Bankruptcy Myths

Phoenix Bankruptcy Lawyers

When it comes to the topic of bankruptcy, there are numerous myths.  These myths are usually created by people who do not fully understand the general process or bankruptcy law.  Below are some of the most common myths Bankruptcy Helpers encounters while working with clients:

• Bankruptcy does not appear on your credit report.  This is completely false.  After a person successfully files for bankruptcy, the bankruptcy will appear on his/her credit report for 7 to 10 years, pending on the type of bankruptcy the person filed for.
• You can never get a credit card after you file for bankruptcy.  This is not true as more and more lenders are making exceptions to the rule when it comes to bankruptcy and extending credit.  Often times, people are able to obtain credit cards after they file for bankruptcy, but their credit lines may be lower and/or their interest rates may be higher.
• All debts are discharged after a person files for bankruptcy.  This information is incorrect.  If a person owes child support or has student loans, their debt will not be discharged and they will still be responsible for paying what they owe.
• You can file for bankruptcy as often as you like.  People cannot continually file for bankruptcy.  In fact, in order for people to meet bankruptcy eligibility requirements, they must not have filed for bankruptcy in the past 8 years.  It would be impossible for a person to file for bankruptcy again and again.
• I will lose everything I own.  This is not always the case even though people tend to believe it is.  Many times, people are able to avoid losing their homes, vehicles and other types of property.  This is especially true for people who work with skilled bankruptcy attorneys instead of filing for bankruptcy on their own.

The Phoenix Bankruptcy Law Firm assists individuals who are looking to file for bankruptcy in Phoenix and surrounding areas in Arizona such as Tuscon, Mesa, Glendale, Tempe and Prescott.