Bankruptcy Myths Serving Families Throughout Fresno

Debunking Bankruptcy Myths

Our Fresno Bankruptcy Lawyers Reveal the Truth

Bankruptcy can be a very confusing area of law to navigate, but we are here to clear up common myths. Learn the difference between what is fact and what is fiction with help from Fear Waddell, P.C.’s Fresno bankruptcy lawyers. Contact us today!

Myth 1: Under the NEW Bankruptcy Law, There’s No More Bankruptcy

Fact: This is not true. Some also believe you cannot file Chapter 7 or you have to make payments, but this is also false. The new law requires you to do a little more, but most people will still be able to file for a Chapter 7 bankruptcy under the new law. The truth is that you can do almost everything under the NEW law that you could do under the OLD law.

Myth 2: Everyone Will Know You Have Filed For Bankruptcy.

Facts: Unless you’re a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors and the people who you tell. While it’s true that your bankruptcy is a matter of public record, the number of filings is so massive, that unless someone is specifically trying to track down information on you, there is almost no likelihood that anyone will even know you filed.

Myth 3: You Will Lose Everything You Have.

Facts: Nothing could be further from the truth. Most people who file bankruptcy don’t lose anything. While laws vary from State to State, every State has exemptions that protect certain kinds of property. In California for example, there are exemptions that can be used to protect your household goods and personal effects, your car, your house, IRAs retirement plans, wages, and personal injury claims, just to name a few.

There is even a “wildcard” exemption that can be used to protect up to $20,000 in any type of asset. And if there is property that is not exempt, you may still be able to keep the property and wipe out the debts by doing a Chapter 13 plan and paying creditors some of what they owe. It is important to remember that filing bankruptcy does not generally wipe out liens.

So if you want to keep a car, truck, home or business equipment that serves as collateral for a loan, you need to keep paying on the debt. You may also need to reaffirm the debt, depending on your particular situation. If you have questions about how this works, feel free to set up a free consumer consultation.

Myth 4: You Will Never Be Able to Own Anything Again.

Facts: This is false. A bankruptcy filing does not prohibit you from owning property. In the future, you can buy, own and possess whatever you can afford. In fact, by getting rid of your debt, it may be easier for your to hold property in the future without it being seized by creditors.

Myth 5: You Will Never Get Credit Again.

Facts: Quite the contrary. Filing bankruptcy gets rid of debt, and getting rid of debt puts you in a position to handle more credit and makes you look more attractive to would-be lenders. In my experience, unfortunately, it won’t be long before you’re getting credit card offers again. I say “unfortunately” because I don’t want you to get right back in debt again.

At first, the would-be lenders will want more money down and will want to charge you higher interest rates. However, over time if you are careful, and keep your job, and start saving money, and pay your bills, and do things that will put good marks on your credit report, the quality of your credit will get better and better.

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Why Choose Fear Waddell, P.C.?

  • Board Certified Bankruptcy Attorneys
  • Free Consumer Consultations
  • 1,000+ Bankruptcy Case Filings
  • Decades of Combined Legal Experience

Testimonials

Serving Fresno, CA Since 2014

    "Excellent attorney. I give an A+"
    I am a senior citizen and Gabriel took me by hand, guided me through the process of bankruptcy with patience, caring and most of all he cared about my feelings and the stressful time I was going through.
    - Former Client
    "Highly recommended."
    If Bankruptcy is absolutely your only option and Dave Ramsey's program is too far out of sight, or in my case, a start-up business gone sour, I would HIGHLY recommend Gabe Waddell and the staff over at Fear Law Group.
    - Former Client
    "Thank you so much for all your help through the stressful time."
    He's very professional, informative, answered whatever questions I had, a great listener and returned phone calls promptly.
    - Sandi
    "Professional, comfortable environment run by top shelf people."
    From the moment we started this, though, Peter Fear and the staff there made us feel comfortable and removed the worry and confusion that we were expecting would overwhelm us.
    - Gerone
    "I am extremely happy that I found Peter Fear."
    Peter was a consummate professional, advising me on the process and guiding me through the steps. He answered every question quickly and clearly, which gave me the utmost confidence that my decisions were the correct ones to make.
    - Former Client
    "Attorney Waddell and his excellent staff have been fantastic to work with."
    They do everything within their power to work with the client's special timelines and do everything possible to make the process flow smoothly and efficiently.
    - Cynthia
    "I am beyond grateful to Mr. Fear and Mr. Waddell for their help during a tumultuous time."
    Many of the other attorneys in our hearing were not prepared, missing documents and ultimately ended up being rescheduled. Peter was prepared and the proceedings moved forward without incident.
    - Craig
    "Peter Fear is the best attorney out there."
    He helped guide us through a very difficult and trying time in our life and answered all of our questions and got us through it, and we are forever grateful to Mr. Fear and his staff for everything.
    - R.N.