Bankruptcy Myth 6: Filing Bankruptcy Means You’re a Bad Person

Over the years, I have learned that there is a lot of misinformation circulating about bankruptcy. Much of the information is good and gives fair description of how a bankruptcy filing may impact you. However, there is a lot of misinformation or simply untrue information about bankruptcy. The next several blogs will deal with a number of these myths people may read about filing bankruptcy.

Bankruptcy Myth 6: Filing Bankruptcy Means You’re a Bad Person.

FACT: Filing bankruptcy means you’re a good person, acting responsibly. Everyone wants to pay their bills. Everyone. And everyone wants to take care of their family and provide their family with all the things they need. Putting our family first and making the changes necessary to make sure we have a roof over our head, food on the table, and warm clothes to wear is the most responsible thing we can do.

You need to get over blaming yourself. Most of the people who file bankruptcy are good, honest, hard-working people, just like you and me, who file as a last resort after months or years of struggling to pay the bills. You’re completely wrong in thinking that you’re a deadbeat if you file bankruptcy. Filing bankruptcy is actually one of the most positive, responsible, honorable, and noble steps you can take on behalf of your family and your family’s future, happiness, and prosperity.

Bankruptcy Myth 5: You Will Never Get Credit Again

Over the years, I have learned that there is a lot of misinformation circulating about bankruptcy. Much of the information is good and gives fair description of how a bankruptcy filing may impact you. However, there is a lot of misinformation or simply untrue information about bankruptcy. If the next several blogs, will deal with a number of these myths people may read about filing bankruptcy.

Bankruptcy Myth 5: You Will Never Get Credit Again.

FACT: FILING BANKRUPTCY MAY BE THE BEST THING THAT EVER HAPPENS TO YOUR CREDIT. Filing bankruptcy gets rid of debts you can’t afford. Besides, having less debt to pay after a bankruptcy makes you look more attractive to banks, credit card companies, and other lenders. In my experience, unfortunately, it won’t be long before you’re getting credit card offers again.

How Can I Afford a Bankruptcy Lawyer?

One of the biggest mistakes that people make when filing for bankruptcy is to choose to represent themselves. Many people erroneously think, “I can barely afford to pay my bills, therefore how could I ever afford an attorney?” The truth is, failing to hire an attorney during bankruptcy can expose you to a myriad of negative consequences – some of which could prohibit you from re-filing. While it may seem like an impossibility at the time, there are actually many different ways that you can afford a bankruptcy attorney. A skilled lawyer will work with you to determine a payment plan that best fits your needs.

Your Creditors are Actually Paying Your Attorney’s Fees

When thinking about attorneys’ fees when filing for bankruptcy, you must alter your thinking. In a certain sense, your creditors will be the ones footing the bill for your bankruptcy filing. Most attorneys will instruct you to stop making payments on the majority of your outstanding debts prior to filing for bankruptcy. In essence, the money you would have otherwise paid to just paying off your creditor’s interest will now instead be paid to an attorney. This money would be far better spent to retain the services of an attorney who can work to eliminate your debt for good, rather than just paying off interest and barely making a dent on your principal.

Additionally, the fees required to file for bankruptcy are different depending on the specifics of the case and the area in which they are filed. In many cases, attorneys offer payment plans to help make it easier to cover these costs over time. In most Chapter 13 bankruptcy cases, attorneys’ fees can actually be incorporated into your repayment plan.

Struggling with Debt? Call (817) 285-8017

If you are struggling to make ends meet and are in need of financial relief, the award-winning Fort Worth bankruptcy lawyers at The Pritchard Law Firm can walk you step-by-step towards a financially secure future and work out a payment plan that is custom-tailored to your pace. Unlike other firms, we charge a flat fee for our services, ensuring there are no surprise costs.

Schedule a free consultation or contact our office online today to get started.

Three Common Myths About Bankruptcy

Bankruptcy can be a frightening concept at first glance. Due to its social stigma of being associated with failure and shame, many people have shied away from ever considering bankruptcy as a viable solution for their debt. This is simply not true! Bankruptcy is an honorable and completely legal option for financially struggling Americans to start fresh, providing much needed relief from harassing collection calls. To help clear up some confusion, our firm has put together a list of common bankruptcy myths.

1. “I Can Never Get a Credit Card Again”

Many people believe that they will never again be approved for a credit card once they have filed for bankruptcy. The reality is quite the opposite: many people receive credit card offers almost immediately after completing the bankruptcy process. While access to certain cards will be limited, you will certainly be able to get a low-limit credit card. Using a credit card after bankruptcy is vital to helping you rebuild your credit score and improve your options for future auto and home loans. With that being said, excessive credit card spending is the reason why many people find themselves in financial straits in the first place, making it imperative that you spend with caution.

2. “I Will Lose Everything”

Yet again, this one is false. During Chapter 7 bankruptcy only non-exempt property will be subject to being claimed by creditors. While the exact amount of property you will be able to keep will vary depending on your marital status, a surprising amount of your assets will be off-limits from creditors.

Texas offers generous exemptions during bankruptcy, allowing you to keep:

  • Your home
  • Your retirement assets
  • Your vehicle
  • Your equity in your home
  • Up to two firearms
  • Your clothing
  • Up to $100,000 of personal property

If you are filing for Chapter 13 bankruptcy, you will be able to keep nearly all of your assets. As opposed to the liquidation process of Chapter 7, Chapter 13 bankruptcy involves creating a three-to-five-year repayment plan. An experienced attorney can examine your situation and determine which option best fits your individual needs.

3. “Everyone Will Know I Have Filed”

Despite bankruptcy’s completely legal nature, many people feel ashamed of their filing and are fearful of having anyone find out about their struggles. The only people who will know you have filed for bankruptcy are your creditors, your lawyer, and anyone who you choose to tell. While bankruptcy is a matter of public record, the sheer amount of filings that occur make it so only those who are specifically interested in uncovering your past are likely to discover your filing. Unless you live a life in the public eye, your chances of having anyone find out about your bankruptcy filing are slim.

Contact The Pritchard Law Firm Today

If you are struggling with debt, a highly knowledgeable Fort Worth bankruptcy attorney from The Pritchard Law Firm can walk you through the process of filing for bankruptcy and guide you towards a financially sound future. With more than 45 years’ of combined experience, we can provide the skilled and compassionate representation you need to help you get through this difficult time.

To find out more about what our award-winning lawyers can do for you, call (817) 285-8017 to request a free consultation today!