The Truth About Bankruptcy
At Prescott & Pearson, P.A., we know bankruptcy law and have spent decades building trust and credibility with the judges, trustees and creditors' attorneys who are involved with Minnesota bankruptcy cases. In fact, this is all we do, and we've been doing it well for more than 35 years.
Having handled over 70,000 cases, we also know that there's a lot of misinformation out there and that people have a lot of mistaken ideas about bankruptcy.
Here are a few of the biggest:
Bankruptcy Myth #1: I can't qualify for bankruptcy's debt relief under the new laws.
- Truth: This is rarely the case. In fact, the vast majority of people who would have qualified under the old laws will still qualify today — even under Chapter 7. However, it is recommended that you hire an experienced attorney to make the most of bankruptcy's opportunity for a fresh start.
Bankruptcy Myth #2: I'll never get credit again.
- Truth: You'll probably start receiving credit card offers sooner than you think. Much sooner. While those offers may have unfavorable terms, there are ways to start rebuilding your credit immediately. In 12-18 months, you'll probably be able to get decent terms on a car loan. In three to four years, you'll probably be able to get a mortgage on decent terms as well.
Bankruptcy Myth #3: Everyone will know.
- Truth: Bankruptcy is a matter of public record but, aside from your creditors who receive notice, no one will usually know that you have filed unless you tell them. Bankruptcy lists are seldom, if ever published anymore in the general local papers unless you have a business case. You should also realize that bankruptcy doesn't carry much social stigma anymore. Unemployment, a major illness, divorce, credit cards, taxes — these things can and have pushed people from all walks of life into bankruptcy court.
Bankruptcy Myth #4: I'll be left with nothing.
- Truth: Even if you file under Chapter 7 and lose your home to foreclosure, you'll probably be able to keep all of your personal property. The reason is that even though many personal items have value to you — most won't have enough resale value to put you over the exemption limits.
"This Is All We Do and We Do It Well."
Minneapolis-St. Paul: 651-968-8096 / Statewide Toll-Free: 888-366-0827
We treat our clients with dignity and respect at all times, never looking down on anyone for finding themselves in financial trouble.
For answers to any other questions about bankruptcy in general, or about your specific situation and concerns — don't hesitate to call or contact our lawyers in the Twin Cities area for a free consultation.
