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Should I File?

Bankruptcy Lawyer in Los Angeles

Bankruptcy Lawyer Serving Clients in Los Angeles

When facing an overwhelming amount of debt that you just don't know how to handle, it is vital for you to fully understand your legal rights and options. Pacific Attorney Group is happy to answer your questions by offering a free initial consultation with a Los Angeles bankruptcy lawyer.  We have compiled a list of common Bankruptcy Myths that many people believe are true, which we can assure you are not what you can expect to occur in your bankruptcy.

Filing bankruptcy will hurt your credit for 10 years

If you were behind on many of your payments your credit was likely already adversely affected.  Although the bankruptcy will appear on your credit report for 10 years, it does not necessarily mean your credit will be negatively affected for that period of time.  Once the filing is final and as time passes and you re-establish credit, your score will likely go up over time.

If you are married, both spouses have to file for bankruptcy

This is not so.  Each person can file or not, depending on their level of debt.  If you are both having difficulty paying your debts, it is wiser to file together as the fee is usually the same.  But if one files and the other doesn't, this will not affect the spouse's credit rating unless they have joint credit.

Everyone will know you have filed for bankruptcy

Although Bankruptcy filings are public record, the likelihood of anyone actually finding out about yours is astronomically low, as the number of case filings each month is huge.  It is highly unlikely anyone will ever know unless you tell them.

Everything you own will be taken away from you.

This is absolutely not true.  Although you will give up certain assets, many are protected by Bankruptcy laws.  Standard items exempt from being part of the bankruptcy include such things as your home, family heirlooms, retirement savings and your car just to name a few.

You will not be able to buy things again

Again, absolutely not true.  Once your bankruptcy filing is complete you can purchase whatever you want if you can afford it.  You likely will still be able to even qualify for certain credit cards, although likely with higher interest rates

You will not be able to get credit again.

As mentioned above, this is not true.  As filing bankruptcy gets rid of debt, this puts you in a position to handle more credit.  Lenders will see this as an advantage but it's not always a good thing. The offers for credit cards and car loans will come at a higher interest rate.  And since you can't file for bankruptcy again for several years, it is wise to be extremely careful on how you obtain and use credit after your bankruptcy.

It's difficult to file for bankruptcy

If you have an experienced bankruptcy attorney it is not difficult at all.  The decision to do so may be hard, as you need to carefully review your options and make the decision to finally do it.

You can only file for bankruptcy protection once

You can only file for a Chapter 7 bankruptcy once every 8 years. As for filing a case under Chapter 13 there is a limitation on how long after your prior one is discharged before being able

You can get rid of all of your debts through bankruptcy.

Unfortunately, this is not the case.  Although you can discharge quite a few types of debt, certain ones such as child support, alimony, taxes and student loans are still owed.

You can't get rid of back taxes in bankruptcy

In some cases, you are able to eliminate taxes that are over 3 years old.

Consult a Los Angeles Bankruptcy Attorney

Get the truth about your bankruptcy from an experienced and knowledgeable bankruptcy attorney.  Contact us today for your free consultation.