Here is what “everybody knows” about bankruptcy – except it’s not true.
- Myth # 1: “If you file bankruptcy, you will lose your house.” This ALMOST ALWAYS FALSE. I have clients who voluntarily surrender their houses to get out from under their impossibly large house payments, but in most of my cases my clients file bankruptcy because they want to KEEP their houses. I get rid of their OTHER debts so they can AFFORD the house. Saving the house is usually my client’s top priority, and it is always mine.
- Myth # 2: “You can’t bankrupt a debt after a lawsuit has been filed.” That is COMPLETELY FALSE. Most of my clients file bankruptcy after a lawsuit has been filed. And when I file a bankruptcy lawsuits are generally “stayed,” which means halted; if a hearing is slated, the hearing comes off the docket, and if a sheriff’s sale is scheduled, the sheriff’s sale is canceled. And garnishments? Stopped cold. In fact, sometimes garnishments have to be refunded.
I love when that happens.
- Myth # 3: “You can’t bankrupt taxes.” SOME kinds of taxes, such as sales taxes, can’t be discharged in bankruptcy, but the most common kinds of taxes ARE dischargeable in a SURPRISING number of cases. And even when I can’t discharge the ENTIRE tax debt, I can frequently REDUCE the tax debt, interest and/or penalties. Talk to me about your back taxes. I want to help.
- Myth # 4: “My bankruptcy will ruin my spouse’s credit.” Despite what “everybody knows,” marriage does not make you responsible for your spouse’s debts. And generally speaking, one spouse’s bankruptcy won’t hurt the other spouse’s credit. Now, it is true that if your spouse co-signed with you, your solo bankruptcy won’t get your spouse “off the hook” for the debt and a joint bankruptcy may be necessary. But NOT ALWAYS. Talk with me about your joint debts as well as your solo debts. Let’s see what we can do.
- Myth # 5: “I will never be able to get a loan for a house, credit card or vehicle again.” No. NO! If you are good with your credit after bankruptcy, you should be able to get a home loan within 1 to 2 years after bankruptcy … maybe at a rate a few points higher than your neighbors, but no worse than that. You just have to be good with your credit. And I will give you tips on what to do after bankruptcy.
Most of my clients report that they qualify for car loans even SOONER … and a decent car at a decent price. You just have to know what to do (and who to watch out for!) after bankruptcy. I will give you tips on that as well.
And credit cards? Most of my clients are offered new credit cards before the bankruptcy is even over! You just have to be wary of some deals (and some banks). I will give you advice on how to get a good credit card and how to use credit cards to rebuild your credit after bankruptcy.
Call the The Lohmeyer Law Office for a free initial consultation … with me, in person, not a paralegal or some staff member.
And if I can’t find a solution to your financial problems, we will shake hands and part friends. There is no charge.