Get The Facts About Bankruptcy From The Killeen Bankruptcy Attorneys Of Wm. Barry Phillips, P.C.
Sometimes the words of well-meaning friends or relatives who do not fully understand the bankruptcy process keep people from filing. At Wm. Barry Phillips, P.C., based in Killeen, our lawyers help people understand the facts about bankruptcy. We are a trusted resource for people facing financial turmoil and have found that by dispelling myths about bankruptcy, we can help people make educated decisions.
Myth: Debt consolidation agencies are just as helpful as or more helpful than bankruptcy.
Many people seek out so-called debt consolidation agencies in an attempt to work out their financial problems. When you work with a debt consolidation agency, you will pay this agency a fee to negotiate payment plans with your creditors. Unfortunately, debt consolidation agencies may not be able to stop interest and fees. In fact, your creditors can still bring lawsuits against you if they desire. As a result, people can pay debt consolidation agencies for years without making a dent in their debts. By filing bankruptcy, you may be able to either discharge your obligations in Chapter 7 or repay some of your debt in Chapter 13 without worrying about lawsuits, garnishments or other actions, giving you containment of the debt problem with a finality that debt consolidators cannot guarantee.
Myth: By filing bankruptcy, I will never be able to buy anything on credit again.
If you are thinking about filing bankruptcy, your credit rating is likely already poor. While a bankruptcy can stay on your credit report for up to 10 years, you will rehabilitate your credit rating much faster in bankruptcy than by being a “credit outlaw.” Once your debts are discharged in bankruptcy, you will have a lot less or maybe no debt, thus improving your ability to pay new debt and making you a more attractive credit risk than you otherwise would be. In addition, you will not be able to file bankruptcy again for some time. This alone means that you will be a more attractive candidate to lenders. Most of our clients report getting credit card solicitations weeks after their bankruptcy discharge. In fact, many of our clients are able to purchase cars on credit immediately after getting a discharge. You will likely be able to buy or refinance a home within two years if you take care of the credit you do get and otherwise qualify.
Myth: I will lose everything if I file for bankruptcy.
Filing bankruptcy is not meant to punish people. In Chapter 7, you likely will be able to keep all of your property. You could lose any property that is not exempt, but most people who qualify for Chapter 7 have few if any assets that cannot be protected. If you do have assets that could be lost in bankruptcy, you may be able to file Chapter 13 and work out a plan to repay a portion of your debt and keep your nonexempt property.
Myth: Everyone will know if I file for bankruptcy.
While bankruptcy is a matter of public record, it is unlikely anyone will find this information unless you owe them money or they are actively looking for it. If you are concerned about feeling ashamed of filing bankruptcy, consider this: Hundreds of thousands of Americans file bankruptcy every single year. Bankruptcy is not a moral failing; rather, it simply is a sign that you are having the same or similar financial problems that have afflicted so many others.
Contact Wm. Barry Phillips, P.C.
We are a debt relief agency. We provide legal representation for people filing for bankruptcy relief under the Bankruptcy Code.