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  • Common Bankruptcy Myths Busted

    Call: 888-297-6203

    Handling bankruptcy is difficult than you thought. With so many myths circulating about bankruptcy, it is difficult to sift fact from fiction. Lawyers of Dallas based bankruptcy law firm Recovery Law Group, help bust some of the most common myths associated with bankruptcy.

    # Myth 1 – Bankruptcy filing is public knowledge

    Though bankruptcy documents are public records, not everyone is aware of them. Unless one specifically searches for these records they cannot be found easily. You need a specific username and password to access the database containing public records of bankruptcy filers. Thus, your neighbors, friends or a relative finding out about this is very slim. Thus, despite the information being public record, accessing federal court records is not easy.

    #Myth 2 – Filing for bankruptcy means losing all property

    When you file for bankruptcy, federal and state governments provide exemptions to protect some equity in the property. This includes your house, vehicle, personal possessions, etc. However, when you file for Chapter 7 or Chapter 13 bankruptcy, you must be able to pay the mortgage amount. Another option available is for you to reaffirm the mortgage and keep your house. Chapter 13 bankruptcy even allows you to catch up on mortgage arrearage.

    #Myth 3 – You need to pay all unsecured debts in case of Chapter 13 bankruptcy

    People who earn a monthly income less than the state median can qualify for Chapter 7 bankruptcy. However, if your income is more than the state median, you need to pass a “Means test” to find out if you can file for Chapter 7 or Chapter 13. Similarly, when you file for Chapter 13 bankruptcy, a test is done to determine your disposable income. This is used to pay off your unsecured creditors. depending on your disposable income, you can pay all your unsecured debts, some of them or none.

    #Myth 4 – Couples need to file for joint bankruptcy

    This is another popular myth. There is no compulsion regarding the joint filing of married couples, though a joint petition saves you on money (attorney fees, court cost, etc.). Hiring a bankruptcy lawyer is advised as they can expertly assess the situation to let you know whether a joint filing would be more beneficial than individual ones. You can call 888-297-6023 to consult with experienced bankruptcy lawyers regarding your debt situation.


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    • Most Common Bankruptcy Myths

      Call: 888-297-6203

      Bankruptcy despite being the best way to get rid of your debts, is often misunderstood by people. People fear that it might put them in a worse situation without realizing that being under a huge mountain of debt is the worst thing for people. Dallas based bankruptcy law firm Recovery Law Group discusses some of the myths associated with bankruptcy:

      • Bankruptcy can damage your credit permanently

      Though bankruptcy does influence your credit report, it is not a permanent one. Compared to late payments and bad credit on your credit report, the effect of bankruptcy is minimal. Depending on the chapter of bankruptcy filed, bankruptcy is mentioned on your credit report for 7-10 years, yet you start getting credit just after a bankruptcy discharge. You can get secured credit cards and after making timely payments on them, you can even get a regular credit card within a couple of years of the bankruptcy discharge.

      • Your employer will come to know of your bankruptcy

      Though bankruptcy is public record, its copies are not sent to your employer. Apart from your creditors, bankruptcy trustee and lawyers, nobody else becomes aware of your bankruptcy, unless they specifically go looking for it. Any person who sees your credit report will come to know of your bankruptcy.

      • Filing for bankruptcy will result in loss of all property

      Exemptions are available by both federal and state government to protect necessities for bankruptcy filer. Thanks to those exemptions, you can protect most of your assets including equity in vehicle and home, personal possessions, retirement accounts, etc. While federal exemptions are common throughout the country, state exemptions vary.

      • Bankruptcy gets rid of all debts

      Most of the debts are discharged in bankruptcy; however, there are certain debts that survive bankruptcy like a student loan, court fines, alimony and child support, etc.

      • Bankruptcy reflects irresponsibility

      Any person who has had the misfortune of making the wrong investment can be under huge debt. Rising medical costs and job scare can throw any person under large debts. Thus, despite being a responsible person, people might end up in a situation which requires them to file for bankruptcy.

      • You don’t need lawyers to file for bankruptcy

      Though it is not essential for you to hire a lawyer if you wish to file for bankruptcy, it is beneficial. An experienced lawyer can be the difference between getting your debts discharged or your case dismissed. In case you need to consult with experienced bankruptcy attorneys, you can do so by calling 888-297-6023.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • Bankruptcy Myths: Sieve Fact from Fiction

        Bankruptcy Myths: Sieve Fact from Fiction

        Call: 888-297-6203

        Most of the clients who have been struggling with dwindling fortunes contemplate bankruptcy but have their fears around the topic. Los Angeles based bankruptcy law firm https://www.staging.recoverylawgroup.com/ lawyers say that most of these are mere misconceptions created to keep unaware and innocent people under continuous debt. Often people file for bankruptcy when they are left with no other option. It will be surprising to know that most of the myths are just misconceptions to scare people from filing for bankruptcy.

        Here are some of the common misconceptions regarding bankruptcy:

        • Credit is ruined

        One of the most common myths is that bankruptcy ruins the credit and getting over it is impossible. Well, for starters, people who are filing for bankruptcy, probably have a bad credit score. Bankruptcy won’t take it any lower. In fact, bankruptcy wipes your slate clean. Though bankruptcy appears on your credit report for a maximum duration of 10 years, all bad credit will be removed.

        Filing for Chapter 13 bankruptcy will give you a new credit even during your repayment plan, with permission from the court. Chapter 7 bankruptcy, on the other hand, gives you a discharge in no time and you will soon be having new credit offers. Since there are no debts remaining after the bankruptcy discharge, you become an ideal candidate for fresh credit. However, before opting for nay it is important that you check the interest rates. with timely payments, you can improve your credit score and get credit cards with good interest rates too.

        • Personal failure

        You should not consider bankruptcy filing as a sign of personal failure since many times people fall into bad times. Getting the pink slip, sudden illness or divorce can be reasons most people haven’t anticipated. Such problems are generally not catered to in the normal course of events and can throw anyone’s finances in a ditch. Bankruptcy is designed to make life easy for these genuinely honest people who have hit a rough patch.

        • You lose everything in bankruptcy

        Unlike the false stories circulating about bankruptcy, you can save most of your belongings thanks to the federal and state bankruptcy exemptions. Every state has a different limit of the homestead, personal property, vehicle, wild card exemptions, etc. which can be used to protect your equity in the property. Additionally, your retirement accounts and pension funds are protected during bankruptcy.

        • Bankruptcy will become public knowledge

        Though bankruptcy filing is public record, not everyone will come to know of your bankruptcy, since every day numerous people file for bankruptcy. unless people are specifically searching for your credit score, they won’t be aware of your bankruptcy filing.

        • No money to hire an attorney

        If you are thinking of filing for bankruptcy under Chapter 7 or Chapter 13, you can use the debt payment money to hire the attorney. Since the majority of debts are unsecured types, they get discharged in a Chapter 7 bankruptcy; while Chapter 13 allows you to catch up past due payments. This way you won’t affect your chances of getting your debts discharged through bankruptcy.

        Despite whatever you have heard bankruptcy is not a complicated and difficult process. With experienced bankruptcy attorneys by your side, things go very smoothly. They will help you decide which chapter of bankruptcy would be best to save most of your assets while getting rid of the majority of debts. You can call 888-297-6023to to discuss your case with skilled bankruptcy lawyers.


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

        • Common Jacksonville Bankruptcy Myths

          Call: 888-297-6203

          Hiring an experienced bankruptcy attorney is extremely important when you decide on filing for bankruptcy. There are many myths associated with bankruptcy which claims that it is one of the most difficult legal proceedings, quite scary and a very difficult process to undergo. Hiring an experienced lawyer will help you get rid of all these myths and at the same time guide you very smoothly through the entire process. Experienced attorneys can guide you, calculate your possibilities on filing for bankruptcy, help you to ascertain whether this is really the right step for you and at the same time enlighten you with both the pros and cons of filing for bankruptcy based on your case. Their knowledge and guidance will make the entire journey of filing for bankruptcy a cakewalk for you.

          Some of the most common myths associated with bankruptcy:

          Myth #1 – People who file for bankruptcy are financially irresponsible

          It is irrelevant to say that all those who file for bankruptcy are irresponsible with their expenses, though there may be few who abuse this benefit most are innocent with genuine reasons. There may be circumstances which may have led them in this situation where they are left with no option but to file for bankruptcy like illness, divorce, or maybe the loss of a job. These circumstances could be the reason for the reduction in income or increased expenses making them redundant in meeting their expenses.

          Myth #2 – Filing for bankruptcy makes everyone aware of my situation

          Filing for bankruptcy does not mean that it will be published in your local newspaper or announced somewhere. Since all legal proceedings are a public record, the documents submitted for bankruptcy will also be considered to be a public record, but not everyone can have access to that data. This data is available to the attorneys who can search for the bankruptcy cases, or if someone who is analyzing your credit report.

          Myth #3 – I will lose everything, including my house if I file for bankruptcy

          It is completely incorrect to say that you have to give up everything when you file for bankruptcy. Filing for bankruptcy only changes the way you pay back your loans. This completely depends upon the section under which you are filing for bankruptcy. In fact, there are multiple exemptions which can be of your benefit when you file for bankruptcy (depending on your case). These exceptions can help you keep your luxury assets like home, car provided you pay the mortgage amount as pledged and reaffirmed as per the bankruptcy case.

          Myth #4 – Paying off my debts or consolidating is better than filing for bankruptcy

          Many people fear bankruptcy, and thus believe that it is better to pay back the entire amount or stay in debt than file for bankruptcy. Though paying off is always a better option, the practical side varies on the overall debt that you have accumulated. A professional and experienced attorney will be the best guide to help you I the right direction in this situation.

          Myth #5 – Filing for bankruptcy will exempt 100% debt

          Depending on your case, the charges and debts are exempted. Though not 100%, mostly all debts are exempted if they are found to be genuine. Few debts like student loan, child support, alimony, IRS are not exempted at any cost.

          Myth #6 – You have to file bankruptcy with your spouse if you are married

          This definitely does not stand true. It is completely your discretion how you want to file for bankruptcy, individually or with your spouse. Though it would not be advisable to file with your spouse together, rather filing it individually would be a better option.

          If you have any other queries or are considering the option of filing for bankruptcy, we highly recommend that you discuss the case once with our experienced attorneys who can guide you better based on your case and scenario. An experienced attorney can only guide you if filing for bankruptcy is the right decision or not in your case. To contact, call – 888-297-6203 or log on to https://www.staging.recoverylawgroup.com/


            *Are you more than 60 days past due on your mortgage?

            *Do you own a home?

            Are you currently working?

            By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

          • Busting Common Bankruptcy Associated Myths

            Busting Common Bankruptcy Associated Myths

            There are many myths when it comes to bankruptcy; many of which are spread with a malicious intent of scaring debtors into filing for bankruptcy. However, most of them are just myths with no basis for truth. Bankruptcy Laws have been designed to offer people suffering from a severe financial crisis, a fresh financial start. Instead of believing everything you hear about bankruptcy, it is better to consult a good lawyer to sieve through the misinformation circulating around and filter the facts for you. Believing the myths will give you a wrong idea about bankruptcy that can cause you or your loved ones to make errors in your financial journey which will have long term detrimental effects.

            To successfully understand the process of bankruptcy, it is important that the bankruptcy myths are properly addressed by experts. Some of the most common myths associated with bankruptcy, as per lawyers of the Los Angeles based law firm Recovery Law Group are:

            • Bankruptcy can help eliminate all past debts. Though bankruptcy offers a fresh start, it is not a complete washing of your financial slate and handling you a blank one. Filing for bankruptcy doesn’t mean that you have to pay any money that you owe. Several debts like alimony, child support, student loan payments, restitution payments, etc. are not discharged by bankruptcy and you will have to pay for them. If you have filed your taxes, there may be a chance that related tax debts you have to get reduced or eliminated, otherwise, these debts also remain.
            • Bankruptcy permanently destroys your credit. Filing for bankruptcy does affect your credit, but this is temporary and you can rebuild your credit score as well as history post your bankruptcy discharge. Once you have cleared all your dues and get a fresh start, credit card companies approach you with a new line of secure credit cards. It is important to get a low-limit card and make regular on-time payments on them to improve your credit score. Once you have to rebuild your credit history, you can get a regular credit card. However, it is important to make regular payments to not fall back on bad times financially.
            • Bankruptcy filers are generally financially irresponsible people. Nothing could be farther from the truth as many times personal problems like unemployment, huge medical bills, expensive divorce settlements can wipe anyone financially. These kinds of financial problems can happen with even the best people. Many people file for bankruptcy due to such financial issues on a regular basis as bankruptcy helps them overcome the financial losses incurred due to no fault of theirs.
            • Spending sprees before bankruptcy filing are not be repaid. Going on a spending spree just prior to filing for bankruptcy is viewed as a fraudulent activity by the court. The debts thus incurred are not dischargeable and you will have to pay for them even if you file for bankruptcy. In fact, with such activities, you will have hampered your bankruptcy case and also exposed yourself to criminal allegations. Just because you are filing for bankruptcy doesn’t allow you to go ahead and splurge as you can end up in deeper troubles than you already are.

            Though bankruptcy is a no financial cure for all, yet it is one of the best ways to get over troubled financial times. Get a fresh start and regain financial independence by asking bankruptcy lawyers for all options available for you.


              *Are you more than 60 days past due on your mortgage?

              *Do you own a home?

              Are you currently working?

              By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.