10 Bankruptcy Quick Points: True or False

False. Most consumers who file bankruptcy are able to keep all of their property, including their home, vehicles, bank accounts and retirement accounts. Bankruptcy can also be an effective way to stop foreclosures or prevent repossessions.

False. Your creditors must immediately stop all collection efforts once they receive notice that you have filed for bankruptcy. The collection efforts that must stop include phone calls, letters, repossessions, utility shutoffs, foreclosures, garnishments, credit card lawsuits and other civil lawsuits.

False. Bankruptcy will not ruin your credit for life. In fact, it may improve your ability to obtain new credit faster than continuing to struggle with your debts as they currently exist. Bankruptcy can actually be the first step in rebuilding your credit.

False. Most people who file bankruptcy are good people who are suffering from an unfortunate situation. Most people file bankruptcy due to health issues, loss of income or divorce.

False. You may be eligible to file bankruptcy again. To find out, please contact us.

False. At EDF LAW, in addition to having competitive rates, we offer affordable monthly payment plans. We can help you implement a plan to pay your legal fees on your budget.

False. Your employer cannot fire you as a result of your bankruptcy filing. It is against the law.

This will depend on your debt balance and your current income. Most consumers will blindly enter into an agreement with a debt settlement company or credit consolidation company without fully appreciating the likelihood of successfully completing such programs. You should contact a bankruptcy attorney before you attempt to resolve your debts through one of these programs. The consultation is free and you will know ALL of your options before paying someone to help you. Not all consumers are able to resolve their debt situations through one of these companies and they end up filing bankruptcy anyway.

Be careful when dealing with debt settlement companies or credit consolidation companies. Some of these companies are scams. Do not let them take advantage of you, your situation, or your money. The best way to avoid becoming a victim is to get informed and ask a lot of questions. If it sounds too good to be true, it probably is.

False. Your bankruptcy filing will not circulate in the general media. In most cases, your family, friends and co-workers will not find out you filed bankruptcy unless you tell them.

True. Bankruptcy may be an option that can help you save your home from foreclosure. If you are behind on your mortgage payments, you should contact us today!