A Personalized, Sensitive
Approach To Bankruptcy
Dispelling Common Bankruptcy Myths
Many people delay filing for bankruptcy as long as they can. Bankruptcy is often referred to as a last resort. Unfortunately, it is far too common for individuals to continue suffering the stress and anxiety that come with an unmanageable debt load due to misconceptions of what bankruptcy is all about.
At The Law Office of Kim Covington in Eugene, I frequently dispel common myths about bankruptcy. Many individuals, families and small-business owners have valid questions about obtaining true debt relief. For that reason, I offer a free and confidential initial consultation to members of the community who have concerns about what bankruptcy can and cannot do.
As a focused bankruptcy lawyer, I have compiled a brief list of common misbeliefs people hold about the bankruptcy process in Oregon:
Myth: I will have to start from scratch after losing everything in bankruptcy.
Many individuals have the misconception that they will lose everything they own if they file for bankruptcy. In truth, many assets are exempt from creditors and the bankruptcy estate under Oregon law or under the federal Bankruptcy Code exemptions. Most assets other than extra luxuries are exempt. I can review your options under Chapter 7 and Chapter 13 bankruptcy. Most people can retain their assets with the flexibility of the law. Bankruptcy is intended to provide individuals and families with a respectful fresh financial start.
Myth: Filing for bankruptcy will destroy my credit rating.
A bankruptcy will be reported to the credit bureaus. However, that does not necessarily mean that your credit rating cannot ever recover from bankruptcy. In most instances, credit ratings have suffered from the insurmountable debt people have carried. Often, credit scores improve quickly after a bankruptcy discharge as there are no longer any outstanding balances on credit cards, medical debts and other obligations. Rebuilding credit is highly possible following bankruptcy.
Myth: I will never be able to get credit, a car loan or home loan if I file bankruptcy.
Rebuilding credit is important, especially in today’s economy that often focuses on electronic transactions. Many people can get new credit cards immediately after bankruptcy. Car loans are common and home loans are often available after a short time — possibly as few as two to three years after a bankruptcy discharge.
Call To Speak Discreetly With A Compassionate Bankruptcy Attorney
I offer reasonable rates, flexible scheduling and honest guidance about how bankruptcy can or cannot help people in Oregon. To arrange a confidential consultation at no cost to you, send me a message online now or call 541-393-2790 or 800-673-1891.