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Myths About Bankruptcy

Don't believe everything you hear, especially when it comes to bankruptcy. Whether it comes in the form of information on the Internet, conversations with well-intentioned family members, or the advice of friends or strangers, incorrect information about bankruptcy is abundant. If you are considering bankruptcy as a solution to your debt problem, make sure you have the facts straight so you can make a good decision for yourself and your family.

Is Bankruptcy Right for Me?

Each person's personal and financial situation is unique. As a Florida attorney with more than 30 years of bankruptcy experience, I can help you decide whether bankruptcy is right for you. To that end, I can help you address common misconceptions and myths about bankruptcy, including the following:

  • Bankruptcy is for people in dire straits. Bankruptcy is not just for those considered poor or uneducated, or for people who have low or moderate income. Countless historical figures, celebrities, corporations and even cities have used bankruptcy to address debt that they were unable to overcome on their own. In fact, many people who file bankruptcy have high income and significant assets.
  • You can only file bankruptcy once. Bankruptcy is a serious matter that should be addressed carefully. However, while certain restrictions apply, a consumer can generally file a subsequent Chapter 7 eight years after a first Chapter 7 or four years in the case of a Chapter 13.
  • My credit after bankruptcy will be destroyed. To be sure, a bankruptcy filing has an adverse impact on a person's credit score in the near term. However, in the months following a bankruptcy, many consumers find that they can finally afford to pay all their bills on time, which is ultimately good for their credit and their ability to borrow.
  • Bankruptcy will impact my credit score for 10 years (or 7 years). A bankruptcy filing can be mentioned on a credit report for several years, but that doesn't necessarily affect your credit score or your ability to borrow. In many cases, individuals who file bankruptcy can obtain a federally funded mortgage or a vehicle loan within three years.

Bankruptcy is powerful, and it is supported by federal law and rooted in the U.S. Constitution. A Chapter 7 or Chapter 13 bankruptcy filing can stop creditor harassment and put an end to wage garnishment and other hardships, but it is not appropriate for everyone. It is essential to talk to a qualified lawyer about your circumstances if you are considering bankruptcy.

Contact the Firm

Searching for a Tallahassee attorney for filing bankruptcy? Contact me, attorney Tom Woodward, to get your questions answered.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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Thomas Woodward Law Firm, PLLC
104 West 4th Avenue
Tallahassee, FL 32303
Phone: 850-296-1344
Fax: 844-741-5720
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