Filing for bankruptcy is still a subject that most people are reluctant to talk about. The credit industry has done a great job of shaping public opinion and making people feel ashamed for considering whether bankruptcy is a good option for debt relief. The result is that most people believe the most common bankruptcy myths that creditors are fond of perpetrating. Their only goal is to keep you from finding out that filing bankruptcy in Fort Lauderdale will stop all their debt collection efforts.
At the Fort Lauderdale Bankruptcy Law Firm of Orfelia Mayor, we are dedicated to fighting debt collectors on your behalf. Our bankruptcy attorney has been helping Broward County residents obtain debt relief through the bankruptcy code since 2009 and has heard all of the bankruptcy mis-information that’s out there. Some of the most common bankruptcy myths and the truth:
Myth 1: Filing bankruptcy is a difficult and complicated process.
True. There are many rules in the bankruptcy code and the forms are numerous. If you are trying to file a bankruptcy case by yourself (without a bankruptcy lawyer), I would be cautious. It’s a lot more than just filling in forms as some bankruptcy preparers would have you believe. While there are many bankruptcy rules and it involves gathering a lot of documents, filing bankruptcy in Sunrise or Pembroke Pines is not as daunting when you are being represented by an experienced attorney who is dedicated to bankruptcy law. If you have a good lawyer, the process is very manageable and filing bankruptcy is Fort Lauderdale loses its fear-factor.
Myth 2: I can’t afford to hire a bankruptcy lawyer.
False. If you are paying the minimum on a few credit cards, you can pay for a bankruptcy lawyer in just a few months once you stop paying the credit cards. Most people that hire us shift the credit card payments to their bankruptcy costs and are usually able to file within a few months. We also offer zero-money-down bankruptcy payment plans where you only pay the court filing fee and costs of preparing your bankruptcy petition up front and then make affordable monthly payments after we file your case. We are one of the few bankruptcy attorneys who offer the “file now, pay later” bankruptcy attorney fees option in Broward county. If you pay everything up-front before you file, we offer a discount on Chapter 7 bankruptcy fees.
Myth 3: If I file bankruptcy, I will ruin my credit score
False. The reality is that if you are considering bankruptcy, then your credit score is probably already ruined or on life support. Filing bankruptcy will probably improve your credit score a lot quicker than if you don’t file. The short answer to what happens to your credit score when you file bankruptcy is: It gets better!
Myth 4: If I file bankruptcy, I will never get credit again.
False. Most are surprised to find that you can rebuild your credit scores quickly and your credit score starts improving within months of filing bankruptcy. In many instances, clients report that it’s easier to get credit after filing bankruptcy then before filing.
Myth 5: If I file bankruptcy, I will lose everything that I own
False. The truth is that most people who file a bankruptcy case do not lose any property at all. When you finish a bankruptcy consultation with our bankruptcy lawyer in Cooper City, you will know what property, if any, is at risk and you will be fully informed on what you can do to keep it if you want it. If you are honest during your bankruptcy consultation, you will know exactly how bankruptcy law will apply to your case. You will know if any property is at risk and what to do if you want to keep it. In a Fort Lauderdale, Pembroke Pines or Miramar Chapter 13 bankruptcy, you don’t lose any property at all but you must pay the value of the property into your bankruptcy repayment plan.
Myth 5: If I file bankruptcy, I will lose my house, IRA, car or 401(k).
False. You can protect property when filing bankruptcy by applying the Florida exemptions. Under Florida exemptions, you can protect 100% of your homestead residence, pension, IRA and 401K. There are several other exemptions in bankruptcy law that can be used to protect personal property. The truth is that most people who file Chapter 7 bankruptcy do not lose any assets. If you file a Chapter 13 bankruptcy in Fort Lauderdale, you will not lose any assets at all. An experienced and qualified bankruptcy attorney can review your unique situation and advise you if anything you own is at risk and guide you on the best bankruptcy chapter for you to file under.
Myth 6: If I file bankruptcy, I will lose my job or won’t be able to get another job.
False. The overwhelming majority of jobs are not affected by filing bankruptcy. Some industries like banking and police departments use to take a very strong stand against hiring people with bankruptcy but after the financial crisis of 2009, even those industries started allowing a Chapter 13 bankruptcy without repercussions. Unless you tell your employer that you filed bankruptcy, most will never find out. Additionally, under federal law, employers are prohibited from taking an adverse employment action because of filing a bankruptcy. If you’re not sure, ask your Human Resources department and that usually removes all doubt and anxiety.
Myth 7: If I file bankruptcy, it will hurt my non-filing spouse’s credit.
False. If you are married and file an individual bankruptcy, your spouse’s credit is not affected in any way. If you are both joint signors on an account, then your obligation to pay gets wiped out but your spouse is still obligated on the account.
Myth 8: Bankruptcy will not help me because I owe delinquent IRS taxes.
False. Filing bankruptcy is one of the best ways to deal with delinquent IRS taxes. If your taxes qualify for discharge, you get rid of them altogether. If they do not qualify for elimination, then you can force the IRS to take payments without additional interest or penalties over three to five years and pay it off. Delinquent taxes in bankruptcy are subject to many rules and an experienced Fort Lauderdale bankruptcy lawyer can help you figure out which rules apply to your situation. I’ve never seen a tax situation get worse with bankruptcy – only better.
Myth 9: Bankruptcy is too expensive.
False. Although it does cost money to hire a bankruptcy attorney and file bankruptcy, when you add up how much you owe and what it’s costing you in money/interest, stress, sleepless nights, creditor harassment and worry – bankruptcy fees and costs are a very affordable investment in your peace of mind and enjoying life again. You deserve a fresh start – make that investment in your happiness. The one comment I’ve heard the most from clients is that they don’t know why they waited so long. Living under financial stress is what is too expensive. It costs your joy, happiness, peace of mind and positive outlook on life. Once you get all of that back, you will be amazed at how quickly you have the energy to tackle life and move forward!
The Bankruptcy Law Firm of Orfelia Mayor is a debt relief agency in Broward County and we love what we do….wipe out debt! We help people in Miramar, Pembroke Pines and Sunrise file for bankruptcy under the bankruptcy code. Make our day by letting us help you stop wage garnishment, stop foreclosure sales, stop car repos and just get you back into loving life! Your creditors have lawyers on their side – shouldn’t you have a lawyer too?
Contact us today for a no-charge, no-obligation bankruptcy consultation throughout Broward and Palm Beach County. We happily service clients in: Broward County including Oakland Park, Cooper City, Coral Springs, Miramar, Dania Beach, Davie, Deerfield Beach, Fort Lauderdale, Hallandale Beach, Hollywood, Lauderdale Lakes, Lauderhill, Lighthouse Point, Margate, Weston, North Lauderdale, Coconut Creek, Parkland, Pembroke Pines, Plantation, Pompano Beach, Sunrise, Tamarac, West Park, Weston. In Palm Beach, we serve clients in Boca Raton, Lake Worth, West Palm Beach, Lantana, Boynton Beach, and all cities in Palm Beach County.
Ask About Our Affordable Payment Plans and Zero-Money-Down Chapter 7 Bankruptcy.