Dispelling Common Bankruptcy Myths

Filing for bankruptcy is a valuable tool for relieving debt, but many people who could benefit from bankruptcy fail to do so each year. Common misconceptions abound and frequently dissuade families from improving their financial future. Before you decide whether to file, you should fully understand the bankruptcy process and its legal implications. At the Law Office of Kenneth Gallant, I inform my clients on all aspects of debt relief to help them fully explore their legal options. Below, I compiled four common myths and explain the reality behind each.

Call my law firm today at 585-232-7560 to discuss your debt relief options with a capable attorney. For your convenience, I have offices throughout the Rochester, New York, area.

Top 4 Bankruptcy Myths Explained

At the Law Office of Kenneth Gallant, I provide clients with the pros and cons of filing for bankruptcy to help separate myth from fact. My goals are to partner with you to identify the right debt solution and for you to have the information you need to make an informed decision for your family. Common bankruptcy myths include:

  • Bankruptcy myth No. 1: Filing for bankruptcy permanently destroys your credit score.
  • The facts: Opportunities to rebuild your credit are usually available immediately after you file for bankruptcy. Bankruptcy does initially lower your credit score, but if you pay your bills on time and adhere to other simple strategies, your credit will rebuild over time.
  • Bankruptcy myth No. 2: The government will repossess all of your property if you file for bankruptcy.
  • The facts: Most people who file for bankruptcy do not lose any property. Both Chapter 7 and Chapter 13 bankruptcy were designed as tools to provide for a sound financial future, not to strip you of necessary assets.
  • Bankruptcy myth No. 3: You must be able to pay back all of your debt if you file for Chapter 13 bankruptcy.
  • The facts: While some people have to pay back 100 percent of their debt, many only pay back 20 percent or even less. The court evaluates your total level of debt, income and other key factors to determine the amount of your discharged debt. The debts you have to pay will be organized into a manageable three- to five-year repayment plan.
  • Bankruptcy myth No. 4: People who file for bankruptcy are lazy or immoral.
  • The facts: Most bankruptcies result from a job loss, divorce, medical crisis or some other unforeseen setback. The overwhelming majority of people who file are well-meaning people who just need a chance to get back on their feet.

While these are some of the common misconceptions I hear on a regular basis, this is not an exhaustive list. There are many places to discover information about bankruptcy, but not all of them are accurate. If you have any questions about debt relief, please meet with me to discuss the specifics of your circumstances. As your bankruptcy lawyer, I can provide personalized counsel that charts a course for a better financial future.

Call To Discuss Your Debt Relief Options

If you are struggling with overwhelming debt or have questions about the bankruptcy process, I am here to help. Contact my law firm online or by telephone at 585-232-7560 or toll free at 855-232-9200 to schedule a free initial consultation with an experienced attorney. I will meet with you personally in one of my conveniently located law offices.

My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.