Myths About Bankruptcy

Part of any bankruptcy lawyer's job is to correct the many bankruptcy myths that surround our practice. At Prescott Pearson & Tande, PA, we are passionate about helping our clients fully understand the bankruptcy process. For more than 40 years, we have been ensuring that our clients know the truth about all chapters of bankruptcy in Minnesota.

Correcting Bankruptcy Myths in Minnesota

A few of the myths we hear a lot include:

  • I will lose all of my property if I file for bankruptcy. False. You are able to keep many, if not all of your assets due to the bankruptcy exemptions under Minnesota law.
  • Credit card debt cannot be eliminated. False. This is considered an unsecured debt and can definitely be eliminated or reduced in bankruptcy.
  • Medical bills and other medical debt stays forever. False. Just like credit card debt, medical debts can be eliminated through either a Chapter 7 or Chapter 13 filing.
  • I have to have a certain amount of debt to file. False. There is no requirement that you have to have a certain amount of debt to file for bankruptcy. If you are struggling and need debt relief, we can help.
  • My credit score will be ruined forever. False. Most individuals who file for bankruptcy can be back on their feet again in a few years. Our lawyers will help you through the process of rebuilding your credit.

What Myths Are True?

There are a few bankruptcy myths out there that are true. For instance, many taxes and most student loans are not able to be discharged in bankruptcy very easily. There are situations in which our team can attempt to have these debts eliminated, however.

Alimony and child support payments are also not able to be discharged through the bankruptcy process. For more information on exactly what you can and cannot do through the bankruptcy process, reach out to an experienced lawyer regarding your specific options.

Call for a Free Consultation Today

  • Minneapolis-St. Paul Area: 651-968-8096
  • Minnesota Toll Free: 888-366-0827

For a free initial consultation regarding your bankruptcy options or to clear up any bankruptcy myths you may have heard, call us or contact our attorneys online today.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.