If I had a nickel for every bankruptcy myth I have heard from clients (and even from other “bankruptcy attorneys”) I could buy the IDS building in downtown Minneapolis. Here are some of the most common:
You have to be sued before you can file bankrupcty – FALSE. A client can file bankruptcy when it is most beneficial to the client.
You have to be 3 months behind on your bills before you can file bankruptcy – FALSE. Again, a client can file whenever it is best for the client to file. I have had many many clients who ere 100% current on their bills but could see the writing on the wall.
You can only file bankruptcy once in your lifetime – FALSE. Repeat filings are allowed. A client can file Chapter 7 every 8 years. A client can file a Chapter 13 after a Chapter 7 at any time. No one encourages needless bankruptcy filings in Minnesota, but sometimes a client has no choice, and the law allows repeat filings.
You cannot apply for new credit for 10 years – FALSE. Clients who seek credit soon after filing bankruptcy usually get it. Click here to learn how to rebuild your credit after bankruptcy.
You can’t discharge medical bills in bankruptcy – FALSE. Medical bills are a major reason why many clients file bankruptcy. There are very few non-dischargeable debts. Most debt that can’t be wiped out include student loans, child support obligations and taxes, though sometimes even these can be dealt with in bankruptcy.
I will lose assets – FALSE. As discussed on the Exemptions portion of my website almost 100% of clients lose nothing, and keep everything.
The Bankruptcy Court rejects most filings – FALSE. The vast majority of cases are not rejected. It is extremely unusual that a client gets a fight in their case. I can usually tell after the initial consultation whether a client faces issues, and can discuss strategies to deal with those issues.
These are just a few of the many myths I have heard. If you are uncertain about how bankruptcy might effect you call me and your case will be carefully analyzed.
Together we can get you back in charge of your finances.
I am recognized as a debt relief agency, and provide bankruptcy relief using the laws of the State of Minnesota and the United States Bankruptcy Code.