Bankruptcy Exemptions

Banishing Your Fears About Bankruptcy

baby-memeBankruptcy can seem very intimidating to most people, and the average person has a number of misconceptions about the bankruptcy process. Here are the top 3 misconceptions that we hear from clients:

  • Bankruptcy lowers my credit score
    • FALSE – In many instances, clients see an increase in their credit score within the 12 months after filing. At your retainer appointment, we pull a comprehensive credit report from all three credit reporting agencies.
  • Lenders are less likely to work with me after filing
    • FALSE – in a Ch 7 bankruptcy, most or all of your debt is wiped out resulting in your debt to income ratio looking a lot better. Lenders also know that you can’t file another Ch 7 bankruptcy for another eight years. Both of these factors make you look like a better risk to lenders. Many of our clients receive credit card offers and car loan offers in the mail shortly after filing.
  • I’m going to lose my home/car/possessions, when i file
    • FALSE again! – there are a number of exemptions that can be used to protect your assets including your home, car, retirement savings, coin collection, etc. We go over all of this at your free consultation!

Best of all and most importantly, we’ve witnessed firsthand how bankruptcy can relieve mountains of stress resulting in happier, and mentally healthier individuals. We are committed to making the bankruptcy process as stress free and efficient as possible. Contact us today for a free consultation!