Bankruptcy: Myths and Facts
At Robert P. Laney Law Firm we want to help dispel some of the myths associated with bankruptcy. See a running list of myths we have encountered over the years.
With the new laws in effect since 2005, filing bankruptcy is much more difficult and offers far less relief than before.
While the new laws put into effect in 2005 have introduced some changes, bankruptcy remains the best debt relief option for many situations.
Everyone will know I've filed for bankruptcy.
Unless you're a renowned person or a large corporation and the filing is picked up by the news, chances are very good that the only people who will know about a filing are your creditors. While it's pue that bankruptcy is a public legal proceeding, very few publications have the space, the manpower, or the inclination to list all of them.
All debts are wiped out in Chapter 7 bankruptcy.
Certain types of debts cannot be erased. They include child support, alimony, and student loans.
I'll never get credit again.
It won't be long before you're getting credit card offers again. Although they'll just be from lenders that will charge higher interest rates. If you have a credit card with a zero balance on the day you file for bankruptcy, you don't have to list it as a creditor since you don't owe any money on it. That means you might be able to keep that card, even after the bankruptcy.