Bankruptcy Myths

Bankruptcy is No Longer Available.

False. The new bankruptcy laws have made the process more complex, and changed the eligibility requirements for certain people, but for most people, if they were eligible before, they are likely still eligible for bankruptcy relief.

I will lose all my property if I file bankruptcy.

False. Whether you get to keep your property depends on the value (or amount of equity) in any particular item of property and what exemptions you have available to protect the value in that asset. In the vast majority of cases in California, you will be able to keep your property and all personal belongings. Analysis by a bankruptcy professional is typically necessary to accurately make that determination.

Bankruptcy will destroy My Credit.

False. It is true that bankruptcy may be reported on your credit report for up to 10 years after your case is filed. However, the actual effect on your credit score varies depending on what your score was before you filed bankruptcy. The effect is temporary because you can start rebuilding your credit immediately after filing your case. In many cases, especially for people who have very low credit scores before filing bankruptcy, their credit scores actually go up shortly after filing bankruptcy, as long as they maintain payments on obligations thereafter.

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