlando Bankruptcy Lawyer at our firm today for a free case evaluation if you are considering filing for bankruptcy.

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