Bankruptcy Myths

Debunking Stereotypes of Bankruptcy

There are a lot of myths surrounding bankruptcy and the benefits that filing can have. If you are considering filing for a Chapter 7 or Chapter 13 bankruptcy, it is important that you contact a Wayne County bankruptcy attorney from Bryant Logan Law Group, PLC. At our firm, we are dedicated to our clients and helping them debunk the various myths and stories that they may have heard surrounding bankruptcy. We want to ensure that when you enter into bankruptcy that you are confident in your filing. Below you will find a list of some of the common myths and misunderstandings that revolve around bankruptcy, but if you find that you still have questions after reading through, do not hesitate to contact our Wayne County bankruptcy lawyers right away.

Only irresponsible people file for bankruptcy.

No! Financial problems can happen to anyone at any time. With the recent downturn of the economy, a lot of individuals struggled to find work and make ends meet. Other people simply became unable to work because of injury or illness, and when coupled with high medical costs, were simply unable to pay back their debts. Divorce, death, illness or injury, job loss, and a number of other situations can cause individuals, families, and businesses alike to have to file for bankruptcy. It does not mean you are a "bad" person, it simply means you are taking active steps to regain control of your financial independence.

Bankruptcy will destroy my credit for the rest of my life.

While bankruptcy will stay on your credit for a few years, you can take immediate steps to rebuild your credit after your file for bankruptcy. At Bryant Logan Law Group, PLC, we will help you learn what life will be like after bankruptcy and provide a solid foundation to help you regain control of your financial future.

Filing for bankruptcy will only anger collectors.

When you file for bankruptcy, you will have an immediate stop placed on all collection attempts; creditor harassment will be required to stop. If you are still contacted by the collection agencies after you file, you can direct them to your attorney. It is important to remember that you are protected under the law from threats or force acted upon or suggested by creditors; if you are being threatened, you need to contact an attorney.

All my debts will be discharged when I file for bankruptcy.

While bankruptcy does offer relief from non-secured debts, all secured debts will remain intact. Secured debts may include things such as back-owed taxes, child or spousal support, court fees, and student loans.

My spouse and I have to file jointly for bankruptcy.

No, filing for bankruptcy does not always mean that your spouse will have to file for bankruptcy as well. If you and your spouse have a joint-debt, such as mortgages and auto loans, it may be recommended that you both file for bankruptcy. Our attorneys can help determine the best course of legal action for you.

If I file, I will have to go to court.

Not necessarily. Bankruptcy is generally an administrative process and you may not have to go to court. When you file, you will be required to meet with creditors, but these meetings are usually short and to the point. If you, however, do have to go to court, you can rest assured that your Wayne County bankruptcy lawyer will be by your side the entire time, should you choose to work with Bryant Logan Law Group, PLC.

Everyone will know that I have filed for bankruptcy.

Bankruptcy is public record, but not everyone needs to know about it. In fact, in order to look into records, individuals need to know the exact case number; most people will simply not want to go through that much trouble. Unless you are already having wages garnished from your paycheck, your employer will not know of your bankruptcy-friends and neighbors do not have to know either. Some lenders, creditors, and banks may look into your past, but your bankruptcy does not have to be public knowledge.

I am facing foreclosure, filing can't help me now.

If you are facing foreclosure or know that foreclosure is imminent, filing for bankruptcy can actually stop the foreclosure process. Because an automatic stay is placed onto all accounts, collectors cannot repossess your property or foreclose your home. In some situations, banks may try to file a motion to continue the foreclosure process, but it is generally not granted in a quick time frame. The amount of time that you have after you file can be used to regain control of your finances and save your home from foreclosure.

When I file, I will lose my home, car and all possessions.

No! When you file for bankruptcy under Chapter 13, you will be able to retain all your possessions, property and assets and still pay off debts. Under a Chapter 7 bankruptcy, all non-exempt assets may be sold (such as second properties or vacation homes) but your main residence and car will not be sold.

"I am facing bankruptcy; I can't afford to hire an attorney!"

You can still afford to work with an attorney if you are financially strapped. At Bryant Logan Law Group, PLC, we are dedicated to our client's wellbeing and ensuring that we provide only the best available representation to our clients in their time of need. We are proud to offer free case evaluations to all clients and affordable services that can help you, your family, or your business receive the leg-up that you need in your financial situation. Searching for a lawyer for your bankruptcy in Wayne County, MI? If you have questions or concerns, do not hesitate to contact a Wayne County bankruptcy lawyer today and schedule your evaluation as soon as possible.