Debunking Common Bankruptcy Myths

Markowitz O'Donnell, LLP, helps individuals and companies in Lawrenceville, Trenton and throughout New Jersey through the bankruptcy process. If you are struggling with credit card debt, medical bills or other financial hardships, we will assist you to turn your life around. Our lawyers focus on providing personal attention and affordable solutions to our clients.

Clearing Up Common Bankruptcy Myths in New Jersey

  • You can only file for bankruptcy once: False. An individual can file for Chapter 7 multiple times as long as he or she has had at least eight years pass since his or her last filing. Other chapters of the Bankruptcy Code have similar time restraints.
  • Your credit will be permanently destroyed after bankruptcy: Not true. It is possible to start rebuilding your credit immediately after filing. Our attorneys have helped clients turn their credit around in as little as three years.
  • New bankruptcy laws make it impossible to file bankruptcy: No. While the newer bankruptcy laws have added certain requirements to filing bankruptcy, many individuals still qualify.
  • You will lose your job if you file bankruptcy: Not true. Federal law prohibits employers from firing employees simply because they have filed bankruptcy.
  • You should max out your credit cards prior to filing bankruptcy: Absolutely not. This is fraud and there are severe consequences for participating in behavior like this. If a trustee determines that you did not have the intention to repay your debt, you will not receive a discharge in bankruptcy, meaning you will still owe money.
  • You will lose all of your property if you file: False. There are many property exemptions under both federal and New Jersey state law that protect your interests.
  • Creditors can still harass you after filing: False. Creditors must stop harassing you as soon as an automatic stay is issued by the court.

Contact Us to Find Out How Bankruptcy Can Help You

If you have questions regarding bankruptcy, we can provide answers. Contact us today to discuss your situation in detail. Call 609-482-3138 or 866-437-1189 to schedule a consultation.