12 Myths of Bankruptcy – Myths 1-3

Bankruptcy – whether it’s chapter 7 or chapter 13 – has a lot of negative connotations, and a lot of fears and myths surrounding it. But when you simply can’t pay your obligations with your current income, filing bankruptcy in Arizona is a legal, ethical, and dignified way to make a fresh start.

At The Pew Law Center, PLLC, we are Arizona’s premier debt relief firm. In this series of blog articles, we will help dispel the top 12 myths about bankruptcy.

Myth #1: Everyone will know

It’s true that bankruptcy is a matter of public record, but unless you are enough of a celebrity that the news picks up your story, chances are slim that anyone but your creditors will know about your bankruptcy.

Myth #2: Chapter 7 bankruptcy wipes out all of my debts

While most of your debts are wiped clean in a chapter 7 bankruptcy, certain types of debts are not. These include student loans, child and spousal support, and certain judgments against you arising from fraudulent or negligent behavior.

Myth #3: I will lose everything

Many people are afraid to file for bankruptcy because they are afraid they will end up wearing an empty barrel and living in a cardboard box. Arizona has exemptions that allow you to keep your clothing and other personal belongings and even your home and car (up to a certain value). Contact an experienced bankruptcy attorney to find out what assets you will be allowed to keep.

At The Pew Law Center, PLLC we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.