Bankruptcy Misconceptions

The word “bankruptcy” scares many people. This is mainly because there are a lot of false rumors about what being in debt really means.

Falsehood #1 You can go to jail for not paying your bills. In reality, there are no debtors’ prisons in this country. You only go to jail if you commit a crime. Owing money is troubling, but not a crime.

Falsehood #2 You can only file bankruptcy only once in your life. Under current law, a person can file a Chapter 7 (fresh start) bankruptcy eight (8) years after a prior filing. There is no limitation on the number of times a person can file.

Falsehood #3 Bankruptcy is expensive. The current filing fee is $306.00 for a Chapter 7. Attorney fees range from about $800.00 to $3,000.00 depending on the complexity of the case.
Falsehood #4 Bankruptcy will harm your spouse’s credit. There is no law that makes a spouse file bankruptcy if you file. If your spouse had good credit prior to your bankruptcy, that credit score should not change.

Falsehood #5 Everyone will know you filed bankruptcy. In Northwest Ohio, only the Toledo Legal News publishes a list of persons who filed bankruptcy. The general public seldom, if ever, reads this publication.

If you are having financial difficulties, call Fredric Boyk at 419-327-6160 to learn the truth about debt relief and bankruptcy.