Busting 4 Common Debt Relief & Bankruptcy Myths

As Brevard County bankruptcy lawyers, we frequently hear a wide variety of myths about debt relief. In this blog, we expose the truth behind some of the most widespread myths – to learn more about how any of these issues will affect you, contact our firm today.

Our experienced team can guide you to debt relief. Call (321) 320-6088 today to learn more.

Myth #1: Debt Management Companies Can Stop Creditor Calls

There are two surefire ways to stop harassing calls and communications from creditors – hire an attorney, or file for bankruptcy. Despite what many debt management, settlement, and relief companies may tell you, they do NOT have the power to stop these communications. Although there are extensive laws which govern the tactics collection agencies are allowed to use, they still have a right to pursue payment – unless you have hired an attorney or filed for bankruptcy.

Myth #2: Debt Settlement Is Always Better Than Bankruptcy

Compromising with your creditors through debt negotiation is a powerful option for many who aren’t a good fit for bankruptcy. Be very wary, however, of the countless debt relief companies popping up around the nation. Some of these agencies can be very helpful, but it’s safe to say that most are more interested in taking your money than saving you from debt. Choose the wrong agency, and you could be left with tax consequences, lawsuits, and more debt than you started with.

Myth #3: You Will Lose Your Home in Bankruptcy

Unless your home is on a particularly large plot of land (1/2 acre within a municipality, up to 160 acres in a rural area) you will not lose your home in bankruptcy. Florida has a particularly powerful homestead exemption, which prevents a forced sale of your home to pay off creditors. Unlike other states, there is no limit to the value of an exempted home, meaning even million-dollar estates can be protected.

Myth #4: You Don’t Need An Attorney For Bankruptcy

This one isn’t completely a myth – it’s possible to file bankruptcy on your own, in the same way that it’s possible to perform surgery on yourself. The results will most likely be far worse than if you had trusted a professional.

While bankruptcy is a great option for many who are struggling with debt, it is a process that you don’t want to have to go through again. Retain an experienced Brevard County bankruptcy attorney, and you can trust that you will be on the path to true debt relief.

Take control of your financial future. Get started with a free initial case evaluation.

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