Debunking Common Bankruptcy Myths

If you are thinking about bankruptcy, you likely have a lot of questions. You have probably also heard a lot of myths regarding what will happen if you do decide to file. These myths often keep people from taking the steps needed to help them get their finances back under control. Below is a list of common myths about bankruptcy. However, do not hesitate to reach out to the attorneys at Lankford & Moore Law to get more specific answers to your questions. 

  • Myth: I will lose everything. This one myth keeps many people from getting the relief they need, but the reality is that filing bankruptcy does not mean you will lose your home or vehicle. Most bankruptcies allow you to continue to pay for items you want to keep. In fact, it is almost impossible to lose your home. Most states, including Georgia, have provisions to protect your assets such as your home, cars up to a certain value, clothing, household items, and retirement plan. 
  • Myth: My credit will be ruined forever. People do more damage to their credit by not filing bankruptcy soon enough. If you handle your repayment plan and bankruptcy well, it may improve your credit in just a few years after filing. 
  • Myth: Bankruptcy is only for the financially irresponsible. Most people who file bankruptcy have had some sort of extenuating circumstances that led to their financial issues. These may include an accident or illness, loss of job, or divorce. 
  • Myth: After filing bankruptcy, it will be up to me to fix my finances. In Georgia, people who file bankruptcy are required to attend classes before their bankruptcy can be filed and after it is filed. These classes help people learn how to manage their finances. 
  • Myth: Bankruptcy will get rid of all my debt. This is one myth that many people wish was true, but it is not. Many debts are discharged, but there are certain obligations that will not go away, such as child or spousal support, student loans, restitution for crimes, personal injury debts if you were operating a motor vehicle while intoxicated, and fines owed to government agencies. Many debts are eliminated or reorganized during a bankruptcy, which helps relieve the burden of too much money being owed each month.

Contact an Experienced Georgia Bankruptcy Attorney Today

Many people make the mistake of waiting to talk to an attorney about bankruptcy until it is too late. They end up in a miserable situation with creditors constantly harassing them. You do not need to wait until you are in this situation. If you cannot manage to get your head above water, contact the attorneys at Lankford & Moore Law today to schedule a consultation.

Our attorneys can help dispel some of the common myths you may have heard and ease your mind when it comes to bankruptcy. Our experienced attorneys will provide focused, compassionate representation from your very first consultation to the resolution of your financial issues. Contact us today to schedule a consultation.

I realized the true function of a lawyer was to unite parties riven asunder. The lesson was so indelibly burnt into me that a large part of my time during the twenty years of my practice as a lawyer was occupied in bringing about private compromises of hundreds of cases. I lost nothing thereby — not even money, certainly not my soul.

Mahatma Gandhi

Lankford & Moore Law in Downtown Lawrenceville

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