Learn The Truth About Bankruptcy
At the law offices of Edwin M. Shorty Jr. & Associates, in New Orleans, Louisiana, our attorneys talk to people everyday who come into our offices with misunderstandings about what bankruptcy is — and isn’t — and how it will ruin their lives if they file.
The truth is bankruptcy laws were set up by the earliest Congress as a means to help Americans get a second chance from their debts. Here are some basic myths that we want to correct. If you have further questions or are still not sure whether filing is the right option for you, we invite you to call our offices at 504-207-1370 to schedule a free initial consultation.
Bankruptcy Myths We Want To Set Straight
Myth 1: You will lose your house and car.
Reality: Many people are able to avoid home foreclosure and car repossession. When you file, you will have the opportunity to “reaffirm” certain debts. That means you agree to continue making your monthly house payment and car payment on time. Talk to us to see whether keeping your house and car is really the best option for your debt circumstances, though. For some people, it may not be the right decision.
Myth 2: You will never get credit again.
Reality: Most people begin getting credit again within two years after filing bankruptcy. Yes, you will pay a higher interest rate as a higher risk customer, but you can begin building up your credit score again. Look at it this way, after you wipe off all or most of your other debt, in time, creditors will have higher confidence that you will make your monthly payments on time.
Myth 3: Your bankruptcy will be reported to your employer.
Reality: Bankruptcy proceedings are public, yes, but unless you report the filing yourself, most employers will not find out about your credit history. For highly compensated management executives, some corporations are beginning to check credit scores. That does not typically apply for most workers, however.
Myth 4: The Chapter 7 bankruptcy “means” test means most people don’t qualify.
Reality: The means test weighs your debts against your income and assets. A very high majority of people still qualify for Chapter 7. In the event you don’t qualify, there is always the Chapter 13 options, which may be a better option for you, anyway.
Contact Us For More Information
Learn more by sitting down and talking to one of our lawyers about your situation. We represent clients throughout the New Orleans metropolitan area. We are confident we can help you get the fresh start you need and deserve. Call us at 504-207-1370 or contact us by email to arrange a free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.