Bankruptcy Myths

Norman E. Rouse, Esq. and Collins, Webster & Rouse, P.C. help individuals and businesses, including farmers, find relief from debt. It is your right under federal law to use bankruptcy to confront and overcome your debt situation. By selecting us as your bankruptcy lawyers in Joplin, you or your business will obtain help from experienced local attorneys who can guide you or your company through these difficult times, and do so with the empathy you deserve.

It is understandable that you may hesitate to hire a bankruptcy law firm in Joplin for a variety of reasons that may, in the end, not be true. Some of these popular misconceptions are addressed below.

Myth #1 – Everyone will know that I’ve filed for bankruptcy.

False, for several reasons. First, your interactions with us are subject to attorney-client privilege, so whatever you say to us will be held confidential. Second, although a bankruptcy filing is a public record, no one will know that you have filed with the court unless they go to the court and go through all of the bankruptcy filings, or see a notice of such filings in a local newspaper. But check your local newspaper. Many local papers do not routinely publish bankruptcy filings. For example, the Joplin Globe doesn’t publish information about bankruptcies unless specifically requested to do so by an attorney or the court. Third, unless you’re a prominent person or a major corporation, media reporters likely will not be interested in reporting about your filing. Finally, by using us – i.e., attorneys who routinely practice bankruptcy law in Joplin – you will benefit from our experiences in keeping bankruptcy filings private in the community.

Myth #2 – I’ll lose everything.

False. There are exemptions to protect certain kinds of assets. For individuals filing for bankruptcy, your house, your car, your clothing and more may be protected. Many people are able to receive a discharge of their debt in bankruptcy without having to sell any assets at all. We can explain to you what assets are protected before you make a decision to file for bankruptcy.

Myth #3 – All of my debts will go away.

Not necessarily. With Chapter 7 bankruptcy, certain debts cannot be discharged, such as child support, alimony, government-issued student loans and fraud-related debts. Talk to our bankruptcy lawyers in Joplin about what type of bankruptcy is right for you, and which debts can and cannot be discharged.

Myth #4 – I won’t be able to get rid of back taxes.

Not necessarily. It’s possible that some taxes can be eliminated through bankruptcy, especially ones that came due more than three years ago.

Myth #5 – I’m married, so my spouse and I have to file for bankruptcy together.

Not necessarily. If you have separate debts, the person with the debts can file a bankruptcy case by themselves. But if you and your spouse are both liable for the debts, you’ll probably need to file for bankruptcy together.

Myth #6 – My credit rating will be ruined forever.

False. You can start rebuilding your credit rating very soon after a bankruptcy. Initially, you may be able to get only high-interest credit cards, for example. But if you pay the bills on time, you’ll be on the road to raising your credit score.

Get More Answers from a Joplin, MO Bankruptcy Law Firm

Norman E. Rouse, Esq. and Collins, Webster & Rouse, P.C. can provide more details about these issues and answer any other questions you may have about pursuing bankruptcy for yourself or your company. Please contact Norman E. Rouse, Esq. and Collins, Webster & Rouse, P.C. to discuss your options under bankruptcy law. Call us for a free consultation at 417.782.2222, or send an email to [email protected].

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