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mythsThere are many negative perceptions about bankruptcy. On one hand, some of these perceptions are well-deserved. After all, there are some potential drawbacks to filing. Yet there are also some major misconceptions about bankruptcy—some of which could keep someone from filing when they really should. The following information is designed to debunk these bankruptcy myths. It may even help you decide what your next step should be, and if bankruptcy might be the right solution for you.

Myth 1: Bankruptcy Ruins Your Credit Forever

True, your credit can take a hit after filing for bankruptcy, and it may be difficult to obtain new lines of credit once the process starts, but bankruptcy does not completely ruin your credit. If anything, it gives you a clean slate to start over. It is also usually less damaging than continuing to make late payments on your debts. If you are still a little apprehensive about filing, talk to a qualified bankruptcy attorney for a comprehensive analysis of your financial situation.

Myth 2: You Lose All Your Personal Property

Many people think you have to give up everything in bankruptcy, but this is not always the case. In fact, bankruptcy is designed to help protect some of your possessions from creditors. Furthermore, you may be able to keep some of your unprotected items by agreeing to continue paying on them. Do not expect to keep it all, just do not expect to lose it all either.

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Texas bankruptcy lawyer, TX chapter 7 attorneyAt our firm, we help clients every day with questions and concerns about the bankruptcy process under the U.S. Bankruptcy Code. Our experience has shown us that bankruptcy proceedings are often misunderstood, and unfortunately, misinformation abounds among those considering filing for bankruptcy. If you are thinking about bankruptcy as an option for your situation, it is very important for you to fully understand the potential advantages and disadvantages, as well as what might happen after the proceedings are complete. With this in mind, here are three of the most common myths about bankruptcy, along with the truth about each one.

Myth # 1: My Employer Will Be Notified That I Filed for Bankruptcy

Financial struggles are embarrassing for many people, and the reasons are understandable. As a result, it might be humiliating for you if your employer were to be notified of your bankruptcy filing. The good news is that this myth—albeit common—is just that: a myth. The bankruptcy process does not involve any employer notification whatsoever unless you happen to owe a formal debt to your employer somehow—in which case your employer would be notified, but as a creditor. Bankruptcy filings are public record, which means they could technically be published by the press, but it is unlikely that your employer would have much interest in searching through such publications.

Myth # 2: I Will Never Get Credit for a for a Major Purchase Again

Filing for bankruptcy can certainly have a negative effect on your credit rating, but the effects are temporary. Your bankruptcy will not bar you from ever having the ability to secure credit for major purchases like a home or automobile. For most bankruptcy filers, the credit approval needed to secure a home loan would be possible in about two to three years from the date of their bankruptcy filing. Obtaining approval for car loans and credit cards generally take less than two years. What is most important in re-qualifying for credit is making sure that you are rebuilding your credit properly in the period following your bankruptcy filing.

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Posted on in Bankruptcy

Texas bankruptcy lawyerMost of the time when you are dealing with legal matters, it is not a simple situation to be in. This is especially true when it comes to bankruptcy. In the United States, there are a handful of different types of bankruptcies that individuals can qualify for, each with their own stipulations and requirements for eligibility. Even beginning the process of determining whether or not you are eligible for bankruptcy can be confusing, especially when there are so many myths and misconceptions surrounding this topic. Here are three of those myths and the actual truth behind them.

Only People Who Are Frivolous with Money File for Bankruptcy

While it makes logical sense, it just is not true. Many people get themselves into debt and file for bankruptcy. Sometimes, people think that those who file for bankruptcy just do not want to pay back their debts, but often, it is the opposite. Many people who end up filing for bankruptcy have explored all of their other options and tried almost everything they could to get out of debt before filing for bankruptcy. Courts will not consider:

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