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Bankruptcy Myths and Misconceptions in Texas

Austin Bankruptcy Protection Attorney

What you know about bankruptcy may be wrong. At the law firm of Hickson Law, PC, in Austin, Texas, the attorney certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization encounters many people who are overwhelmed by debt but hesitant to file bankruptcy because of misconceptions they have about the process. She takes pride in explaining the realities behind the bankruptcy myths.

Bankruptcy Is Still a Viable Option Under the New Bankruptcy Law

There are many myths tied to the new bankruptcy law. For example, that it is now difficult to file or that you have to take a test, and that even if you file creditors can continue to collect or repossess. Although the new law has placed some new procedural hoops to jump through, we can still do almost everything under the new law that we could under the old law.

Filing for Bankruptcy Does Not Mean You Are a Deadbeat

The vast majority of people who file are good, honest and hardworking people who are seeking relief as a last resort. Most bankruptcy filings are related to some life-changing experience such as job loss, illness, divorce, family emergency or a failed business. The bankruptcy law is a legal remedy that was created to deal with these situations and provide people with legal cover from the predatory practices of creditors.

Bankruptcy Will Not Financially Ruin You Forever

One of the prevailing myths about bankruptcy is that it will leave you financially ruined and unable to get credit. This is not accurate at all. You will be surprised by the true effect of bankruptcy on credit. In fact, creditors themselves may say that it does not matter that you have filed bankruptcy. You will get offers for new credit cards surprisingly soon.

Bankruptcy Will Not Cause You to Lose Everything You Own

Do you want to know what property can be kept in bankruptcy? For most people, all of it. If your property cannot be preserved in Chapter 7 bankruptcy, you may be able to preserve it in Chapter 13 bankruptcy. A skilled lawyer can make certain that all of the assets that are important to you are protected through the consumer bankruptcy process. The fact is that most people do not lose anything except their debt.

There Are Few Effective Alternatives to Bankruptcy

Aside from catching up and paying off your bills, there is not much that can be done to eradicate debt, outside of filing bankruptcy. All of the alternatives to bankruptcy you see advertised on television may look good, but they simply do not provide you with any leverage, and you remain at the mercy of the creditors.
Generally, the people running the debt consolidation and debt settlement businesses do not represent you. They are working for or they are subsidized by the creditors. Unlike your attorney, they do not owe you any duty to represent you or to look out for your best interest. More often than not, these programs leave people worse off than before.