Bankruptcy can be a frightening concept at first glance. Due to its social stigma
of being associated with failure and shame, many people have shied away
from ever considering bankruptcy as a viable solution for their debt.
This is simply not true! Bankruptcy is an honorable and completely legal
option for financially struggling Americans to start fresh, providing
much needed relief from harassing collection calls. To help clear up some
confusion, our firm has put together a list of common bankruptcy myths.
1. "I Can Never Get a Credit Card Again"
Many people believe that they will never again be approved for a credit
card once they have filed for bankruptcy. The reality is quite the opposite:
many people receive credit card offers almost immediately after completing
the bankruptcy process. While access to certain cards will be limited,
you will certainly be able to get a low-limit credit card. Using a credit
card after bankruptcy is vital to helping you rebuild your credit score
and improve your options for future auto and home loans. With that being
said, excessive credit card spending is the reason why many people find
themselves in financial straits in the first place, making it imperative
that you spend with caution.
2. "I Will Lose Everything"
Yet again, this one is false. During
Chapter 7 bankruptcy only non-exempt property will be subject to being claimed by
creditors. While the exact amount of property you will be able to keep
will vary depending on your marital status, a surprising amount of your
assets will be off-limits from creditors.
Texas offers generous exemptions during bankruptcy, allowing you to keep:
- Your home
- Your retirement assets
- Your vehicle
- Your equity in your home
- Up to two firearms
- Your clothing
- Up to $100,000 of personal property
If you are filing for
Chapter 13 bankruptcy, you will be able to keep nearly all of your assets. As opposed
to the liquidation process of Chapter 7, Chapter 13 bankruptcy involves
creating a three-to-five-year repayment plan. An experienced attorney
can examine your situation and determine which option best fits your individual needs.
3. "Everyone Will Know I Have Filed"
Despite bankruptcy’s completely legal nature, many people feel ashamed
of their filing and are fearful of having anyone find out about their
struggles. The only people who will know you have filed for bankruptcy
are your creditors, your lawyer, and anyone who you choose to tell. While
bankruptcy is a matter of public record, the sheer amount of filings that
occur make it so only those who are specifically interested in uncovering
your past are likely to discover your filing. Unless you live a life in
the public eye, your chances of having anyone find out about your bankruptcy
filing are slim.
Contact The Pritchard Law Firm Today
If you are struggling with debt, a highly knowledgeable Fort Worth bankruptcy
attorney from The Pritchard Law Firm can walk you through the process
of filing for bankruptcy and guide you towards a financially sound future.
With more than 45 years’ of combined experience, we can provide
the skilled and compassionate representation you need to help you get
through this difficult time.
To find out more about what our award-winning lawyers can do for you, call
(817) 727-4001 to
request a free consultation today!