12 Myths of Bankruptcy – Myths 10-12

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.

Let’s look at the next set of myths:

Myth #10: You can’t get rid of tax debts in a bankruptcy

Yes and no. There is such a thing as a tax bankruptcy. To be eligible, you need to have filed all of your returns and your tax debt must be at least three years old. Check with an experienced tax / bankruptcy attorney to find out if you are eligible.

Myth #11: You can only file bankruptcy once in your lifetime

You can file for chapter 7 bankruptcy every eight years and chapter 13 bankruptcy more often than that, as long as you only have one case open at a time.

Myth #12: I should max out all of my credit cards before I file bankruptcy

Not a good idea. Bankruptcy judges know to look for this behavior, and it is considered fraud.

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.