A Lawyer Explains the Myths and Truths About Chapter 7

Filing bankruptcy is complicated and confusing to most people, especially when there are several myths about the process. Myth: You can decide which debts to list in your bankruptcy filing. Truth: You must list all debts, even those owed to family and friends. Myth: It’s a good idea to max out your credit cards before filing. Truth: Charging purchases for which you do not intend to pay is illegal. This can be grounds for a denial of your discharge. Myth: Bankruptcy can only be filed once. Truth: Chapter 7 bankruptcy can actually be filed every eight years. Myth: Your employer can fire you because you filed bankruptcy. Truth: In most cases, federal law prohibits employers from discriminating against employees who file bankruptcy. Myth: Your bank account will be closed if you file for bankruptcy. Truth: Accounts are only closed by banks and credit unions if you owe them money at the time of filing. Myth: If you are married, you must file with your spouse. Truth: Spouses are not required to file together and the decision to do so depends on each set of circumstances. Myth: If you’ve been sued, it’s too late to file bankruptcy. Truth: Filing will put a stop to a foreclosure, lawsuit, sheriff sale, and wage attachment. Myth: Everyone will know you filed. Truth: Very few local newspapers print the names of community members who filed for bankruptcy. Generally, the only people who know are your lawyer, creditors, and any friends or family members you choose to tell. If you are having financial difficulties, please contact us. As Chapter 7 lawyers in Tampa, we can determine if filing is right for you.