Arizona Bankruptcy Myths

There are numerous misconceptions about filing bankruptcy Arizona.  If you are wanting to declare bankruptcy there are things to be aware.  Some of these things aren’t true, even though people talk about them all the time. These are known as Bankruptcy Myths.  These misconceptions can deter people from taking advantage of the opportunities that filing bankruptcy has to offer. 

Bankruptcy myth versus realityThe 2 most popular types of bankruptcy are  Chapter 7 and Chapter 13 bankruptcy Neither is pleasant or simple to file. Without using Arizona bankruptcy attorneys it can be easy to get tangled up in the hoops you have to jump through for this debt relief option. There are, unfortunately, many bankruptcy myths regarding the subject of bankruptcy that can prevent or in some cases disastrously delay individuals of their legal right to file for bankruptcy protection. To make the bankruptcy process a little easier to understand, here are some of the most popular bankruptcy myths, dispelled.

Top Bankruptcy Myths from Arizona Bankruptcy Attorneys Include:

  • You only get one chance at bankruptcy, you can only file for bankruptcy once in your life. A person can file for Chapter 7 bankruptcy once every eight years, and even more frequently for Chapter 13 bankruptcy.  Contact a Mesa bankruptcy lawyer to see which chapter of bankruptcy is the best fit for you.


  • You’ll lose everything when you file for bankruptcy protectionYou may have been told that filing for bankruptcy means giving up your house, car possessions  and any other assets you may have. The truth is: you’re likely to keep a lot of your possessions in a bankruptcy filing.The vast majority of Chapter 7 bankruptcy cases are no-asset cases, meaning the debtor gives up no possessions. There are two reasons for this. First, you can carve out some basic assets, called exemptions, that are necessary for day-to-day life. What you can exempt varies from state to state, so be sure to discuss exemptions with your bankruptcy lawyer. And for your possessions that aren’t covered under exemptions? Well, the creditors likely don’t want them.
  • Any type of debt can be discharged in a bankruptcy. Child support, alimony, educational loans and certain types of taxes cannot be discharged in Chapter 7 bankruptcy.


  • If you file for bankruptcy you are somehow stealing and breaking the law.  You could go to jail!   This is just NOT TRUE.  Over one million people choose to file for bankruptcy every year, whether through Chapter 7 bankruptcy or Chapter 13 bankruptcy.  The people filing for bankruptcy are good people, just like you, who are in difficult financial situations.While there is always a bad seed in every group, the majority of bankruptcy filers are in desperate need of Mesa debt relief and turn to the assistance of Mesa bankruptcy lawyers and use the advantages of bankruptcy to assist them through their difficult time. Whether you lost your job and can’t pay your credit cards, recently got divorced, or became ill or injured and incurred significant medical bills, you are not a bad person for choosing bankruptcy relief.


  • You will never have credit or be able to buy a car or home if you file for bankruptcy protection in Mesa, AZ.  After your bankruptcy case has concluded, you can immediately begin rebuilding your credit. Our Mesa bankruptcy lawyers will be happy to help.

Don't fall for bankruptcy myths. Know the reality of your debt.

  • A married couple in Mesa must file a joint bankruptcy petition if they fie bankruptcy. Spouses can for bankruptcy together or one spouse can file for bankruptcy on their own. Spouses DO NOT have to file a joint bankruptcy.  That spouses have to file together is another example of Arizona bankruptcy myths.


  • Filing for bankruptcy is a personal failing.It is a common belief  that bankruptcy is an admission of failure or a character flaw.  Filing for bankruptcy is a financial reset rather than a financial remedy.  Thousands of people every year file for bankruptcy protection in Arizona.Given that roughly 57% of bankruptcies in 2009 were a result of medical bills and that over the past decade the cost of medical deductibles has grown seven times faster than wages have risen, many bankruptcies are likely the result of stagnant wages rather than poor choices and financial management on your part.Whatever your reason for pursuing this form of debt relief, think of bankruptcy as a tool that can help you take control of your finances.  Bankruptcy can give you and your family a “Fresh Start”.  Don’t feel that you are a personal failure, this is a government program built to assist you when you are down on your luck.  Take advantage of the situation.


  • If you file bankruptcy in Mesa, all of your assets will be sold in a Chapter 7 bankruptcy. Many assets are exempt from liquidation such as Social Security, pensions, workers’ compensation and even your home or vehicle depending on its value.


  • Paying off your debts is a better optionFiling for bankruptcy is one of the most serious financial decisions you can make, but that doesn’t mean it’s a bad idea. In fact, filing for bankruptcy may be the best option for you.If you’re struggling with making ends meet or if your debts are more than 50% of your annual income; you see no way to pay them off within five years, filling bankruptcy in Arizona is likely your best path toward living debt-free.  Call our Arizona Bankruptcy Attorneys now for a free consultation and stay clear of Arizona bankruptcy myths.


  • Creditors can still harass you after you file for bankruptcy. Once your petition has been received by the court, an automatic stay will be issued that will put an immediate stop to any and all creditor harassment.  Though your creditors still could harass you, they are now breaking the law by contacting you. 


  • No matter what, Taxes can not be discharged if you file for bankruptcy protection. Taxes can be discharged in both a Chapter 7 and Chapter 13 bankruptcy if the taxes meet certain criteria.

Myths Regarding Bankruptcy

Don’t Let What “They” Say Confuse You!

If you are facing a “fact” about bankruptcy but aren’t sure if it is the truth.  Do not hesitate to contact an experienced Arizona bankruptcy attorney to find out what is fact and what is nothing more than one of any Arizona bankruptcy myths.  A lot of incorrect information is floating around out there and “they” (Your Friends and Associates or People on the Internet) may be telling you false information.  Misconceptions about bankruptcy can lead to costly mistakes and severe consequences if they are used wrong.  Don’t fall victim to an Arizona bankruptcy myths.

As we cannot dispel all of these misconceptions in one page, please set up a free, no obligation, consultation with one of our Arizona bankruptcy lawyers. Our Arizona bankruptcy attorneys will give you the true facts about bankruptcy and dispel many of the false beliefs that you may have heard. 

Know the facts when considering the option of filing for bankruptcy in Arizona.  Arizona bankruptcy myths can lead you down a bad path.