Bankruptcy Myths & Basics

Dispelling Myths About Filing Bankruptcy in Texas

There is a lot of misinformation about bankruptcy. Some of the most common myths come from credit card companies that are trying to scare people away from filing for bankruptcy. At the Maida Law Firm, P.C., they offer a free case evaluation for clients in Beaumont and Houston. The purpose of this consultation is to replace misinformation with a clear understanding of the facts based on the particulars of your financial situation. The firm has an office in Beaumont, as well as a Houston satellite office available by appointment only.

The firm serves clients throughout southeast Texas and the Texas Gulf Coast. These are some of the most common bankruptcy myths that the attorneys hear:

Common Misconceptions About Bankruptcy

Myth: You can't file bankruptcy if you have a job.
Fact: Most people with serious debt problems are eligible to file either Chapter 7 or Chapter 13 bankruptcy.

Myth: Filing bankruptcy will ruin your credit.
Fact: If you are behind on your bills, your credit may already be about as low as it can go. Filing bankruptcy can actually be the fastest way to rebuild your credit.

Myth: You will lose all of your property if you file bankruptcy.
Fact: In Texas, you can keep all equity in your homestead, your retirement savings and up to $60,000 in personal property when you file bankruptcy. You can also keep your car and home as long as you continue to make payments. Only an experienced bankruptcy lawyer can tell you if you have any assets you would lose.

Myth: Debt settlement or consolidation is an alternative to filing bankruptcy
Fact: In most cases, debt settlement and consolidation services only land a person deeper into debt and may even result in a large tax bill to the IRS. The only sure way to discharge debt without creating a tax obligation is by filing bankruptcy.

Beaumont bankruptcy lawyers from the Maida Law Firm, P.C. have been handling bankruptcy cases for more than 40 years. They understand the basics and know what the myths about bankruptcy. They offer a free initial consultation to dispel bankruptcy myths and answer your questions about bankruptcy. Call our Beaumont office today or our Houston satellite office!

Contact a bankruptcy lawyer from the firm for help with Chapter 7 and Chapter 13 bankruptcy.

Get the Legal Help You Need Now!

Start with our FREE case evaluation

Request My Free Consultation