Over the years many myths have grown. These myths include the following:

1st Myth: “I will lose all my property if I file bankruptcy”.
Fact: Nothing could be further from the truth. Over 95% of those who file a Chapter 7 bankruptcy do not lose any property. During your free consultation Joseph M. Tosti, Attorney at Law, he will explain to you how your assets will be protected.

2nd Myth: “Only a deadbeat would file bankruptcy”
Fact: The vast majority of bankruptcies are filed when the debtor incurs substantial medical bills, loses a job, or goes through divorce. Most debtors would go to any length to avoid bankruptcy, but often times they are unable to because of the high interest rates on their credit cards.

3rd Myth: “If you are married, both spouses must file bankruptcy.”
Fact: A spouse may file separately and the filing of the bankruptcy will not effect the credit of the non-filing spouse. Oftentimes all the debt is the name of only one spouse. This is especially true after marriage where one spouse realizes the other spouse is bringing a huge amount of debt to the marriage.

4th Myth: “You may run up your credit cards prior to the filing of the bankruptcy.”
Fact: Any debts incurred during the anticipation of the bankruptcy may be determined non-dischargeable. Those debts would have to be repaid.

5th Myth: “If I file bankruptcy, I will never get credit again”
Fact: Usually when a person starts to contemplate bankruptcy, that person knows that he or she is unable to continue making payments on their credit cards and other bills. If the person’s credit isn’t already ruined, it will be ruined very shortly. The Chapter 7 bankruptcy will actually improve the person’s credit as the credit bureau reports will reduce all outstanding unsecured debt to $0.00. Typically, the debtors will be able to re-establish their credit within 2-3 years if they have a steady job.