“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”

STOCKTON

(209) 475-0499

SACRAMENTO

(916) 971-8880

STOCKTON

(209) 475-0499

SACRAMENTO

(916) 971-8880

1. Everyone knows once you file for Bankruptcy

Because bankruptcy is a matter of public record, your name will be filed and available for search. But, because the number of bankruptcy filings is so large, unless someone is specifically tracking you the chances anyone finds out you have filed are very, very low. Unless you are a major corporation or prominent/famous individual and the bankruptcy filing is picked up by the media, the only people who will know are your creditors and the people you tell.

2. You will not be able to own property again

This is a complete falsehood and the opposite is actually true. Because you have filed and addressed your debt situation with your creditors, you will actually be able to own anything you can afford without the fear of your property being seized by creditors.

3. You will never have access to credit again

This is one of the most common myths associated with bankruptcy and we understand why people think they will never have access to credit again, but in reality, it is completely false. The act of filing for bankruptcy allows you to begin the process of rebuilding your credit, which is the only way an individual can regain access to affordable credit. Many individuals have credit available to them immediately after filing, albeit more expensive than they are accustomed, and this access is what allows you to begin rebuilding. it is possible to reestablish good credit in 2 to 3 years and individuals have qualified for FHA home loans in as little as 2 years following a bankruptcy.

4. Your credit score will be ruined for 10 years

This is just about the most ridiculous myth associated with bankruptcy. In many cases, as soon as an individual files and completes bankruptcy, their credit score increases! This is because once an individual has received their discharge, they often times owe no debt, meaning their debt-to-income ratio is now 0, almost certainly better than what is was prior to filing.

5. You Cannot Discharge Medical Bills in Bankruptcy

This is a common myth and we are not exactly sure where it arose from. Although there are certain types of debts that cannot be relieved via a bankruptcy filing, medical bills are not one of them. In fact, unpaid medical bills represent one of the top three reasons individuals file for bankruptcy, and in 2009, over 50% of bankruptcies were attributed to medical bills!

6. Taxes Cannot Be Discharged in Bankruptcy

This is a common myth that represents a half-truth, because there are certain types of taxes that cannot be discharged via bankruptcy. Sales taxes and withholding taxes cannot be discharged, but income taxes that are at least 3 years old qualify as long as they meet an additional set of requirements set forth by bankruptcy law.

7. Bankruptcy is Morally Wrong or an Admission of Failure

Although some cases of bankruptcy may be the result of poor financial decisions or some other failure, the vast majority result from medical bills, job loss and divorce. One study found that 80% of bankruptcies were attributed to one of those three reasons. Do you think its fair to say getting caught in one of those situations was morally wrong or a failure? Bankruptcy does not represent a personal failure or moral short coming, and the aforementioned situations people find themselves in are the exact reason that bankruptcy exists as a financial tool.

If have not filed bankruptcy and you are getting harassed by creditors, call (209) 475-0499 to speak with a Stockton bankruptcy attorney at our firm today.

1151 W Robinhood Dr C8
Stockton, CA 95207 US
(209) 475-0499

Our Stockton bankruptcy attorney helps with Chapter 7 & Chapter 13 Bankruptcy.