Myths About Bankruptcy

Are you having difficulty paying your debts? At Tolin & Tolin, PLLC, we understand how greatly debt can reduce your quality of life. If you spend your days and nights worrying about how you will meet your bills, contact us for help. Do not let myths about bankruptcy prevent you from gaining knowledge about actions you can take to get out of debt. A bankrutpcy lawyer from our team will meet with you to discuss your concerns and help you begin work on a program tailored to your needs.

Get the Truth from a Bankruptcy Attorney

If I file for bankruptcy, I will lose my house.
Part of the bankruptcy process under Chapter 7 requires the bankruptcy trustee who oversees your case to liquidate assets in order to pay your creditors, but this is not a problem for the vast majority of clients we represent. Thanks to use of state and federal bankruptcy exemptions, the clients’ assets are nearly always entirely protected.

Only financially irresponsible people declare bankruptcy.
Most people who file for bankruptcy do so after a major life event such as divorce, job loss or a medical emergency. The laws are written to prevent debtors from taking unfair advantage of this legal shelter, with barriers such as the means test ensuring that only individuals who truly need bankruptcy are allowed to proceed.

Bankruptcy is easy, and I can do it on my own.
While there is no law which requires that you retain an attorney to represent you in filing for bankruptcy, you are strongly discouraged from representing yourself. The rules and regulations governing the subject are complex, and you could easily make mistakes which would disqualify you or deprive you of the full benefits available.

Declaring bankruptcy will destroy my credit
Your credit score may drop after you declare bankruptcy, but your credit may already be suffering from factors such as a high debt-to-income ratio and missed loan payments. Discharging your debt will significantly improve the situation and free up more of your income so that you can live within your means. Many clients actually see their credit score improve after completing bankruptcy. After 10 years, the bankruptcy will disappear from your credit report.