Purposeful Advocacy for New Jersey
A Path Forward for Your Finances, Your Family, & Your Future

Debunking Bankruptcy Myths

Filing for bankruptcy can be stressful and overwhelming. Bankruptcy itself has an unfortunate negative stigma attached to it. While many people should think of it as an opportunity to clear your financial slate and start fresh, the general public often views it as a bad thing. In fact, many people have a lot of misconceptions about bankruptcy that are simply not true. Some of the myths of bankruptcy include:

  • You will never be able to fix your credit. Not true. You will be able to fix your credit score and it won’t take all that long. If you get a credit card after bankruptcy and only put small purchases on it that you know you will be able to repay in full each month, your score will climb back up as time passes.

  • You will lose all of your possessions. Again, this is not true. Depending on which type of bankruptcy you will file for, you are subject to certain exemptions for what you are allowed to keep. These can include your car and home, depending on the situation.

  • Bankruptcy will be on your report forever. The truth here is that bankruptcy will only stay on your credit report for 10 years. This does not mean that you will not be able to take out a loan or get a mortgage. You will still be able to rebuild your credit score immediately after filing, despite having a bankruptcy on your record.

If you need strong legal representation for bankruptcy, contact our firm today.

Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.