Marc A. Hanna "Your Hometown Lawyer"

Bankruptcy Myths

For most of my clients, the difficult part of preparing to file Bankruptcy is getting past what they think they know about Bankruptcy. 
Bankruptcy has a reputation based on a few tidbits of truth and lots of embellishment. And like most things in life, it's not nearly as frightening once you know the truth.

Here are some common misconceptions people have about Bankruptcy:

Everyone will know I've filed for bankruptcy. Unless you're a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors. While it's true that bankruptcy is a public legal proceeding, the numbers of people filing are so massive, very few publications have the space, the manpower or the inclination to run all of them.

Only deadbeats file for bankruptcy. Most people file for bankruptcy after a
life-changing experience, such as a divorce, the loss of a job or a serious illness. They've struggled to pay their bills for months and just keep falling further behind. Bankruptcy provides a fresh start for people from all walks of life; filing for Bankruptcy isn't something to be ashamed of.

I'll lose everything I have. This is the misconception that keeps people who really should file for bankruptcy from doing it. On the contrary, the wonderful thing about Bankruptcy is that you can choose what assets you would like to keep, such as your car, your house, retirement funds and other personal property. If you have a mortgage or an automobile loan, you can keep those as long as you are able to keep making payments on the property.

I'll never get credit again. Quite the contrary. It won't be long before you're getting credit card offers again. Most of my clients are surprised when they receive credit offers immediately after their bankruptcy has been discharged.  The myths and misconceptions surrounding Bankruptcy are astounding to those of us who view it as a positive means of allowing people to start over after a life-changing event.  

Please call me with any questions. I like to give my bankruptcy clients some meaningful information over the phone so that the relief can (hopefully) begin that much sooner.  And, why waste your time and precious gas coming to an office appointment if you don't need to?. The most gratifying thing for me is hearing a client tell me that after talking to me, they were able to get a good night's sleep for the first time in months. 

So, if in doubt, call me for a free consultation at (810) 458-4658               (810) 458-4658     
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