Filing for Bankruptcy in Collin County
For so long there has been a negative perception about filing for bankruptcy. People don't always realize that the government created the Bankruptcy Code as a safety net for hard-working Americans who have been caught off guard by mounting debt from credit cards, medical bills or loans. As an experienced McKinney debt relief lawyer, I'd like to take a moment and dispel 10 misconceptions about bankruptcy that tend to come up over and over again.
Misconceptions About Bankruptcy
- Only financially irresponsible people need to file for bankruptcy. Wrong. Each year millions of Americans file for bankruptcy. People are caught off guard by sudden medical expenses, the loss of a job or other factors outside of their control. The government has put together the Bankruptcy Code so that people can get out from under their crushing debt and work towards a fresh start.
- Everyone will know you filed for bankruptcy. Wrong. It is true that bankruptcy is a matter of public record, but in a practical sense, the only people who will know are the people you choose to tell. As your attorney, I am bound by confidentiality. You can choose to be as open or quiet as you feel comfortable.
- You will ruin your credit rating forever. Wrong. Certainly, your credit rating will take a hit when you file for bankruptcy. But, honestly, your credit rating was already being penalized by late fees and overdue bills. Those challenges will quickly go away, and you can begin rebuilding your credit rating almost immediately. Through a consultation, I can even offer some easy tips to rebuilding your credit.
- You and your spouse have to file together. Wrong. In many cases, it makes sense for a husband and wife to file together, but it is certainly not required.
- Only credit card debt is eliminated in bankruptcy. Wrong. Most forms of unsecured debt (such as credit card debt, medical bills and many types of loans) can be discharged or eliminated through bankruptcy. There are also types of debt that cannot be eliminated such as student loans and court-ordered child support payments. As soon as you schedule an appointment with my office, I can explain this in more detail.
- You will lose all of your assets and property. Not true. Many assets can be exempt during the bankruptcy process. In most instances, you are able to keep you home, car and other valuables like clothing and jewelry. Once we begin a more detailed examination of your finances and your unique situation, I can tell you more about exempt status and the steps you need to take to protect your assets.
- You can only file bankruptcy once. Wrong. A combination of Chapter 7 and Chapter 13 allows for re-filing in a short period, but there are certain time limits. For example, a certain amount of time must pass after you file for Chapter 7 before you can file for Chapter 13 and vice versa. Through our meetings, we can discuss all the possible timelines that might affect you.
- Creditors will still harass you even after you file. They certainly shouldn't. Filing for bankruptcy gives you something called an automatic stay. It means that you are working with the government to fix your financial situation. You might get called one time by a creditor, but as soon as you tell them you've filed for bankruptcy, they have to go through me to get to you.
- Filing for bankruptcy will destroy your family. Quite the opposite. Filing for bankruptcy alleviates much of the stress and worry that tends to tear marriages apart. With that stress gone, it is time for you and your spouse to begin creating a more stable financial future.
- Filing for bankruptcy is a long and complicated process. Not in the right hands. If you have an experienced attorney guiding you through the process, filing for bankruptcy becomes a very straight-forward thing. Individuals tend to get confused when trying to file the paperwork on their own. Having a qualified representative on your side makes a lot of sense.
You're scared that your future will be ruined and scared of the stigma attached to the whole filing process. I hope that I've shown you that there is nothing to worry about. I will work with you every step of the way to ensure your filing is accurate, timely and complete. I'll be there right by your side.
Schedule an appointment with my office, and let's put you on the right path.
Contact My Office
If you have questions regarding the myths about bankruptcy, contact my office online or by calling 972-542-1325. Do not hesitate to schedule a free initial consultation with me, Susan B. Sweeney, P.C.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
