Common Misconceptions

Houston County bankruptcy lawyers advising you on complicated bankruptcy laws in Dothan, Ozark, Troy, and all of Alabama

There is no requirement that a person be completely broke and near-homeless in order to file for bankruptcy protection. In fact, many people who qualify for bankruptcy have a current steady income.  The only “requirement” is that a person or organization is unable to pay bills as they become due. This minimal requirement comes as a surprise to many. A “debtor” is an individual or entity that owes money when it cannot pay.  Moreover, not all who file for bankruptcy are financially irresponsible. There are many reasons people find themselves unable to pay a debt that have nothing to do with financial irresponsibility. Unexpected hardships, such as job loss, serious illness, or divorce leave many hardworking, responsible people across the nation in a precarious financial state every day.

Bankruptcy does not permanently ruin a person’s credit; an individual who has filed for bankruptcy can qualify for credit or purchase a home in the future.. Although bankruptcy stays on a person’s credit report for a significant period of time, this is not a permanent condition. While creditors and mortgage lenders may require more security from an individual who has a bankruptcy filing on their record, the mere fact of bankruptcy does not prevent an individual from obtaining a line of credit or a home mortgage in the future.

However, bankruptcy proceedings do not discharge every debt.  There are certain types of non-dischargeable debts that will survive a bankruptcy, including student loans, alimony, and child support. Although these “sticky” obligations cannot be discharged in a liquidation bankruptcy, they can still be paid over time in accordance with a Chapter 13 plan.

Most likely, you know less than you think about the bankruptcy process. Our expert team of Dothan Bankruptcy attorneys would love to clear up any misconceptions you might have, as well as guide you through the often confusing process of determining the appropriate debt relief solution for you.  Call Boles Holmes White today at 334-366-6086 or email us for your consultation.


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