Switch to ADA Accessible Theme
Close Menu
Southeast Iowa Personal Injury Attorney
  • Auto Injury?
  • Injured At Work?
  • Debt Relief?

Get Back On The Road To Freedom!

Free No Obligation Consultation

Local: 641-472-3236

Toll Free: 800-875-7148

  • Facebook
  • Twitter

Exposing Common Bankruptcy Myths

Bankr29

When contemplating whether to file for bankruptcy, many people feel worried or scared because of what they read or heard about bankruptcy. For example, you might have heard or read that you will never obtain credit again if you file for bankruptcy. Such information can scare you and make you forgo this debt relief option.

As much as the internet, your friends and family have information that could benefit you; it is important to keep in mind that some of the things you read or hear about bankruptcy are not accurate. Creditors also promote bankruptcy myths, and, maybe, whatever you heard about bankruptcy that left you worried came from one of your creditors. As much as it can be scary to think about filing for bankruptcy, believing myths about bankruptcy only make the thought more frightening.

There are countless bankruptcy myths, and discussing them all in one article is almost impossible. Nonetheless, below are three of the most common bankruptcy myths.

Bankruptcy Myth #1: Bankruptcy Hurts Credit Permanently

Bankruptcy does not hurt credit permanently. Even though bankruptcy stays on people’s credit reports for up to 10 years, it will not ruin your credit permanently.

Immediately after filing, you can begin rebuilding your credit. You might be shocked by how fast you can improve your credit score and access credit. There are many ways of rebuilding credit such as;

  • avoiding overspending,
  • getting a secured credit card, and
  • paying bills on time.

Bankruptcy Myth #2: Married Couples Must File for Bankruptcy Together

If you are married, your partner does not have to file for bankruptcy just because you are filing.

Bankruptcy laws allow you to file for bankruptcy alone without involving your partner. If you are the only one who owes creditors, meaning the debts are not joint debts, your partner will not need to file. However, if you and your wife or husband have joint debts, it might be a wise idea to file together.

Consult a qualified attorney if you are confused about whether to file alone or with your spouse.

Bankruptcy Myth #3: Bankruptcy Laws Make it Hard To File

Some people believe that bankruptcy laws make it hard for debtors to qualify for bankruptcy. While it is true that you need to meet certain qualifications before you can file for bankruptcy, it is not true that bankruptcy laws make it hard to file. According to the law, if you want to file for Chapter 7 bankruptcy, you need to pass the means test. Nonetheless, even if you fail the test,  you can try the Chapter 13 option. Just because laws control who qualifies for which option does not mean it is hard for debtors to file.

Others feel that the bankruptcy process is too complicated; therefore, it is impossible to successfully file. As much as the bankruptcy process can be complicated, you will not have to deal with the complicated parts when you work with a qualified attorney.

Contact a Southeast Iowa Bankruptcy Attorney Today

Do not let bankruptcy myths prevent you from considering bankruptcy as your debt relief option. If you doubt something you have read or heard about bankruptcy, consult a qualified Southeast Iowa bankruptcy attorney to receive clarification. Contact the Noyes Law Office, P.C., today to schedule a consultation.

Resources:

law.cornell.edu/wex/means_test

uscourts.gov/services-forms/bankruptcy

Share This Page:

$1

Million

Wrongful death. A 35 year old married mother of two killed.

$812

Thousand

Rear-End Motor Vehicle Accident.

$650

Thousand

Settlement for spouse of deceased worker.

$575

Thousand

Confidential Premises Liability Settlement.

$500

Thousand

Auto accident with resulting post-concussive head complications.


$350

Thousand

Injury from work with complications after surgery.

$300

Thousand

88 year old man rear ended.


$190

Thousand

Workers Compensation Settlememt. Bilateral carpal tunnel injury.

$190

Thousand

Read-End Accident with Tinitus Diagnosis.

$185

Thousand

Injured back.


$180

Thousand

Workers Compensation and PI Settlement. Slip and Fall with a broken arm and torn rotator cuff

$175

Thousand

Slip and Fall. Broken leg of a 67 year old.

$160

Thousand

Slip and Fall. Broken hip of 83 year old woman.

$155

Thousand

Non-displaced fractured hip.

$100

Thousand

Aggravation of degeneration disk disease.

$97

Thousand

Bilateral carpal tunnel.


$85

Thousand

32 year old man hit while on moped. Contusion resulting in chronic regional pain syndrome.

$80

Thousand

Fractured wrist and sprained back.

$75

Thousand

Car vs. Pedestrian. Policy limits for sprained knee.

Contact Form Tab