Myths About Bankruptcy
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 has given rise to numerous myths about bankruptcy. The attorneys at Ferrer Shane, PL, invite people considering filing bankruptcy to speak with them about the realities of bankruptcy, rather than listen to false reports and rumors.
Our Miami lawyers dispel bankruptcy myths such as these:
Myth Number 1: People overwhelmed by debt no longer have bankruptcy as an option.
Reality: Bankruptcy is still an option for many people. They must take a means test to determine whether they qualify for discharge or reorganization of their debts.
Myth Number 2: People who file bankruptcy lose everything they have.
Reality: Florida has a liberal exemption policy that allows people filing Chapter 7 to keep personal property that may include a car and house. It also exempts income from a variety of sources, including some pensions, disability payments and veteran's benefits. People filing Chapter 7 in Florida find that they can keep more property than they expected.
Myth Number 3: The stigma of bankruptcy is even worse than it used to be.
Realty: The culture is increasingly aware that filing bankruptcy is primarily due to job loss, illness or divorce — things that are usually beyond an individual's control.
Myth Number 4: People who file bankruptcy can never buy a house or car again.
Reality: People who discharge their debts in a Chapter 7 filing can start rebuilding their credit scores within months after the bankruptcy process is complete. Within two years, they are eligible to apply for mortgages on the same terms and with the same requirements as applicants who did not file bankruptcy. There is life after bankruptcy.
Myth Number 5: Married people must file bankruptcy as couples.
Reality: One spouse is able to file bankruptcy without the other spouse; the other spouse's credit should not be affected.
Call to Discuss Bankruptcy Myths
Contact a South Florida lawyer to get answers to questions about these and many other myths about bankruptcy. Call Ferrer Shane, PL, at 305-262-2728.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
