Denver Bankruptcy Attorneys - Law Office of Andrew McKenna

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    Contact us today at 303-730-8819, or use our CONTACT PAGE to request your free Telephone Consultation with Andrew F. McKenna, The Bankruptcy Attorney.

  • Bankruptcy Myths & Misconceptions

    Throughout this site, and through the free consultations we offer to potential clients every day, the Denver bankruptcy attorneys at The Law Office of Andrew McKenna work to dispel the common myths and misconceptions that surround bankruptcy protection. Too often, such misinformation is spread by big business – which stands to lose when consumer protect their rights and protect themselves from the worst consequences of predatory lending and corporate abuse.

    As we stated in our discussion of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, one of the biggest impacts of the law may be that some who qualify for bankruptcy protection don’t seek it because of the myths and misconceptions surrounding the means test.

    Colorado bankruptcy: Myths and Misconceptions

    • Bankruptcy is caused by Consumer Abuse: False. A total of 32,509 people filed for bankruptcy protection in Colorado in 2010, according to the U.S. Bankruptcy Court for the District of Colorado. Before reform passed in 2005, a total of  27,993 filed in 2004. Abusive lending and the astronomical cost of medical care are the leading drivers of bankruptcy.
    • My Assets will be sold at auction: Probably not. The vast majority of consumers file for Chapter 7 bankruptcy. While sometimes known as a liquidation bankruptcy, the reality is that there is usually little or nothing to liquidate. Substantial exemptions exist that often permit you to keep your home and car. Those with significant unprotected assets often file for Chapter 13, which permits them to keep assets while establishing a repayment plan.
    • I will lose my house and car: Usually false. The law permits an exemption for up to $60,000 in home equity and $5,000 in vehicle equity. Leased vehicles may also be exempt. In fact, bankruptcy can strip away second-mortgages and may reduce the amount owed on your vehicle.
    • Filing bankruptcy will jeopardize my retirement: False. Pension plans and most retirement accounts, including 401k plans and IRAs, are protected from seizure. Those struggling with bad mortgage debt, high credit card debt, or unmanageable medical bills may actually secure their retirement by going through the bankruptcy process.
    • Everyone will know: Bankruptcy is a court process. As such, it’s a public record. Anyone diligent enough to search court documents – online or otherwise – will have access to the fact that you filed. But the reality is that very few people will know or care. It’s not uncommon for someone to file bankruptcy without the knowledge of siblings, children or other close relatives. Being hounded by creditors and collection agencies is much more likely to come to the attention of friends and relatives than seeking bankruptcy protection.
    • Bankruptcy will ruin my credit: False. Bad debt will ruin your credit. In the vast majority of cases, a person’s credit has been ruined by late payments, maxed out credit cards and bad-debt judgments long before bankruptcy. The bankruptcy process wipes the slate clean and allows a consumer to begin rebuilding good credit.
    • I won’t be able to get credit cards after bankruptcy: False. The same companies will be right back in line offering you credit in short order. It’s one surefire way they will recoup some of their money. While you will pay a high interest rate – it may not be as high as the default rates you may have endured before bankruptcy. Of course, whether or not you use credit cards is another matter.
    • I won’t be able to get a loan: False. Once your debts are erased and you start with a clean slate, you make a better lending risk. And you will be ineligible to file for bankruptcy for years to come. Most consumers will find they can get car loans soon after a bankruptcy case is completed. Mortgages are often available in as little as two years.

    Contact a Colorado Bankruptcy Attorney Today

    If you need bankruptcy assistance in Denver or would like more information, call The Law Office of Andrew McKenna today at 303-730-8819 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code. Serving clients in Denver and throughout Colorado, including Aurora, Englewood, Lakewood and Boulder.

    Denver Bankruptcy Help – 303-730-8819– Free Consultation

  • ANDREW McKENNA’s CREDENTIALS

    20 Years of Experience
    NACBA Member
    Only represents consumers
    BBB Accredited, A+ Rating

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    North Metro Denver Office – 11154 Huron
    St. Northglenn, CO 80234

    South Metro Denver Office – 3801
    E. Florida, Suite 400, Denver, CO 80222

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