When I file for bankruptcy, my property will be taken from me.

  • Arizona offers exemptions for property in the case of a Chapter 7 filing. In Chapter 13, your mortgage and/or car loans are usually covered in the repayment plan arranged.

Creditors will still contact me, even after filing.

  • When you file for any type of bankruptcy, a stay is put on your accounts and creditors must immediately cease contacting you, or face serious fines.

Someone will go through my house and things to evaluate my assets.

  • You have no debt after bankruptcy, so getting credit may be easier than you think. The most important factor to getting credit is demonstrating stability.  For example, regularly paying your household bills on time would speak to your stability

All my debts will be erased when I file for bankruptcy.

  • Your assets will be disclosed during a meeting of the creditors.  Under oath, you will verify your assets. No one will be making a home visit.

After bankruptcy, I will never get credit again!

  • It depends. Certain obligations like child support payments, student loans and criminal or civil penalties will not be affected. Also, you will need to continue to pay on exempt debts you want to maintain, such as a mortgage or car loan.

I will have to present my case in front of a judge.

  • While you are required to attend a meeting of the creditors, a judge does not preside over the meeting.  The meeting is recorded and is led by the bankruptcy trustee appointed to your case. You will be asked some standard questions to verify the details of your filing under oath. Your legal representation will attend the meeting with you.

My employer, friends and family will all know that I filed for bankruptcy.

  • For Chapter 7 bankruptcy, there is an eight-year waiting period between filings. Filing a Chapter 13 bankruptcy will depend upon the type of any previous filings.

If I file, I will never be able to file for bankruptcy again.

  • While bankruptcy is a public proceeding, the sheer amount of cases will likely mean that only major corporations or celebrities who file will get the public’s attention. As for your current or future employers, you are protected from employment discrimination under the bankruptcy code.

I’m not delinquent on all my debts, so filing for bankruptcy isn’t the right choice for me.

  • Not everyone who files for bankruptcy is completely delinquent on their debts. In some cases, a person may be stuck in a cycle of transferring debt from credit card to credit card and wants a solution to break the cycle. Other times, a sudden change in income may facilitate the need to eliminate debt.

I don’t need a lawyer; I just need to file some papers at the courthouse to file bankruptcy.

  • Figuring out which type of bankruptcy you should file and the resulting process can be a daunting task. Having an experienced legal team by your side is recommended to guide you through the process and make sure your interests are best represented.