I heard you can’t file bankruptcy any longer to get rid of debt. Instead, you have to pay everyone back.

No, this is not correct.  In 2005, there were some significant changes to the bankruptcy laws.  However, most of these changes only effected individuals in high income brackets.  You can still eliminate your unsecured debt through Chapter 7 bankruptcy.

My friend told me that even if I file bankruptcy I will still have to pay the debt back in the future. Is this true?

No.  This is not true.  Some debts such as student loans, fines, some taxes are not eliminated by bankruptcy.  However, unsecured debt is permanently eliminated in Chapter 7 and in some case Chapter 13 bankruptcy.  Talk to your attorney about any concerns to insure your debt will be eliminated. Bankruptcy misconceptions are rampant.  Get the truth about what to expect from a qualified attorney.

My mother said that someone will come from the bankruptcy court to sell our furniture and belongs. Will I lose everything?

No.  This is not accurate.  A good attorney will be able to properly protect all of your property.  In some cases, where you have value or equity that can not be protected your attorney can help you resolve this and/or discuss other options so the bankruptcy court and trustee will not be able to take the property.

Does it matter which attorney I choose to file bankruptcy with?

It can.  Most attorneys who practice bankruptcy have specialized in the field for a number of years.  During your consultation ask the attorney how many years they have practiced bankruptcy.

Can I purchase a car after bankrkuptcy?

Yes. You can purchase a car after bankruptcy.  There are no limitation on when you can purchase a car after your bankruptcy is discharged.  The only considerations are what interest rate will you be eligible for and what can you afford. The longer you work on recovering your credit score the lower your interest rate will be.  Rushing costs you money.

How often can a person file bankruptcy?

You can refile bankrupty every eight years from the time of filing in a Chapter 7.  A Chapter 13 can be filed more often within some restrictions.


Considering bankruptcy can be a confusing and emotional process. This process is often filled with misinformation. We have helped thousands of people just like you work through that process. We are here to help you too.


Did you know, the three main causes of bankruptcy is divorce, severe illness and job loss? Many people are afraid of bankruptcy because it seems like an admission of failure. Nothing could be further from the truth.