Common Bankruptcy Myths
Bankruptcy and Debt Relief in Central New York and the Southern Tier
There are many common bankruptcy myths that circulate through word of mouth, on the Internet and even in financial publications. These myths are not only false, but also discourage people from filing for bankruptcy.
At the Consumer Bankruptcy Law Center of Peter A. Orville, we believe in educating our clients in bankruptcy law and debtor's rights, while presenting them with an honest assessment of their situation.
To get a free copy of ”What You Need to Know About Filing Bankruptcy,” written by Peter A. Orville, call 1-888-228-3094 today.
Here are some common bankruptcy myths:
- People who file for bankruptcy have done something wrong: There is no basis for this claim, which is false and unfair to consumers. People in every socioeconomic bracket file for bankruptcy and are typically honest and hardworking individuals who have fallen upon hard times or taken deals from unscrupulous creditors. In fact, the right to file bankruptcy is found in both the Bible and the U.S. Constitution.
- Creditors may still call after I've filed for bankruptcy: Filing for bankruptcy provides an automatic stay against creditor collection actions. This means that as soon as a person files for bankruptcy, a hold is put on all outstanding debts and any attempts to collect those debts by creditors. If a creditor does contact a debtor, tries to repossess an asset or collects on the debt during the automatic stay, the person, through their attorney, may file a lawsuit to collect monetary damages. Our office has been very successful in collecting damage awards of several hundred to several thousand dollars for our clients from creditors who violate the automatic stay.
- I can only file for bankruptcy once: Many people believe if they have filed for bankruptcy in the past that they are no longer eligible to file again. While there are limitations as to future filings for bankruptcies, a person may file for bankruptcy even if done so in the past.
- My credit will be ruined if I file for bankruptcy: While a bankruptcy will be listed on your credit report, this does not mean that your credit will be ruined for an extended period of time. Generally, people who consider filing for bankruptcy already have a tarnished credit record, which will continue to get worse as they put off filing. After filing bankruptcy and receiving your discharge, your credit report is wiped clean. People who have filed may begin to rebuild their credit almost immediately and many even get a mortgage within a couple years of filing and a loan or credit card even sooner.
Do not let these or other myths regarding bankruptcy prevent you from getting the financial help that you deserve. Contact a lawyer at our firm today and ask us what filing for bankruptcy can do for you. We offer a free initial consultation to clients in Binghamton, Syracuse and the surrounding communities of Central New York and the Southern Tier.
Call us at 607-821-2463 or toll free at 866-935-7708
for consumer bankruptcy protection and debt relief.
For more detailed information about bankruptcy, visit the Bankruptcy Law Network web site.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
