Bankruptcy Myths Debunked
Harford County Bankruptcy Attorney Puts to Rest Some Popular Myths in Bankruptcy Law
In our practice, we have helped many people navigate the waters of bankruptcy.
Often, when we meet with clients, we are surprised to hear of the many
bankruptcy myths that are making the rounds with those of us who are not
bankruptcy lawyers. At the Bel Air law offices of
The Isak Law Firm, we want you to know the truth about these myths, so that you don't
labor under some misconception and suffer the consequences of being misinformed.
I'm married, so don't both my spouse and I have to file for bankruptcy?
This is false, both spouses do not have to file for bankruptcy. If you
don't have joint debt, one spouse can file for bankruptcy to get relief
from their own debt and it does not impact the other spouse's credit.
Isn't it true that you can't get medical bills discharged in bankruptcy?
No, this is simply not true. Almost all unsecured debt can be discharged
in bankruptcy, but the bill collectors won't tell you that. In fact,
they are in large part the reason for this myth. Medical bills, credit
card debt and other unsecured debt can all be discharged in bankruptcy.
Taxes from prior years are not dischargeable in bankruptcy.
This is also false. If you meet certain qualifications, back taxes including
federal, state, personal property, local and inheritance taxes can be
discharged or mitigated in bankruptcy. Again, bankruptcy relief is available
for back taxes once certain qualifications have been met. It is a simply
untrue blanket statement that all back taxes are not dischargeable in
A bankruptcy on your record will make it impossible to get credit in the future.
On the contrary, most people who have filed for Chapter 7 bankruptcy soon
get overwhelmed with offers for credit cards soon after their debts have
been discharged in bankruptcy. Many of our clients have successfully applied
for loans and mortgages in as little as 2 years after their discharge.
The interest rates offered to them may not be the best, but after a couple
of years of making payments on time, their credit scores rise again, and
their creditworthiness makes them eligible for low interest rates.
For more information about bankruptcy myths and how we can help you get
a new start financially, please
contact us for a consultation.