Bankruptcy Myths

Making the decision to file for bankruptcy can be a daunting task, especially if you are unsure of the laws surrounding Chapter 7 bankruptcy and Chapter 13 bankruptcy, or how bankruptcy will affect your life. One of the best ways to ensure you are making smart and strategic decisions about your financial future is to educate yourself about bankruptcy.

Shedding Light On The Misconceptions About Bankruptcy
At Idaho Bankruptcy Law, we are dedicated to helping our clients across Southern Idaho learn about bankruptcy. Oftentimes, our clients come to our office with misconceptions regarding bankruptcy and other debt reduction options.

Founder and Burley bankruptcy myths attorney Paul N. J. Ross helps our clients learn the truth about bankruptcy, offering thorough answers to questions and common myths such as:

  • I can file for “medical bankruptcy” to only pay off my medical debt.

To state it simply: there is presently no such thing as medical bankruptcy. People sometimes believe that they have the opportunity to pick and choose the types of debt that they will pay off in a bankruptcy — a debt relief buffet. Realistically, you cannot only choose medical expenses or other certain debt to discharge in bankruptcy. Instead, every asset and every debt is included in bankruptcy. Our lawyer will help you understand your options under Chapter 7 and Chapter 13 bankruptcy, including reaffirmation agreements.

  • I will lose everything I own if I file for bankruptcy.

This is untrue. State laws now provide exemptions and minimal laws that protect your property such as your home, car and other property. In many cases, our clients have been discharged of their debt without relinquishing any property to their creditors.

  • I will never be able to buy a house or a car again if I file for bankruptcy.

While you may not be approved for a home mortgage immediately after your bankruptcy has concluded, filing for bankruptcy will not prohibit you from buying property. The ability to receive a loan really depends on the individual and his or her own financial history.

  • My credit will be ruined if I file for bankruptcy.

Truthfully, by the time you are considering bankruptcy to eliminate your debt, your credit score has likely already dropped significantly. Instead, bankruptcy can actually help you regain a respectable credit score. After your bankruptcy, you will be left with a clean slate, meaning you have the power to rebuild your credit by owning and maintaining lines of credit. As long as you use your credit responsibly and keep current on all your payments, your credit score should improve.

Learn more about bankruptcy and get answers to commonly asked bankruptcy questions.

Call Our Idaho Credit And Debt Lawyer Today

We invite you to contact Idaho Bankruptcy Law at 208-261-1834 to schedule a free initial phone consultation to learn more about bankruptcy. Our law office hours are Monday through Friday, from 8 a.m. to 5 p.m. and evening and weekend appointments by special request. We are able to make home calls or appointments closer to your location. Spanish services available.