Here are the Top 15 Myths your creditors want you to believe
...and the reason why every one of them is NOT TRUE. 

(Simply "Click" on the item below that interests you.)

NOT TRUE.

Nothing could be further from the truth. 

Sure you heard it in the press, but it's just not true.  The news media overcooked the whole story.  The truth is, you can do almost everything under the NEW law that you could do under the OLD law.  In some ways, the new law actually increased the benefits of filing bankruptcy.

As it turns out (and you need to hear this), many clients are getting a better break under the NEW law than they would have gotten under the OLD law!

Want proof?  The NEW law made possible our new $99 per month bill consolidation program.  This was not allowed under the OLD law.  It works so well for clients that we have named it our "Debt Buster" plan. Want to learn more about the new "$99/mo Debt Buster"? (Just click here)

Surprised?  So were we, but it's the truth. Find out for yourself.
Just call toll free to 1-800-899-1414 to set up a totally FREE initial consultation.

That NEW bankruptcy law: We Figured It Out.  Want to find out more? (Just Click Here)

Unless you're famous, chances are very good that the only people who will know about a filing are your creditors and the people you slip and tell.

While it's true that your bankruptcy is a matter of public record, the number of filings is so massive, that unless someone is specifically trying to track down information on you, there is almost no likelihood that anyone will even know you filed.

However, you have to make sure you don’t slip and tell someone.  Telling someone that you filed bankruptcy is just good gossip, just like telling someone that you heard so-and-so is getting a divorce or has cancer.  So, if you don't want everyone you know to know you filed bankruptcy, you need to keep the information to yourself.  

As for newspapers, my experience is that most papers don't include information about who filed bankruptcy, and even if they did, think about it...who would be interested enough to read that stuff?

Most of our clients don't lose anything.

While laws vary from state to state, every state has exemptions that protect certain kinds of property. Using North Carolina as an example, there are exemptions to protect such things as your house, your car, your truck, household goods and furnishings, IRAs, retirement plans, the cash value in life insurance, wages, and personal injury claims. There is even a "wildcard" exemption of $5,000 per person that can be applied wherever you want it.  In those rarer situations where you have more property than can be protected by available exemptions, there is Chapter 13. In Chapter 13, you can even keep this property by paying a higher Chapter 13 plan payment.

At the same time, filing bankruptcy does not generally wipe out or get rid of mortgages or liens against your property.  Therefore, if you want to keep a car, truck, home or business equipment that serves as collateral for a loan, you need to keep paying on the debt.  If you make these payments and have exemptions to cover any value above what is owed, you can rest assured you will be able to keep these items.

This is completely false.  A surprising number of people believe this to be true.  But, not true. The truth is, however, that, in the future, you can buy, own, control and possess whatever you can afford.  If you have or can come up with the money, there are no laws prohibiting you from buying homes, cars, trucks, equipment, household goods, etc., once you get what is called your ‘discharge in bankruptcy’.

Actually, quite the opposite is true.  You are more likely to get credit after you file, than if you don’t file.

Filing bankruptcy gets rid of debt.  Getting rid of debt puts you in a position to handle more credit.  This makes you look more attractive to banks, credit card companies and other lenders.  

In my experience, unfortunately, it won't be long before you're getting credit card offers again.  I say "unfortunately" because I don't want you to get right back in debt again.

At first, the banks, credit card companies and other lenders will want more money down and will want to charge you higher interest rates.  However, if you are careful, keep your job, start saving money, pay your bills, and do things that put good marks on your credit report, the quality of your credit will get better and better over time.  Generally, if a client has not re-established good credit in 2 to 4 years, sufficient to even buy or refinance a house, it's not because they filed bankruptcy.  It generally means that something else has happened after the bankruptcy to hurt their credit.

The truth is that we have had lots of clients buy cars and trucks almost immediately after they finished with their bankruptcy.  A few clients have even managed to buy a car or truck while they were still in bankruptcy.

Quite the contrary. Filing bankruptcy means you’re a good person, acting responsibly.

Everyone wants to pay their bills.  Everyone.  And everyone wants to take care of their family and provide their family with all the things they need.  But, if you can’t do both?  Which is more important?  Your family, of course.

Filing bankruptcy gets rid of certain debts.  Getting rid of certain debts frees up money to better take care of your family.  Freeing up money to better take care of your family lets you put thing back in their proper order: Family first.  Putting your family first is good and honorable and noble and doing so means you’re a good person.

There are good reasons why over 750,000 families file bankruptcy every year, and it's not because they’re bad people.  Lots of good, honest, hard-working people fall on hard times.  Job losses, medical difficulties, family emergencies, bad decisions, failed businesses, etc., are just a fact of life.  Let's face it, life can be brutal, and sometimes the money's just not there.  The bankruptcy laws were created with this in mind, to make sure that…if you need it…you and your family have a way to escape from the crushing burden of debt, to make sure that your family does come first, and so that you and your family can have a second chance at a "fresh start".

You are getting 2 completely different concepts confused with each other. You are getting the fact that bankruptcy is reported on your credit report for up to 10 years mixed up with the effect that reporting will have on your credit.  Just because something is reported on your credit report does NOT necessarily mean it will have a negative effect on your credit standing.

First, let's get one thing out in the open.  By the time you need to make an appointment to see a bankruptcy attorney, your credit is already messed up or maxed out…or both…or at least strongly headed in that direction.  Think about it.  If your credit is already messed up or maxed out, you…more than likely…have no credit for bankruptcy to hurt.

Furthermore, as I’ve previously mentioned, in my experience if you have not re-established good credit in 2 to 4 years after you file bankruptcy, it most likely has nothing to do with the fact that you filed bankruptcy.  And it certainly has absolutely nothing to do with the fact that your credit history still shows an old bankruptcy filing.

NOT TRUE.

Not true at all.

In many cases, where husband and wife both have a lot of debt, it makes sense and saves money for them to both file, but it is never a ‘requirement’ under the law. However, in many situations, there is no good reason at all for the second spouse to file.  In these situations, we just file the spouse who needs the help, and leave the other spouse completely out of it.

With some lawyers, yes.  But not in the hands of an experienced bankruptcy attorney.  

With our help, filing bankruptcy is easy.  The decision to file may be hard, but once the decision is made, filing is easy.

John Orcutt here.  I have been practicing bankruptcy law for over 21 years, and with the help of 4 other experienced attorneys, we have helped well over 20,000 families get the relief those families needed. 

When you want bankruptcy done right, you go to an experienced attorney.  We have that experience.  We are the largest debtor bankruptcy firm in North Carolina, and not by accident.  We pride ourselves in providing good, quality services at reasonable cost, and as a result, we enjoy a steady stream of referrals from satisfied customers.

Good people, who realize that they have a duty and responsibility to put their families first, file bankruptcy. 

Most of the people who file bankruptcy are good, honest, hard-working people, just like you and me, who file as a last resort after months or years of struggling to pay the bills.  You’re completely wrong in thinking that you’re a deadbeat if you file bankruptcy.  If you need to file, filing bankruptcy is actually one of the most positive, responsible, honorable and noble steps you can take on behalf of your family and your family’s future, happiness and prosperity.

It’s not your fault that you were saddled with overwhelming debt, or you got behind on something as valuable as your house or car, after some life-changing experience, such as a divorce, the loss of a job, a failed business venture, a serious illness, or some family emergency, or because you honestly and mistakenly fell into debt at a young age before you knew better, before you knew anything about budgeting or how to manage money.

Deadbeats are the people who continue to let themselves get crushed by debt year after year, who continue to let creditors use and abuse them, who continue to pay out good, hard-earned money to creditors at the expense of their families, and who continue to just sit back and take it, when there is something they can do about it.

Nothing could be further from the truth.  

The minute you file bankruptcy, the Bankruptcy Court issues an order telling all of your creditors to leave you alone, or else.

This order has a name.  It is called the "automatic stay", and it is issued pursuant to United States Code 11, Section 362.  The automatic stay prohibits you from any and all collections actions.  After you file bankruptcy, the creditor is not even allowed to talk to you.  In addition, the creditor must stop any collection attempts already started.  The automatic stay is very powerful, and puts the full weight of the United States Courts to work for you, to make sure your creditors leave you alone.

Even better, if a creditor violates the automatic stay, you have the right to bring the creditor before the court for Contempt of Court, and to be compensated accordingly. Believe me, Bankruptcy Court Judges do not take kindly to creditors who ignore the automatic stay, and these Judges have been known to punish creditors severely.  Very simply, once you file for bankruptcy, creditors must leave you alone or suffer the consequences. 

My, how the tables turn, once you reach out for the help that only filing bankruptcy can provide!  No more phone calls.  No more collection letters.  No more lawsuits.  No repossessions.  No foreclosures.  No more threats.  Nothing.  It’s the law. 

Can’t you just feel the relief?

The opposite it usually true.

Filing bankruptcy is not the problem. The problem is not being able to pay your bills and not being able to provide for your family. This is what causes the stress and anxiety to build and build.  

All good, honest, hard-working people feel a strong need to pay their bills, and not being able to do so causes them to feel tremendous stress.  Unless you do something to relieve this stress, it can quickly build to the breaking point…divorce.

Bankruptcy is designed to get you out from under the burden of debt, to protect your property, to lower your stress level and to let you…once again…sleep at night.  If your experience is like that of other couples, you will find that filing bankruptcy (and lowering the stress level) can be a crucial first step in bringing the love and caring…not to mention hope…back into your relationship.

We get rid of back taxes for our clients all the time.  

By “taxes”, we mean ‘income’ taxes, and by “old", we mean income taxes more than 3 years old.  Under the law, there are 4 or 5 qualifications that have to be met, but once these are met…in bankruptcy…those taxes are gone.  

Note: Filing bankruptcy does not get rid of ‘withholding’ or ‘sales’ taxes, no matter how old they are.

The truth is, you can file and get a “discharge” under Chapter 7 once every 8 years. As for filing a Chapter 7 after filing and getting a discharge in Chapter 13, the wait is 6 years, computed from one “date of filing” to another.

As for filing a case under Chapter 13 of the Bankruptcy Code, the wait is only 4 years after a prior discharged Chapter 7, or 2 years after a prior discharged Chapter 13 case.

If a prior bankruptcy case was “dismissed” as opposed to “discharged”, there is no required wait time between bankruptcy flings, barring a rare court order to the contrary.

Hopefully, however, filing one bankruptcy will be enough to get your life back.

I'm sorry...but you can't. Doing so would be against the law. Under the law...when you file bankruptcy...you have to list all your property and all your debts. Most people want to leave out a debt because it is their intent to keep paying on it. The good news....on this score....is that you can achieve the same goal, even though you have to list the debt. If you want to keep paying on a debt...after bankruptcy....you can. After bankruptcy....you can go back and pay anybody you want. In fact...after you file bankruptcy....there are some debts you have to keep paying on. For instance....if you have a car, truck or house loan....even though you list the debt in your bankruptcy....if you want to keep the car, truck or house....you have to keep paying on the debt. More importantly....you need to know this. As long as you stay current on the loan...and keep the property properly insured....you are protected under the law .... and you get to keep the property....because...under the law...the creditor is stuck with you and can't do anything about it.

What if everything you’ve ever been told about bankruptcy is a wrong?

What if everything you have come to believe about bankruptcy is wrong?

Would you want to know? 

What if filing bankruptcy is the absolute best thing in the world for you, your family, your future happiness and your future prosperity? 

Wouldn’t you want to know? 

It's no secret that our U.S. economy is in serious trouble.

What if filing bankruptcy is the only thing that is going to save you and your family when the economic "storm" hits, and hits hard?

Wouldn’t it be a shame if you didn’t find out the truth; and because you didn’t find out the truth, you never filed bankruptcy, and because you never filed bankruptcy, your family had to suffer for it…year in…year out?

All of us…every single one of us…make decisions, all day, every day, based on what we believe.  Think about it. Every decision we make…from the moment we get up, to the moment we lie back down…to do this, to not do that, to go here, to not go there, to like this, to not like that, etc., etc., is based on what we believe to be true about the world around us and how it works.  

What if the beliefs upon which we base our decisions are not true? 

The answer is: We will make a lot of costly and harmful decisions.

The problem is that when we really believe in something, for us, it not just a belief. We think it’s the truth. It’s the truth. And, based on what we believe to be true, we make all our life decisions, big or small, today, tomorrow, the next day, and forever.   

For us, what we believe to be true is what life is all about.  What we believe to be true is how we understand life and the world around us.  It’s what our life is based on; and, it follows, our beliefs serve as the foundation for all our decisions.  It’s just the way it is. 

If we ‘believe’ that some-thing or some-action is bad or wrong or will be harmful, we do our best to avoid it.  If we ‘believe’ some thing or some action is good or right or helpful, we will be drawn to it and choose it.   That’s just the way life is for us as human beings.  We make choices based on what we believe. 

For example, if we believe a type of food is good for us, likely you will eat it.  If we believe a type of food is bad for us, that eating it will give us cancer, for example, we will either not eat it or at least feel bad about eating it.   

We engage in the thinking process all the time, on all levels, all day long.  It’s like we are on automatic. We choose what to do, how to act, what to eat, who to hang out with, where to go, what our goals are, etc., etc., based on what we believe to be true. 

The problem comes when…as it turns out…some thing we believe to be TRUE turns out to be NOT TRUE. 

And that’s where myths come in.   

A myth nothing more than a belief that is NOT TRUE.    

Myths are a terrible thing.  Myths are terrible because of the harm they cause. Myths cause harm because they give us wrong information about how things in life really work and what those things really mean.  This bad information about life forces us to make bad decisions.  Bad decisions leave us with bad results.  Bad results lock us into bad situations.  Being stuck in bad situations steals the goodness out of life. 

The result: A bad outcome, a crappy life, a loss of happiness and future prosperity…all based on a beliefs that weren’t true in the first place.

The really, really, horrible thing about myths is how powerful they are.   

Remember, we all make decisions based upon what we believe and when we believe in something, we ‘know’ it to be true, whether it is or not, and once we ‘know’ something to be true, we don’t question it at all.  We believe it is true, and that’s it.   

That’s the problem with myths.  By definition, they are NOT true...they are lies...but because we think they are true, we act on them, and make decisions based on them, without question.  As a result, good people make bad life decisions, and suffer the consequences.  How horrible! 

Making sure you have the TRUTH is what the following information is all about. 

It just makes me sick to see good, hard-working people make bad life decisions based on false information.  It makes me even sicker to hear about creditors who feed off these myths to keep good, honest, hard-working people, just like you, locked in debt and the pain and pressure that comes with it, stealing from you and your family the future happiness and prosperity you would surely have and rightly deserve. 

I’m tired of seeing creditors using myths about bankruptcy to take advantage of people.  Somebody has to stop it, and that somebody is me. 

The first step is to bust through to the truth behind the myths. 

Busting through to the truth behind the myths takes away the power of the myth as one of your guiding beliefs.  Then, with the truth in hand, you can make better decision.  Better decisions makes for better results.  Better results makes for a better life. 

Maybe filing bankruptcy is right for you. Maybe not.   

But, you will never know if you just keep on falling prey to the garbage information you have always been told about bankruptcy, if you keep falling prey to the many myths about bankruptcy.  

Myths about bankruptcy keep you locked in debt.                

Myths about bankruptcy are your creditor’s best friend. As long as you go on believing all the crap you have heard about bankruptcy and how bad it supposedly is, your creditors know they can continue, with no fear, to pound away at you. 

Your creditors know that if you believe these myths, you won’t even consider filing bankruptcy. If you won’t even consider bankruptcy, you won’t ever make an appointment to find out how bankruptcy really works and how much good it can do for your family, how it can get you out of debt and unlock your future, how it can put creditors under control, how it can protect you car, home and other property, and how it can give you and your family the “fresh start” and “second chance” you deserve. 

The truth is that…if you can’t pay all your bills or if you can’t get your creditors under control…and you don’t file bankruptcy, you’re probably ...for lack of a better term...screwed…whether you realize it or not.  You can’t spend money you don’t have.  

The truth is that…if you can’t pay all your bills and you can’t get your creditors under control, filing bankruptcy may be…quite literally…the answer to your prayers. 

That’s right…no exaggeration…the answer to your prayers.   

Your creditors do NOT want you to read this.   

Your creditors know they are better off if they keep you in the dark.  If your creditors can keep you in the dark...if they can keep you believing the lies...they can keep you and your family chained in debt.  If they can keep you ‘believing’ that you have no choice, that filing bankruptcy is not a solution and that bankruptcy is ‘bad’ or ‘evil’ or ‘dishonest’, that filing bankruptcy won’t really help or that you will still owe the debts afterward, then they can keep you paying, paying, paying…month in, month out...year in, year out...for the rest of your life.   

You deserve better, but it all starts with finding out the truth about bankruptcy. 

The bottom line is this: You know all those bad things you've always heard about bankruptcy?  Most of it is simply NOT TRUE.       Back To Top

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The Law Offices of John T. Orcutt 
......because if you need to file bankruptcy 
......you want John Orcutt.

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