Don’t believe these myths you may have heard about bankruptcy!

  1. Everything I Own Will Be Lost! This is NOT TRUE! In most Chapter 7 Bankruptcy cases, you will be able to keep most, if not all, of your belongings. This is especially true for things that are critical and necessary in your day-to-day life – such as vehicles, homes, clothing, furniture, and most retirement plans. You are entitled to keep over $21,000 in assets, and depending on the asset, you may be able to keep much more. This means the bankruptcy court can’t touch them and you keep them.
  2. My Credit Scores Will Never Be Good Again! Again, this is NOT TRUE! After your bankruptcy case is complete, there are a number of strategies you can use to raise your credit score. Depending on where your score was before you filed your bankruptcy, you may even find that your credit scores recovering quicker than they would have had you not filed bankruptcy. This is because you no longer have an overload of debt and/or collections being continuously reported to the credit agencies each month. It is possible to purchase a vehicle, obtain a credit card and more, depending on how you handle yourself. We can help advise you as what may or may not help you build your credit.
  3. Filing for Bankruptcy is Difficult! Not necessarily. Filing for Bankruptcy doesn’t have to be hard – not if you have a skilled, knowledgeable attorney and staff working with you every step of the way. We help you complete your bankruptcy paperwork – which can be overwhelming and extensive, particularly when you are unfamiliar with the rules and procedures. Our job is to guide you in the right direction and explain each and every step of the process so that it is not difficult or overwhelming. We at Leslie Legal Group can provide this assistance and be with you every step of the way – you will know exactly what you need to do for a successful bankruptcy, and we let you know ahead of time what to expect.
  4. Only Deadbeats or Bums File Bankruptcy! This is completely false. There used to be a pretty big stigma attached with filing bankruptcy because so few people filed and did so either in extreme cases or because they were intentionally trying to avoid their obligations. This is NOT THE CASE ANYMORE. Due to the collapse of the housing market and resulting destruction of our economy, so very many people have had no other option than to file for bankruptcy. In 2011 in San Diego County alone, more than 21,000 people filed for bankruptcy. You can imagine how many people across the country have been forced to file for bankruptcy over the last few years. The numbers are extreme. Missing just one credit card payment or losing your job for even a short amount of time can create a snowball effect from which most people can never recover. The bankruptcy laws exist to help people and can be a good tool when there are few or no other options. Everyone can experience hard times and find it difficult to recover – Click here to see a list of famous people whom have had to file for Bankruptcy.
  5. All of My Debt Will Disappear! Unfortunately, this is not true. There are certain types of debt that are unable to be eliminated with bankruptcy, but for a valid reason. Child support, alimony payments and criminal restitution must be paid and cannot be eliminated. Any debt that was incurred through fraud must be paid and cannot be eliminated. Student loans, for the most part, cannot be eliminated unless a serious and extremely compelling reason can be shown, which is a very difficult standard. Taxes, for the most part, cannot be eliminated and must be paid. However, there is a possibility of eliminating very old taxes.