Since the bankruptcy code and rules are subject to constant change, there are many myths surrounding the process that often deter people who could otherwise have quickly and easily obtained freedom from unmanageable debt by filing bankruptcy. Below you will find some of the most common myths.
Myth #1: I won’t be able to get a house or car after bankruptcy.
Totally false. You will be able to qualify for a mortgage within two years after you receive your discharge. You will be able to qualify to borrow money to purchase a car shortly after filing, depending on your income. I will work with you to rebuild your credit to help you qualify to purchase a house, car or truck.
Myth #2: My bankruptcy case will be published in the newspaper.
Not true. This was the case many years ago, but the only people who will receive notice of your bankruptcy filing are your creditors and court personnel.
Myth #3: I will lose all my property in a Chapter 7.
Again, not true. As I explain here, your Georgia exemptions will protect most of your household goods, and the Chapter 7 Trustee will not be interested in your house or car unless you have substantial equity in the property.
Myth #4: Nobody can file bankruptcy anymore.
This myth was propagated by the 2005 amendments to the bankruptcy code. Many of these amendments made it harder for certain individuals to file Chapter 7 because of the addition of the means test; however, with my help, even high-income individuals may be eligible to take advantage of Chapter 7.
Myth #5: You will lose all your money in your bank account and your tax refund.
Not true. In Georgia cases, you can exempt up to $5,600 for cash, bank accounts and tax refunds ($11,200 for couples). There are also many ways to legitimately spend cash prior to filing to fall within the exemption limits.