West Valley City Debt Relief Lawyer
Perhaps the most unfortunate myth about filing for bankruptcy is that the recent law passed by Congress will make it impossible for you to obtain bankruptcy protection. The Bankruptcy Abuse Prevention and Consumer Protection Act was passed in 2005. Many creditors felt that bankruptcy law was being abused, and that debtors were filing bankruptcy to avoid debts that they actually could and should pay.
The most significant effect of the law is the "means test." It prevents only a very few people from filing for Chapter 7 bankruptcy. Your income is compared with the median income of a family the same size as yours, in your state. If it is higher, you must then compare your income with your debts. If you have high income and low debts, you will probably not be allowed to file under Chapter 7. Most people will qualify, however, and Chapter 13 bankruptcy is available for most who cannot file under Chapter 7.
Other Myths
Myth: Filing for bankruptcy is admitting failure.
Truth: The bankruptcy laws are federal law and society has long recognized they are in the best interest of society, the business community, and all parties. They allow debtors to get out from under debt they simply cannot pay, and allow creditors to get at least some of what they are owed. Filing for bankruptcy is frequently a wise decision and is not a sign of failure.
Myth: Filing for bankruptcy will affect my credit score forever.
Truth: We can tell you the steps and actions that will quickly rebuild your credit.
Myth: Bankruptcy is the last resort.
Truth: Cashing in retirement accounts, moving debt from one credit card to another, or taking out a second mortgage may not be the best options. Bankruptcy may serve you better.
Schedule Your Free Initial Consultation
Contact our office today to discuss your bankruptcy questions. Salt Lake City, Utah, attorney Justin M. Myers has an accounting background and has practiced bankruptcy law his entire career. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at 888-811-7784 or via e-mail.
