There are many myths associated with bankruptcy that frequently prevent people from filing who would otherwise benefit from bankruptcy protection. Debunking these myths and educating people on the benefits of bankruptcy is one my primary jobs as a lawyer and is something that I do on a daily basis in my practice.
Myth #1 — I Will Never Get Credit Again.
False. While a bankruptcy may be listed on your credit report, it will be largely overshadowed by the positive impact a bankruptcy could have on your credit. There is no law that prevents you from obtaining new credit after your bankruptcy discharge. Anyone who wants to extend you new credit may extend it.
Since you will no longer have large amounts of debt to pay off, your disposable income will increase and you will begin to rebuild your credit. Additionally, late payments and defaults that were listed on your credit report will now be removed. Many people who have filed for bankruptcy have been able to get credit fairly soon after their debts are discharged, including credit cards, loans and other lines of credit.
With more than 30 years of experience handling bankruptcy matters throughout Bucks County as well as the surrounding counties, I am familiar with these and other myths surrounding consumer bankruptcy. My name is Josh Goldblum, and at my firm, I will give you honest answers about your situation.
Myth #2 — I Will Lose Everything That I Own.
False. In many cases, the bankruptcy law is fairly generous as to what you are allowed to keep and what property of yours is considered exempt from the bankruptcy process.
Your house, your car and your retirement accounts may be kept, even after filing for Chapter 7 bankruptcy. Of course, in order to keep them, you will have to remain current on your mortgage and car loan payments. After discharging credit card debts and other debts in a bankruptcy, however, it is usually easier to make timely payments for these important bills.
Myth #3 — Creditors Are Still Allowed To Harass Me After I File For Bankruptcy.
False. After filing for bankruptcy, an "automatic stay" is put on all collection activities against you. Your creditors will not be allowed to call you, write you, or sue you.
In fact, this "automatic stay" prohibits any contact from a creditor to you about your bills. If a bill collector violates this law, you may be able to hold the creditor liable for contempt of court. The Bankruptcy Court can impose punitive damages, including fines and other penalties, for not following the Bankruptcy Code. Creditors must leave you alone from the moment after you file for bankruptcy.
Have Other Questions?
I'm Joshua Z. Goldblum, Attorney at Law. Learn more information about Chapter 7 and Chapter 13 bankruptcy by contacting my firm in Feasterville, Pennsylvania, and talking with me about your financial and family problems. Send me an email or call my office at 215-322-2745 to schedule a free initial consultation. I work with many people in northeast Philadelphia to resolve their financial and family law problems.
My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.