The Top 5 Bankruptcy Myths

Fort Lauderdale Bankruptcy Attorney: Why Bankruptcy Might Be Right for You

1. UNDER THE NEW LAWS, IT'S ALMOST IMPOSSIBLE TO FILE FOR BANKRUPTCY.

NOT TRUE! In fact, studies have shown that 85% of the people who qualified under the old laws still qualify under the new laws. Remember, the new bankruptcy laws were designed to prevent rampant abuse and fraud. Those who have genuinely fallen on hard times (regardless of the reason) and need a fresh start are still candidates for bankruptcy.

2. BANKRUPTCY CAN'T SAVE YOUR HOME FROM FORECLOSURE.

NOT TRUE! Under Chapter 13 Bankruptcy, if you show that you currently have income and are able to resume paying your monthly mortgage payments, you may be able to save your home. The back payments that you owe would be added together and a comfortable payment plan would be devised to get you current and keep up your payments going forward.

3. WHEN YOU FILE BANKRUPTCY, THE CREDITORS TAKE EVERYTHING YOU OWN.

NOT TRUE! Florida's bankruptcy laws are more liberal than any other state. You can keep more property in Florida than anywhere else. This may include a home, a car, furniture, personal items, IRA's, 401K's, pension plans, pre-paid college tuition funds, and even money in the bank from wages or government benefits.

4. BANKRUPTCY RUINS YOUR CREDIT FOREVER.

NOT TRUE! Studies have shown that those who keep current on their bills after bankruptcy can establish good credit within 18-24 months. Bankruptcy often is less of a problem than a foreclosure with regard to your credit.

5. FILING BANKRUPTCY IS A LONG, SHAMEFUL, EMBARRASSING PROCESS.

NOT TRUE! Today, bankruptcy is a quick, streamlined process. Everyone is treated with dignity and respect, regardless of the circumstances. It makes no difference to the Court whether your debt stems from overspending or illness; from alcoholism or a failed business venture. All are treated exactly the same under the law. And people from all walks of life file bankruptcy - doctors, lawyers, teachers, and policemen. If you still find it embarrassing, your family, friends, and employer need not know. Just remember that it is your guaranteed right under the Constitution to be relieved of crushing debt and to get a fresh start. Think of bankruptcy not as an admission of failure, but as a positive, affirmative step towards getting yourself back on your feet financially. You have been given the right under federal law to get a fresh financial start. We are here to help you move forward.

Contact a Ft. Lauderdale bankruptcy attorney for trusted legal representation.