Myths About Bankruptcy

The myths about bankruptcy have been repeated for years, and have caused debtors to miss out on finding financial freedom. At Engel Law Group, our Seattle attorneys don’t deal in myths, we know the facts about bankruptcy, and will help you figure out the best way to proceed.

Below are some of the more common myths that exist about bankruptcy:

Myth: You must give up all of your possessions when going through bankruptcy.
Fact: Most bankruptcies are “no asset” cases, which means you don’t possess assets that might be liquidated. In these cases you keep what you own because your assets are considered exempt from the bankruptcy process.

Myth: You are unable to obtain credit for 10 years after your bankruptcy.
Fact: If you’ve filed and completed Chapter 7 bankruptcy, you may apply for low-limit credit cards, and eventually high limit cards.  In fact, if you file Chapter 13 you may obtain bank loans during the process!

Myth: You cannot file for bankruptcy if you are employed
Fact: In regard to Chapter 13, you MUST be employed to even file for it. Why? So you can begin to pay back on the creditor payment plan created for you by the court.

There are hundreds of other myths about bankruptcy that prevent people from filing. You don’t have time to listen to all of them. Let us listen to you, and then work to get you back on your feet.

Contact Engel Law Group today, we’ll tell you difference between bankruptcy fact and myth.