Bankruptcy Myths Archives - Page 2 of 2 - Rubin & Associates

How do you know if you need to file for bankruptcy?

Financial stress can be overwhelming, especially when debts start to mount and you feel like you’re struggling just to stay afloat. Many people wonder if bankruptcy might be the solution, but deciding whether or not to file for bankruptcy can be complex. It is a big decision with lasting effects, and understanding when it might be appropriate to consider bankruptcy is essential. You should always talk with an experience bankruptcy attorney – they’ll help you understand your financial picture and assist you in choosing the right path forward. you should also watch for these common signs:

You are struggling to make minimum payments on debts

One of the first indicators that bankruptcy might be worth considering is when you are unable to make the minimum payments on your credit cards, loans, or other debts. Minimum payments are usually designed to keep you in good standing with creditors, but if even these are a challenge, it could mean your debt has grown unmanageable. While this situation does not automatically mean bankruptcy is the answer, it’s often a red flag that financial assistance may be needed. (more…)

By Mark Rubin|2025-10-01T15:55:56-05:00October 30th, 2024|Bankruptcy, Bankruptcy Myths, Debt, Financial|

What is the difference between bankruptcy and debt relief?

If you are facing overwhelming debt, you likely feel like you have limited options – and you are not sure whether bankruptcy or debt relief companies are the right solution. While both paths appear to aim to help manage or eliminate debt, they are vastly different in terms of effectiveness, legal protection, and long-term outcomes. Bankruptcy is a legal process governed by federal law, providing significant protections for individuals, while debt relief companies often operate in a much more informal and less regulated environment. It is important to understand the key differences between bankruptcy and debt relief companies, so today’s post will walk you through each site and explain how they are different. (more…)

By Mark Rubin|2025-10-01T15:56:27-05:00October 16th, 2024|Bankruptcy, Bankruptcy Myths, Debt, Texas Bankruptcy, Videos|

Can you keep your property in a Chapter 7 bankruptcy?

Filing for bankruptcy can be a stressful and emotional experience, especially when it comes to wondering whether you will be able to keep your property and belongings. “Can I keep my stuff in a Chapter 7 bankruptcy?” is one of the most common questions when considering a bankruptcy proceeding. To understand the answer, it is important to understand the difference between exempt and non-exempt property under Texas bankruptcy law.

Understanding exempt and non-exempt property in Texas

When you file for Chapter 7 bankruptcy, a trustee is appointed to your case to liquidate your non-exempt assets to pay off your creditors. However, you do not have to lose everything – and often, you will not lose anything. Texas, like every other state, allows debtors to protect certain types of property using bankruptcy exemptions. The key is understanding what property is classified as “exempt” and what is “non-exempt.” (more…)

By Mark Rubin|2025-10-01T15:58:51-05:00September 13th, 2024|Bankruptcy, Bankruptcy Myths, Debt, Foreclosure in Texas, Repossession, Texas Bankruptcy, Videos|

Your Credit Score: What the Number Really Means (and What It Doesn’t)

Everyone knows that their credit score is important – but most Americans don’t understand how the scores are assessed or affected by their actions. Ideally, you want a credit score in the 700-800 range, but what does that really mean – and how do you get there?

Your credit score is calculated by one of the credit reporting agencies – EquiFax, Experian, and TransUnion. These agencies assign your credit score based on current and historical factors, and the score is an assessment of how likely it is that you’ll repay any debts that you accrue. The majority of the score is related to your past payment history and your current level of debt.

Lenders use your credit score to determine how risky it would be to lend you money. With higher credit scores, your loan terms and interest rates will be much better. If you have a lower score, you’ll be assigned a higher interest rate, since the risk is greater for the lender. If your score is low enough, you may not even be approved for the loan or credit card. (more…)

By Mark Rubin|2023-06-01T09:51:08-05:00May 25th, 2023|Bankruptcy, Bankruptcy Myths, Financial, Personal Finance|

Busting 3 Bankruptcy Myths

One of the most frustrating things about bankruptcy is that it is so misunderstood. You do not really care much about it until you are in a dire situation and need it – and then there is so much myth and misinformation, it becomes an incredibly daunting task to decide how you will proceed.

So today, we’re here to bust a few of the most common, enduring myths about bankruptcy. As always, if you are in a situation where you do not think there is any other option, please call us at 214-760-7777 – we are happy to walk you through all of your options.

Myth #1: After bankruptcy, you will have no credit for 7 to 10 years

There is no truth to the bankruptcy myth that you have to suffer through seven years with bad credit after filing bankruptcy. Bankruptcy does show on your credit report for 10 years, but even so, you can regain good credit in as little as two to three years. Our clients often have purchased cars and even qualified for mortgages only two to three years after bankruptcy. (more…)

By Mark Rubin|2025-02-28T13:21:58-06:00August 24th, 2021|Bankruptcy Myths|

The Truth About 5 Bankruptcy Myths
The Truth About 5 Bankruptcy Myths

Bankruptcy, Bankruptcy Myths

The Truth About 5 Bankruptcy Myths

Most Americans don’t know much about bankruptcy – they’re limited to the knowledge they get from news stories and online gossip columns. Bankruptcy is much more common that most people realize, with over a million people filing for bankruptcy every year.

Generally, people assume that bankruptcy is meant for someone who can’t control their credit card spending. In reality, bankruptcy provides financial protection for much more than just credit card debt.

To help shed some light on bankruptcy and how it can help honest, hard working families, we’re sharing the truth about the five most common bankruptcy myths. As always, if you have any other questions, please call us for a free debt consultation – we’ll take as much time as you need to fully explain how bankruptcy works. (more…)

By Mark Rubin|2019-12-26T10:15:29-06:00December 26th, 2019|Bankruptcy, Bankruptcy Myths|

The Top 16 Myths About Bankruptcy

So – all those awful things you’ve always heard about bankruptcy… Did you know that almost all of it is completely untrue? Some of it is rumor, some of it is urban myth, and a lot of the stories are perpetuate by creditors who want you to be scared of bankruptcy.

Check out these top 16 myths about bankruptcy. Since it’s a long post, we’ve listed the myths and linked each one to its explanation.

Myth 1: Under the new bankruptcy law, there is no more help
Myth 2: Everyone will know you have filed for bankruptcy
Myth 3: You will lose everything you have
Myth 4: You will never be able to own anything again
Myth 5: You will never get credit again
Myth 6: Filing bankruptcy will hurt your credit for 10 years
Myth 7: If you’re married… both you and your spouse have to file for bankruptcy
Myth 8: It’s really hard to file for bankruptcy
Myth 9: Only deadbeats file for bankruptcy
Myth 10: Filing bankruptcy means you’re a bad person
Myth 11: Filing for bankruptcy will hurt your credit
Myth 12: Even if you file for bankruptcy, creditors will still harass you and your family
Myth 13: If you file for bankruptcy, it may cause more family troubles and may even lead to divorce
Myth 14: You can’t get rid of back taxes through bankruptcy
Myth 15: You can only file once for bankruptcy protection
Myth 16: You can pick and choose which debts and property to list in your bankruptcy

(more…)

By Mark Rubin|2013-08-20T10:00:23-05:00August 20th, 2013|Bankruptcy, Bankruptcy Myths|

Fact or Fiction? If I file for bankruptcy in Texas, everyone will know.
Fact or Fiction? If I file for bankruptcy in Texas, everyone will know.

Bankruptcy, Bankruptcy Myths, Bankruptcy Statistics, Texas Bankruptcy

Fact or Fiction? If I file for bankruptcy in Texas, everyone will know.

Many people won’t even consider filing for bankruptcy because they fear that everyone they know will find out. It’s a valid concern, too. No one wants the whole world to know his or her private affairs.

That’s where we have good news. If you file for bankruptcy in Texas, the whole world won’t automatically know. (more…)

By Mark Rubin|2012-03-14T12:34:27-05:00March 14th, 2012|Bankruptcy, Bankruptcy Myths, Bankruptcy Statistics, Texas Bankruptcy|

Busting the Myth That Bankruptcy Will Hurt Your Credit for 10 Years
Busting the Myth That Bankruptcy Will Hurt Your Credit for 10 Years

Bankruptcy, Bankruptcy Myths

Busting the Myth That Bankruptcy Will Hurt Your Credit for 10 Years

If you’re considering filing for bankruptcy, you might want to know if what you hear is true: “I understand that filing for bankruptcy will hurt my credit for 10 years. Is it true?” For those with bad credit, the short answer is no.

“How can that be?” you might ask.

If you’re considering filing for bankruptcy or have sought out the advice of a bankruptcy attorney, your credit is most likely already down the drain. You’re in debt up to your ears and have several black marks on your credit report. If this is the case, then there’s no credit for a bankruptcy filing to hurt for the immediate future.

Plus, what really hurts your credit? Not paying your debts.

“But a bankruptcy filing stays on a credit report for up to 10 years.”

(more…)

By Mark Rubin|2012-01-30T11:00:25-06:00January 30th, 2012|Bankruptcy, Bankruptcy Myths|