Misconceptions

People will hear all sorts of things about bankruptcy that simply aren’t true. Call the Bhend Law Office to discuss any questions you have.

Here are a few of the common misconceptions we run into frequently:

Bankruptcy will hurt your credit score

Bankruptcy will
hurt your credit score

People can immediately begin to repair their credit after they receive a discharge of their debts. Debts that you reaffirm (such as a house or a vehicle that you agree to continue to pay after your discharge) will reflect as a positive on your credit report. Additionally, people can apply for credit after they receive a discharge. It is possible to improve your credit score by as many as 100 points within a year of filing bankruptcy.

You lose your personal property

You lose your
personal property

In most cases, bankruptcy will allow you to retain all your personal possessions. Bankruptcies are designed to protect your personal property from creditors. Bankruptcy will not wipe out all liens. You will need to continue to pay on debts where your possessions you wish to retain that are subject to a lien (common examples are a house or a vehicle)

Everyone will know

Although bankruptcy is public record, it is unlikely that people will know of your filing. Print media rarely report bankruptcy filings (this was not always the case).port. Additionally, people can apply for credit after they receive a discharge. It is possible to improve your credit score by as many as 100 points within a year of filing bankruptcy.

I can choose which debts to disclose

You must disclose all your assets and your debts when you file a bankruptcy, even the debts you wish to keep. All creditors are treated equally to prevent discrimination. This disclosure is mandatory.

Bankruptcy will not affect my tax debt

Generally, income taxes three years older or more can be discharged in bankruptcy if certain criteria are met.

What Bhend Law Office will do for you

• Explain the bankruptcy process to you and how it could benefit you.

• Tailor a bankruptcy plan to your specific needs.

• End wage garnishments.

• Guide you along a path to an improved credit score.

• Help you avoid foreclosure.

Call the Bhend Law office to set up a free consultation to examine your particular situation.