' 5 Surprising Facts About Bankruptcy You’ll Be Surprised to Learn - Law Offices of Robert M. Geller, P.A.

5 Surprising Facts About Bankruptcy You’ll Be Surprised to Learn

facts about bankruptcyThink you know everything there is to know about bankruptcy? Here are five surprising facts about bankruptcy that surprise most people.

Bankruptcy is a big decision with a lot of implications. It’s not something to be taken lightly. If you are considering bankruptcy, it’s important to do your research and understand all that bankruptcy entails.

Here are five things you may be surprised to learn about bankruptcy:

1. Bankruptcy Can Be Good for Your Credit Score

You might think that filing for bankruptcy would ruin your credit score. Surprisingly, it could actually help your credit score over time.

Bankruptcy stays on your credit report for up to 10 years, but that doesn’t mean your credit score will suffer for 10 years. After filing for bankruptcy, you can begin to rebuild your credit score by making timely payments on any debts you still have and by using credit wisely.

2. Not Everyone Who Files for Bankruptcy Has Their Assets Seized

When you file for bankruptcy, the court appoints a trustee who oversees your case. The trustee reviews your assets and determines which assets are exempt from seizure. Exemptions vary from state to state, but they typically include things like your home, your car, and your retirement savings.

3. You Might Not Have to Give Up Your Home or Your Car

Even if the trustee overseeing your case determines that some of your assets are subject to seizure, you might not have to give them up. If you can show that selling those assets would cause undue hardship, the court might allow you to keep them.

4. Bankruptcy Might Not Discharge All of Your Debts

While bankruptcy can give you a fresh start by discharging many of your debts, it won’t get rid of all of them. Some types of debt are not dischargeable in bankruptcy. This includes:

  • Student loans
  • Alimony
  • Child support payments

You will still be responsible for repaying those debts even after you file for bankruptcy.

5. Filing Jointly Can Protect Your Spouse’s Finances

Depending on the type of bankruptcy you file—Chapter 7 or Chapter 13—filing jointly with your spouse might protect their finances from being included in the bankruptcy proceeding.

Chapter 7 bankruptcies are known as liquidation bankruptcies because they involve the sale of some of your assets to pay off your debts. If only one spouse files for Chapter 7 bankruptcy, the court might not consider the other spouse’s income when determining whether the debtor has enough money to pay off their debts.

This varies from family to family, so speak to your bankruptcy attorney about the best way to file if you’re married.

These are just five things you might want to know before deciding whether or not to file. Of course, there is much more to know about bankruptcy and its implications. If you are considering bankruptcy, it’s best to consult with an experienced bankruptcy lawyer who can answer your questions and guide you through the process.

For more facts about bankruptcy or to schedule a consultation to discuss your situation with an experienced debt settlement lawyer, contact the Law Offices of Robert M. Geller at 813-254-5696.


Video Testimonials

Tampa Bankruptcy Law Blog

Can Bankruptcy Stop Foreclosure?

Many people face the distressing prospect of foreclosure on their homes. If you find yourself in this situation, it's crucial...
Read More

How Much Does It Cost to File Bankruptcy in Florida?

Financial challenges can be overwhelming. For many individuals, bankruptcy becomes a viable option for a fresh start. Many clients are...
Read More

How to Get Out of Debt: Exploring Your Options

Debt is a pervasive issue that affects millions of people worldwide. It is hard to escape debt, especially if you...
Read More

How Will Bankruptcy Affect My Child Support Obligations?

Parenting can be tough, and it's even harder when you're facing financial difficulties. Struggling with debt and bankruptcy can cause...
Read More

Student Loans: Is Discharge in Bankruptcy Possible?

Student loans have become a necessary evil for most students to pursue higher education. The cost of education has increased...
Read More

Should I File Bankruptcy for Credit Card Debt?

Credit card debt can be a huge burden on our financial lives. The pressure to make payments, maintain balances, and...
Read More

Can Bankruptcy Stop Wage Garnishment?

Wage garnishment is a legal process in which a creditor can collect a debt by receiving a court order that...
Read More

Bankruptcy Guide: How It Works, Types, and Consequences

Dealing with money problems can be a stressful and overwhelming experience. Sometimes, debt can become unmanageable, and it may feel...
Read More

What to Say to Someone Going through Financial Problems

Financial problems can be one of the most stressful experiences a person can go through. If you know someone who...
Read More

How Do People Get Into Debt?

How do people get into debt? Are you struggling with debt? Do you feel like the weight of your financial...
Read More


For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More


We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation


Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions