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The purpose of bankruptcy is to give you a fresh start. 

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When should I consider bankruptcy? When debt gets overwhelming, the worst thing you can do is nothing at all. You should seek out a bankruptcy attorney if you are facing a life crisis such as a job loss, illness, unemployment or other hardship that makes paying future bills impossible or unlikely. If your home is in foreclosure or you are behind on your car/house loan payments, you should talk to an attorney about your options. A bankruptcy attorney can educate you on how bankruptcy can stop harassment or annoyance from your creditors, who call your home or place of work on a regular basis. If you are facing a lawsuit or wage garnishment, or even if you are simply having a hard time paying your bills every month, please don’t just wait and see what happens.

Myths about Bankruptcy:

Myth #1 – Filing for Bankruptcy Makes Me a Bad Person

In 2012, 1.1 million consumers filed bankruptcy petitions in the United States. Bankruptcy is a solution to help good people deal with bad times. Difficult life events like losing a job, dealing with a divorce, or facing a catastrophic medical expense can take its toll on your credit. Bankruptcy helps hardworking individuals deal with these difficulties.

Myth #2 – Filing for Bankruptcy Will Ruin My Credit   

Bankruptcy is the worst single thing you can do to your credit in the short-term. However, most people who are in a position to file for bankruptcy already have poor credit, so filing does not make things significantly worse. In fact, filing for bankruptcy discharges old debts, allowing you to rebuild your credit after your bankruptcy is discharged. In the long-term, bankruptcy can help you improve your credit, if you take your fresh start seriously. 

Myth #3 – Everyone Will Know I Filed for Bankruptcy

Bankruptcy is public record, but not one that is readily or frequently accessed by the general public. Newspapers in our area don’t report on individuals filing for bankruptcy, unless you are a celebrity or a prominent official. Most people will never know, unless you tell them.

Myth #4 – I Will Lose Everything I Own

This is simply not true. In our state, you are permitted to protect your assets from the reach of your creditors in a bankruptcy, up to a certain value. This means that, in the vast majority of cases, you can keep all of your personal property despite filing for bankruptcy. There are always important exceptions that should be discussed with an attorney, but in many cases your assets are safer in a bankruptcy then they would be outside of a bankruptcy. 

The Biggest Myth of All – Myth #5 – I Cannot Afford Bankruptcy

People who file for bankruptcy typically can’t afford to spend their spare money on filing fees or attorney’s fees. Frequently, however, the prospect of bankruptcy will allow debtors to redirect their payments to help pay fees. In some cases, attorney’s fees can be paid through the life of the bankruptcy. Simply put, there are options out there to make a bankruptcy feasible, no matter your circumstance or situation. As many firms do, our firm provides flexible pre-bankruptcy payment options to help debtors afford the fees associated with bankruptcy.

Our Consultation Is Free

Coltrane Grubbs & Orenstein bankruptcy attorney Joe Orenstein offers a free initial consultation to anyone interested in more information about bankruptcy. If you are considering bankruptcy, or if you simply want more information about your financial/legal options from an NC bankruptcy attorney, feel free to call (336-996-4166) and set up your consult today.   

Recent Blog Posts about Bankruptcy:

What goes into a Chapter 13 Bankruptcy Plan Payment?

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The Bankruptcy Means Test: What does it Mean?

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Exemptions in North Carolina – How NC Law Protects you from your Creditors

In North Carolina, there are many statutory and common law protections in place that help a debtor keep their wages and property, even in the face of claims by credit card companies or other creditors. North Carolina has stringent restrictions on wage garnishment, about which you can learn here. Even outside of the wage garnishment context, […]


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Chapter 7 vs. Chapter 13 Bankruptcy: Liquidation or Reorganization?

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Coltrane Grubbs & Orenstein is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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