We are open and here to help people in these trying times. Please don’t hesitate to call us if you have any questions!

Committed to Helping Our Clients Get the Fresh Start They Deserve

About Bankruptcy Myths

Orange County Bankruptcy Attorneys

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.

Contact an Orange County bankruptcy attorney from The Law Offices of Joseph M. Tosti, APC if you are seeking an experienced lawyer to assist you in legal debt relief actions. Call (949) 245-6288 to set up your free consultation.

Dedicated to Providing Quality Representation

How We Have Served Our Clients
  • “I think Tosti is a competent attorney who will do what he can to optimize your case and ensure you the proper treatment for your injuries.”

    Alicia H.

  • “I couldn't be happier with my choice for legal representation.”

    Jason B.

  • “He personally called me back to give me the info I needed. I would recommend him to ANYONE! ”

    Candace S.

  • “Mr. Tosti takes care of business, & gets the job done. He doesn't settle until he knows his client has been compensated very well.”

    Ericka P.

  • “Mr Tosti is the best! He is very kind and highly respected.”

    David W.

  • “He's extremely knowledgeable and knows exactly what he's doing. ”

    Nicole L.