bankruptcy myths From Our Springfield Bankruptcy Attorney

Filing for Bankruptcy Myths, Part 2

September 17, 2020 By Groce & DeArmon

Filing for bankruptcy is scary and stressful. You’re uncertain about your future, and you wonder how this will affect your finances moving forward. In today’s blog from the bankruptcy attorneys at Groce & DeArmon, P.C., we talk about more myths about filing for bankruptcy in part two of our series.

Myth 1: You Can’t Get Any Job

You cannot be denied a job because of your financial status unless you will be getting a job that requires you to be financially responsible. These jobs include the banking industry, executives, and managers who oversee company finances, and jobs that require you to manage some financial aspect of an employer. Our bankruptcy attorneys can counsel you about what an employer can and can’t do when/if they find out about your bankruptcy.

Myth 2: Your Retirement Savings Are Ruined

Retirement accounts are exempt from bankruptcy in Missouri. These include 401(k) accounts, IRAs, pensions, and retirement accounts for public workers. Our bankruptcy attorneys will make sure you understand which financial accounts are subject to scrutiny by the bankruptcy court and bankruptcy trustee.

Myth 3: Don’t Disclose All of Your Property

This is a huge mistake. Bankruptcy trustees will always find out what property you own. Hiding property can lead to criminal charges of bankruptcy fraud, and that can lead to even more drastic consequences than filing for bankruptcy alone. Missouri has exemptions for certain property, so it makes sense to disclose all of it. Our bankruptcy attorneys can examine your situation to find the best possible solution for you.

Myth 4: Debt Consolidation Offers a Better Alternative

Debt consolidation often delays the inevitable. The money you spend on debt consolidation could go towards filing for bankruptcy and a fresh start.

Myth 5: Sell Your Property Before Declaring Bankruptcy

Never do this. The bankruptcy trustee may see this as an attempt to defraud your creditors. You can’t even sell your property to relatives, because the bankruptcy is in your name and not theirs. Again, you can be criminally charged with fraud. Selling your assets may take too long, and you might not be able to pay all of your debts anyway. Talk to our bankruptcy attorneys about what you can do (legally) to protect your assets.

Talk to Bankruptcy Attorneys at Groce & DeArmon, P.C.

Are your creditors calling you daily, even on the weekends? Do you need debt relief? Are your bills overwhelming you? Chapter 7 or Chapter 13 bankruptcy may offer a solution. Contact Groce & DeArmon, P.C. or call toll-free 1-800-640-3706 in Missouri or 417-862-3706 for more information or a free consultation about filing for bankruptcy.

Chapter 7 Bankruptcy Myths

March 14, 2018 By Shari DeArmon

Unlike Chapter 13 bankruptcy, Chapter 7 does not involve filing a payment plan. Instead, the bankruptcy trustee will liquidate any of your non-exempt assets and use the proceeds to pay off your creditors. Due to misconceptions about the liquidation process, many people hesitate to file for Chapter 7 Bankruptcy. Luckily, most of these misconceptions are far from the truth. To clear up any confusion, the bankruptcy attorneys at Groce & DeArmon, P.C. debunk the most common Chapter 7 Bankruptcy myths.

Myth #1. You Will Lose Your Home

When most people think of Chapter 7 Bankruptcy, they imagine selling off their house to pay off their debts. Although some people will sell their home, this is not the case for everyone. In fact, you can keep your house if you are up-to-date on your mortgage payments or if the equity of your house is protected under the exemption laws for your state. To see if your house falls under these exemption limits, consult a bankruptcy attorney.

Myth #2. Your Credit Will Be Permanently Damaged

Some people believe that filing for Chapter 7 Bankruptcy will permanently damage their credit score. Others believe that their credit score will be better off if they file for Chapter 13 instead. In reality, your credit score will be impacted the same way regardless of how you file. Typically, bankruptcy will appear on your credit report for approximately 10 years. However, this does not mean that you cannot get a loan during this time. After a few years of financial stability, many lenders are willing to work with you.

Myth #3. You will Lose Your Retirement

In a Chapter 7 Bankruptcy case, many assets are protected by exemption laws. This includes some of your retirement assets as well, including your 401k and any IRAs. However, if you recently removed money from your retirement fund to pay off debts, this money will be used to pay off creditors during the liquidation process.

Myth #4. Filing for Chapter 7 Bankruptcy is Too Complicated

Yes, filing for Chapter 7 Bankruptcy is a time-consuming process that requires a large amount of paperwork. This is why it is recommended that you work with an experienced bankruptcy attorney. If you are looking for a bankruptcy attorney, contact Groce & DeArmon, P.C. today.

Related Post: Filing for Bankruptcy Myths, Part 2

Contact Groce & DeArmon, P.C.

For over 25 years, Groce & DeArmon, P.C. has provided legal aid in the Springfield, MO area. Specializing in bankruptcy law, we will help you declare bankruptcy, file for either Chapter 7 or Chapter 13 Bankruptcy, and prepare your case for court. Our team of experienced attorneys is prepared to hear about your case and help you get a fresh start. To set up a free consultation, contact us today or call 1-800-640-3706.

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