Cleveland, OH Bankruptcy Myths

The attorneys at Blomgren & Bobka in Cleveland, OH help their clients get past rumors to the truth about bankruptcy. One of the most valuable things we do every day is provide reliable information to people under great financial stress. Our experienced lawyers provide a free face-to-face meeting to discuss your concerns.

Laws Changed in 2005, But They Do Not Prevent Most People From Filing

• Many common myths people believe today involve changes to the bankruptcy code that went into effect late in 2005. Beliefs that helped produce a record "rush" of filings in 2004-2005 included:

• Filing consumer bankruptcy will become very difficult, if not impossible, for people in all but the most desperate circumstances.

• A means test will prevent most people from filing Chapter 7 bankruptcy and receiving a full discharge of debts, pushing most into Chapter 13 - which involves a repayment plan.

In reality, the impact has been minimal when it comes to most people's ability to file bankruptcy. There are some additional requirements, such as a means test and credit counseling, but if you could have filed Chapter 7 bankruptcy before the 2005 changes, it is extremely likely you can file now. We are adept at deducting expenses and working within the law to find the best path for our clients. Other common bankruptcy myths include:

• I will lose everything if I file bankruptcy. In fact, there are many ways to protect critical assets - including your home, car, and household goods - and you do not have to give up qualified retirement accounts.

• A filer's credit is permanently ruined. While filing bankruptcy does affect your credit rating, in some cases it will actually improve the score.

• All debts must be included, even if I want to repay certain ones. We can discuss reaffirmation agreements that allow you to pay specific debts, and nothing in the bankruptcy code prevents you from paying creditors once your situation improves.

Our caring attorneys have the knowledge and experience to address all your bankruptcy concerns, and we encourage your questions.

Contact Blomgren & Bobka at 216-622-1234 to learn more about Cleveland, OH bankruptcy law options.  Call for a Free Consultation. 

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.