Bankruptcy Myths: Should I File Bankruptcy?

If you are struggling with debt and considering bankruptcy, don't let common misconceptions and myths get in the way. Learn all you can about bankruptcy and talk to a lawyer who can discuss specific debt relief solutions for your financial circumstances.

At Derren S. Johnson & Associates, we can help you determine if Chapter 7 bankruptcy or Chapter 13 bankruptcy is right for you — or if another debt relief option is more appropriate. Contact our law firm in Baton Rouge to set up an initial consultation.

Bankruptcy: Questions and Answers

Is bankruptcy right for me?

It may be, but remember: There is no one-size-fits-all approach to seeking debt relief. There are several points to consider to determine if bankruptcy is right for you, including how much debt you have, the type of debt you have, and your personal goals. If you want to keep your house, Chapter 13 bankruptcy may be your best option. If you wish to simply walk away and make a fresh financial start, Chapter 7 bankruptcy may be appropriate. We can discuss your specific options when you come to our law office for a consultation.

How many times can I file bankruptcy?

An individual can file Chapter 7 bankruptcy once every eight years, Chapter 13 may be filed more often. There are additional things to consider if you have previously filed bankruptcy, so it is important to discuss your specific circumstances with a bankruptcy lawyer.

How does bankruptcy work?

Chapter 7 bankruptcy works by eliminating an individual's debt, while certain assets are sold to settle claims with creditors. In Chapter 13 bankruptcy, an individual's debt is reorganized, and a repayment plan spanning three to five years is established. In Chapter 13, you do not lose any assets. Both types of bankruptcy stop creditor harassment, wage garnishment, and lawsuits. Chapter 13 bankruptcy stops foreclosure.

Will bankruptcy ruin my credit?

Remember: If you are considering bankruptcy, your credit is probably already damaged. When you obtain debt discharge through bankruptcy, you are able to make a fresh financial start. Often, individuals who file bankruptcy are able to immediately begin rebuilding their credit. So while it is true that bankruptcy will stay on your credit report for up to 10 years, it is likely to suffer more if you do not act to clear your existing debt.

I have a judgment against me — can I still file bankruptcy?

Yes, you can still file bankruptcy even if you have been served with a lawsuit. In most cases, bankruptcy will eliminate the underlying debt. Find out more about garnishments, judgments, and liens in bankruptcy.

Contact a Baton Rouge Bankruptcy Lawyer

Learn more about bankruptcy by scheduling a free consultation with bankruptcy attorney Derren S. Johnson.