Bankruptcy Myths
Forget what you think you know.
Many people refuse to consider filing a bankruptcy case because of what they think they know about the process. A great deal of what you hear about bankruptcy is false. You owe it to yourself and your family to find out the true facts. Almost everyone who files a bankruptcy case can tell you that bankruptcy is nothing like they imagined. Our bankruptcy clients often express shock at how better their lives are after they file their bankruptcy case. Get the real facts before you make any decision about your finances. Your Birmingham and Tuscaloosa bankruptcy lawyers can answer all of your questions and they will do so for free.
Only Deadbeats file bankruptcy cases.
Most bankruptcy cases are filed by hard-working people who have tried all their lives to pay their bills on time. Most are horrified at the thought of having to file bankruptcy. Most debtors are living proof that “Life Happens.” The number one cause of bankruptcy is medical bills. The loss of a job, a reduction in hours or overtime, rising gas and food prices, rising interest rates, predatory lending practices, and business failures are also leading causes for the filing of a bankruptcy case. Very few people simply overspend their way into bankruptcy. Life Happens and the twists and turns it brings often leave us in a position we never thought we would be in. Day-after-day, our bankruptcy lawyers help good, hard-working people who want to pay their debts. Some can repay a portion of what they owe. Others are truly unable to repay any of their unsecured debt. Whatever your situation, our bankruptcy lawyers will treat you with respect and dignity. Our bankruptcy lawyers will take the time to get to know you and your financial situation. We will get you the help you need.
I will lose all my property if I file a bankruptcy case.
Very few people lose any property when they file a bankruptcy case. This is true whether they file a Chapter 7 case or a Chapter 13 case. Our experienced bankruptcy lawyers will review your debts and your assets. They will discuss with you whether they believe you are at risk of losing any property. Our bankruptcy lawyers have over 25 years of experience representing debtors in bankruptcy.
Bankruptcy is no longer available after the 2005 law change.
In 2005 Congress reformed the bankruptcy laws to make it harder for people to file a Chapter 7 case. Studies conducted since 2005 show that over 98% of the people who could file Chapter 7 before the law change are still eligible to file. The law change makes it even more important that you have an experienced bankruptcy lawyer representing you. Our bankruptcy lawyers have over 40 years of combined experience. They can tell you whether you can file a bankruptcy case.
I will never be able to get credit again if I file a bankruptcy case.
Not only can you get credit after the filing of a Chapter 7, you will usually begin getting offers for credit 4 months after your case is filed. If you manage your credit and maintain good employment you should be able to qualify for a home mortgage within 1 to 3 years after you receive your Chapter 7 discharge. We recently had a young couple call to tell us that they had just closed on their first house. They got a 30 year mortgage at a fixed rate of 5.6%. They closed on their new home with a 745 credit score just over 24 months after they received their Chapter 7 discharge. It was the filing of the Chapter 7 case, and the discharge of their old debt, that allowed them to finally purchase a home after 13 years of marriage. In another case, a client filed a Chapter 7 case, wiped out all of her debt, and a year later she was able to purchase a car with a 648 credit score. Her interest rate was 6% and she didn’t have to make a down payment. Bankruptcy can be used as a tool to help you get on the right path to financial freedom.
My creditors or the Trustee will embarrass me if I file a bankruptcy case.
Most people come into our bankruptcy lawyers, offices after having been harassed and bullied by collection agents. Our bankruptcy lawyers will put an end to the harassing phone calls. We will be by your side throughout the bankruptcy process. Bankruptcy hearings and meetings of creditors are handled in a professional manner and no one is allowed to harass or abuse a debtor. In most cases, no creditors come to the first meeting of creditors. For the majority of debtors, the first meeting is the only time they ever go to Court.
My employer will fire me if I file a bankruptcy case.
The filing of a bankruptcy case is a public record that anyone can see. However, there is no reason your employer has to know about your bankruptcy filing. In addition, federal law prevents anyone from firing you or discriminating against you simply because you filed a bankruptcy case.
My spouse has to file the bankruptcy case with me.
Married couples can file together or separately. There is no requirement that your spouse file a case with you.
I should give all my property away before I go see a bankruptcy lawyer.
If you are having debt problems you should NEVER transfer or give property away right before the filing of your bankruptcy case. Before making any transfer, sale, or assignment of property you should speak with an experience bankruptcy lawyer. Bankruptcy laws are very complex and transfers can cause you to lose your right to a discharge.
You can only file one bankruptcy case in your life.
You can file multiple cases during your lifetime. There are limits to how often you can file a case. Our bankruptcy lawyers can tell you, based upon your facts, if you are eligible to file a new case.
Debt management plans are better than filing a bankruptcy case.
Debt management plans rarely work and often leave people deeper in debt than when they first entered the program. Many “debt management” companies have been sued by various state attorney generals and the Federal Trade Commission for deceptive practices. Before you decide on one of these programs, you owe it to yourself to talk to an experienced bankruptcy lawyer. Our bankruptcy lawyers offer free consultations and they do not pressure you to hire me. Get the facts before you make any decision.
I should buy everything I might need on my credit cards before I file.
You can be denied a discharge for debt that you “run up” right before you bankruptcy case is filed.
Your Birmingham and Tuscaloosa bankruptcy lawyers can explain all of your options to you. You will not be pressured to hire us, or file a bankruptcy case. Your Birmingham and Tuscaloosa bankruptcy lawyers will explain your options to you for free.
How to Get Help and Get Out of Debt
When you are ready to get out from under your crushing debt, give Melinda Dionne a call at 205-349-5911 (Tuscaloosa) or 205-453-1012 (Birmingham) or click here. When you call, tell our assistant that you are a website reader and she will set you up with a free, no obligation, consultation to see how Melinda can help you start living again.
Tuscaloosa Office: 9217 Old Greensboro Road, Tuscaloosa, Alabama 35405 (205) 349-5911; Birmingham Office: One Perimeter Park South Ste 100N, Birmingham, Alabama 35243 (205) 453-1012.
The law firm of Melinda Murphy Dionne represents clients in Central and West Alabama including Birmingham, Tuscaloosa, Centerville, Fayette, Jasper, Moundville, Tuscaloosa County, Bibb County, Blount County, Fayette County, Greene County, Hale County, Jefferson County, Lamar County, Perry County, Pickens County, Shelby County, Sumter County and Walker County.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.
