Bankruptcy Myths

Irvine Bankruptcy Lawyer

Bankruptcy has a number of myths and misconceptions that have accumulated over the years.  Some of these are promoted by aggressive bill collectors to scare debtors into paying off their debts.  While it is important to find out what bankruptcy is and can do for a person, the best way to find out is to speak to an experienced Irvine bankruptcy attorney at the Law Offices of Arthur H. Hausmann.  Some of the more consistent myths have to do with what the consequences are of filing for a bankruptcy. 

One such misconception is that after a bankruptcy a person's credit history will be "ruined" for 10 years.  The truth is, when a person finds themselves unable to keep up their payments or are using one credit card to pay off another, their credit is already ruined.  What bankruptcy allows such a person to do is either eliminate all their unpaid debts and get a new start in life with no debt, or it can provide them with a plan to repay their debts over an extended period of time with no interest.

Another myth concerns how long it might take to ever get another credit card or qualify for such things as a car or home loan.  While bankruptcy does get reported on an individual's credit history, what also gets reported is the fact that they have no debts and if they were repaid under Chapter 13 bankruptcy, it also shows the debts have been settled.  The truth is it may take only a few months before a person can get credit and even mortgage lenders will consider a person who has been through bankruptcy after only a few years.

Speak to a Bankruptcy Attorney in Irvine

Any bankruptcy attorney who has helped individuals and companies successfully resolve their debts through bankruptcy will be able to provide countless examples of what bankruptcy actually can do to allow a person to have a fresh start, debt free, and able to reorganize their life without the constant worry of bill collectors harassing them.  Another misconception about bankruptcy is that is can eliminate all a person's debt no matter what type.  This is not entirely true.  Certain debts, such as child support payments, alimony, taxes and student loans are not excused in bankruptcy. 

Contact an Irvine Bankruptcy Lawyer to learn the truth about the relief bankruptcy can provide a person whose debts have become unmanageable.