Bankruptcy Myths

Bankruptcy Myth One: I cannot file for chapter 7 bankruptcy anymore.

  • False. Actually, chapter 7 bankruptcy is the most common bankruptcy case that is filed today.  Although there was an income test that was implemented in 2005, the income test did not affect most cases.

Bankruptcy Myth Two: I am going to lose my house, car, retirement accounts and other valuable property if I file for bankruptcy.

  • False. The law allows you to keep certain property deemed “exempt”. These assets cannot be liquidated or seized in most circumstances.

Bankruptcy Myth Three: I will never be able to buy anything again.

  • False. After your debt is discharged, your credit score will begin to improve. Rebuilding your credit will happen faster than you think. Generally, you can qualify for a home mortgage loan approx. two years after your discharge as long as you are able to make on-time payments after your bankruptcy.

Bankruptcy Myth Four: My employer will fire me.

  • False. Federal employment laws protect you from job discrimination based on bankruptcy filing status.

Bankruptcy Myth Five: I cannot afford to file for bankruptcy.

  • False. At Westbrook Law Group, LLC, we have very competitive rates and even payment plans in some circumstances.