Bankruptcy Myths – They are false- do not believe it- talk to us and get a straight answer


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The truth is that you can still file bankruptcy and get a debt relief. Most of the bankruptcy myths are just created to confuse you and make you fell bad. Please understand that you have right to take advantage of bankruptcy protection if you qualify. Our San Jose Oakland San Francisco bankruptcy attorneys and lawyers will help to answer your bankruptcy questions.

Myth 1: Everybody will know that you have filed for bankruptcy

This is not true. While it true that bankruptcy record is a matter of public information, the only people who will know about you filing bankruptcy are your creditors, organizations and the people that told about it.


Myth 2: You will never be able to own anything again

You will still be able to own assets and things again if you can afford it. The best idea will be to start paying with cash then gradually establish credit. You may start with secured bank credit card and small department stores.

Myth 3: Both spouses have to file for bankruptcy

Not true. It depends on the circumstances. The spouse with all the credit cards may decide to file alone. This means that only the spouse who files bankruptcy will have his or her bankruptcy debts discharged. It is very advisable here for both married spouse to consult a bankruptcy attorney to discuss their legal options.

Myth 4: All my debts can be wiped off with bankruptcy.

You will be able to discharge most of your debts like credit card debts, judgments, hospital bills and lawsuits. However, there are certain that you may not be able to discharge easily. These not easily dischargeable debts include student loan, alimony, child support, and recent taxes.

Myth 5: It is very hard to qualify for bankruptcy.

This is not true. It all depends on who is filing for you. You do not want to file it yourself. At the law office of bankruptcy Geoffrey Nwosu, we know hoe to file bankruptcy and guide you all the way. We provide bankruptcy service to Santa Clara County, Alameda County and Mateo County.

Myth 6: You will lose everything you own.

This is not true for most people. In California, the exemptions protect such things as your retirement plans, the cash value in life insurance’ household goods and furnishings, IRAs, personal injury claims and equity in your home (from $50,000 to $150,000 depending on the circumstances). For people that don’t own a home, don’t feel bad, you can take advantage of the  “wildcard" exemption of $18,000 that can be applied wherever you want it. You may also consider filing chapter 13 and make payments to retain some of your non-exempt assets. You may also exercise your bankruptcy rights to redeem your loan, re-affirm your car loan, truck loan, or business loan. Alternatively, you may just surrender the property to the bankruptcy trustee.

Myth 7:  I will never get credit again.

Not true.  Filing bankruptcy gives you fresh start in the credit world. Filing chapter 7 bankruptcy will liquidate your unsecured debts and chapter 13 bankruptcy will rearrange your debt payment. You will be able to starting building a good credit after bankruptcy with small department stores and secured bank credit cards. I have clients that they purchased cars few years after bankruptcy with a little higher interest.

Myth 8: Only deadbeats file for bankruptcy

Not true. Many ordinary everyday people and even famous Hollywood people and Washington politicians file bankruptcy for different reasons such as serious illness, the loss of a job, separation or divorce, a failed business, hospital bills, accidents, or some family emergency. The economy and mortgage crises have not helped the situation for the past few years. It has been very difficult for honest descent honorable people to make good living.

Myth 9: It is difficult to file bankruptcy under the new law.

This is not true. The new actually benefits debtors. It introduced new requirements like the means test. However, an experienced attorney and lawyer will not have any problem in the application of this new test. It is very important that you contact our bankruptcy office to guide you through this process.

Myth 10: Creditors will continue to harass you and your family.

 Not true. The filing of your bankruptcy initiates a judicial process called the automatic stay. The automatic stay is one of the fundamental debtor protections provided by the bankruptcy laws. The automatic stay prohibits a creditor from attempting to collect a debt once the case has been filed. Creditors are not allowed to call you or send you collection letters. They also can not take or continue any legal action against you or repossess your car or other assets. The automatic stay stops creditor’s harassment. Please call the law office of Geoffrey Nwosu if you have questions regarding bankruptcy.

Myth 11: Filing bankruptcy means I am a bad person

Not true. Many good descent people fall on hard times and file bankruptcy too. The purpose of the bankruptcy code is to provide a person who has fallen on tough times a fresh start. Do not feel bad about filing bankruptcy. It is actually a descent and smart move to file bankruptcy and wipe off your debts if you cannot afford to pay them any longer. You maybe required turning over your non-exempt assets to the bankruptcy trustee for the benefit of the creditors. 

Myth 12: You can charge up credit cards before filing bankruptcy

Not true. Please do not use your credit card right before filing bankruptcy or you risk having your petition dismissed. The bankruptcy trustee may also require you to pay back the charge items. Creditors will challenge ant recent charges as an attempt to abuse the bankruptcy process.

Myth 13: You cannot file for bankruptcy protection more than once.

Not true. You are allowed by the bankruptcy code to file more than once. However, you can only file for a Chapter 7 bankruptcy once every 8 years. The restriction on filing for chapter 13 bankruptcies is not as restrictive.

Myth 14: Do not list all your debts

 Not true. This will actually create more trouble for you in the future. If you fail to list it, it may not be discharge in bankruptcy. This means that the creditor will still be able to come after you after the bankruptcy discharge. Please make sue that you list all you debts and creditors address since some of them may not even show up in your credit report.

Myth 15: Filing bankruptcy will lead to your divorce

Not true. Properly guided bankruptcy by an attorney will stop creditor’s harassment, foreclosures repossessions and sleepless night therefore reducing stress among couples. Honest descent people file for debt relief to relieve stress and this may actually strengthen their marriage. I have seen my client’s strengthen their troubled marriage after filing bankruptcy.

Please contact bankruptcy lawyer and attorney at our bankruptcy law office located in San Jose, San Clara County, Alameda County, San Mateo County, and San Francisco County area at 408-912-5983.

Geoffrey Nwosu San Jose ca bankruptcy attorney & lawyer Disclaimer: California bankruptcy attorney & lawyer, chapter 7 bankruptcy, chapter 13 bankruptcy, personal & consumer bankruptcy, foreclosure or other bankruptcy debt relief laws information presented at this site should neither be considered as a legal advise nor formation of attorney, lawyer or counsel relationship. Do not take any information presented here as a promise or guarantee. Contact our San Jose Oakland San Francisco bankruptcy & debt relief law firm to discuss your legal options on your particular case with our attorneys & lawyers. We do not take cases from outside the state of California

Law Offices of Geoffrey C. Nwosu

1710 Hamilton Ave.
San Jose, CA 95125

(408) 912-5983
(408) 375-7703



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