Atlanta Bankruptcy Attorneys

Top Ten Bankruptcy Myths

If you are considering filing for bankruptcy, you might have a lot of questions, many of which will relate to things you have heard about bankruptcy. A lot of people talk about bankruptcy, but many of these people have no experience or knowledge about the subject, which leads to a number of myths about the process. At The Stadler Law Group, we want you to help you sort the facts from the fiction so you can make the most responsible decisions about your bankruptcy. If you still aren't sure about a specific issue after looking around on our site, please call our office and schedule a consultation with a skilled Atlanta bankruptcy attorney. We look forward to helping you.

Myth #1: Your credit can never be repaired
Filing for a bankruptcy will harm your credit, but rebuilding is entirely possible, particularly with smart, controlled spending. If you have any questions about rebuilding your credit after declaring bankruptcy, talk to your Atlanta bankruptcy attorney.

Myth #2: Filing for bankruptcy may improve your credit
Even if your FICO score goes up after a bankruptcy, filing will never help your credit. A bankruptcy leaves a black mark to your credit report that surpasses any credit score.

Myth #3: You can erase your debts without paying anything
If you do not pay your debts, you will lose your property. There is no way around this simple fact. Whether you choose a structured repayment plan via Chapter 13 or a liquidation bankruptcy from Chapter 7, your creditors will receive payments you owe.

Myth #4: You will lose all of your valuable property
When you file Chapter 7, your property is sorted into classes and then values for each class will be estimated. You will then be allowed to choose two classes of the property to keep. In many cases, you can even keep your house.

Myth #5: Only deadbeats need bankruptcy protections
Most people who file for bankruptcy are hard-workers who have hit upon a stroke of bad luck that left them with unexpected loss of income or expenses. Most bankruptcies by private parties are a result of medical bills.

Myth #6: You can have all debts discharged
Only some types of debt can be discharged. If you owe child support, alimony, fines from a criminal conviction, delinquent taxes, student loans or other expenses, these types of debts cannot be

If you have any questions, contact an experienced Atlanta bankruptcy attorney.