The recent financial crisis has helped shed light on some of the myths
regarding bankruptcy, but nearly all of the commonly believed untruths
about bankruptcy are still around in some form. Sadly, most of these myths
are negative and discourage people from considering bankruptcy even when
it’s the best option for them.
At Dethlefs, Pykosh & Murphy Law, we are amazed at some of the misinformation
that our clients often hear from the television, radio and internet —
or even from family and friends. We thought this page would be a useful
resource for you and help to eliminate some of negative myths about bankruptcy
Some common myths our Harrisburg & York bankruptcy attorneys hear from
our clients are addressed below.
If you have questions or concerns,
contact Dethlefs, Pykosh & Murphy Law immediately.
Myth: If I file for bankruptcy, I will lose everything I’ve worked
for — my home, car, pension and retirement savings.
Truth: Most clients are able to keep what they currently own. When you
file for bankruptcy in Pennsylvania, there are exemptions available to
you to help you keep your home, automobile, pension, personal property
and other assets.
Myth: I will never again get credit after bankruptcy.
Truth: Once you complete the bankruptcy and get your debt discharged, you
can start rebuilding your credit. Credit options are available for those
who have recently gone through bankruptcy. As long as you make responsible
choices and timely payments after bankruptcy, you can even achieve a good
credit standing just several years after your bankruptcy discharge.
Myth: Bankruptcy is only for deadbeats.
Truth: This myth couldn’t be further from the truth, especially in
today’s economy. Donald Trump, Larry King and Ulysses S. Grant –
the 25th U.S. President – all filed for bankruptcy. Milton Hershey
used bankruptcy to rebound from several failed candy businesses before
he achieved great success. Even the founder of Pennsylvania, William Penn,
Myth: My friends and coworkers will know if I file for bankruptcy.
Truth: It is true that the bankruptcy filing is public information, but
unless you are a celebrity or public figure your bankruptcy will likely
go unnoticed. Approximately
1.5 million people have filed for bankruptcy each year during these rough economic times
and Pennsylvania newspapers only publish business bankruptcies.
Myth: Once I file for bankruptcy, a government agent will come to my home
and take inventory of everything.
Truth: This is simply not true. Nobody will come to your home and take
inventory of your assets and personal effects.
Myth: I cannot afford to hire a bankruptcy attorney.
Truth: A reputable bankruptcy lawyer offers flexible payments arrangements
and can actually save you money in the long run. A more appropriate question
is whether you can afford risking it by
not hiring a bankruptcy attorney. Visit our page on the
cost of a bankruptcy attorney for more information.