Bankruptcy Myths

Dispelling Bankruptcy Myths

Beaumont Bankruptcy Attorneys at Packard & Packard, PLLC

When handling bankruptcy cases, we strive to provide legal guidance based on integrity and professionalism. We work hard to provide our clients with reliable information regarding the bankruptcy process. Many people have been misinformed by well-meaning friends or acquaintances. Below are some bankruptcy myths and facts we have encountered.

Myth 1: I will lose all my personal property and assets.
In both Chapter 13 and Chapter 7 bankruptcies, much or all of your property and assets may be exempt. Powerful exemptions exist both under federal and state law. These exemptions may provide the protection you need. If some of your property is non-exempt, Chapter 13 bankruptcy may still allow you to keep that property.

Myth 2: I will be stuck with bad credit.
Bad credit can happen for a variety of reasons. While bankruptcy certainly may severely hurt a credit rating, other factors, such as late or missed bill payments do so as well. If you find yourself unable to stay on top of your debts, your credit rating may already have been damaged. Without closure and finality to your debts, these debts can continue to damage your credit for years. Bankruptcy may bring finality to your debt problems. Once the bankruptcy process is complete, you may start rebuilding your credit.

Myth 3: I will still lose my home.
Bankruptcy provides powerful exemptions that may allow you to keep your home. If you are behind on your mortgage payments, Chapter 13 bankruptcy may allow you to catch up on your mortgage over time.

Myth 4: I don't need a bankruptcy lawyer because I can file on my own.
While it is true that you may file for bankruptcy without legal assistance, doing so is very risky and could lead to disastrous results. You may be at a higher risk of having your case denied, delayed, or worse. Click here for some reasons why you should consider retaining legal representation.

Call Packard & Packard, PLLC Today

We will handle your case with care and diligence. If you are thinking about filing for bankruptcy in Beaumont, contact us as soon as possible.

Click here to learn more about the benefits of bankruptcy.

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