Bankruptcy is one of those areas of law that has massive misinformation that seems to find its way into the hands of the people that are in the greatest need of the options that it affords. Since I have been practicing Bankruptcy I have heard all sorts of things from clients that they "heard" about bankruptcy. Without fail, whatever they have heard is almost always 100% wrong.

This being said, we thought it would be a good idea to include some basic information about Bankruptcy. Please understand that this is not a complete guide, and should you have any questions specific to your situation, please contact an attorney to address those concerns:

Bankruptcy is based on the concept of a fresh start, that you are entitled to receive if your facts fit properly under the provisions of the Bankruptcy Code. Thousands of New Hampshire residents file to receive their "fresh start" each year and many famous Americans have also used this financial management tool to get back on track, including Abraham Lincoln, Mark Twain, Burt Reynolds and Tom Petty.

Most debts will be wiped out by a successful Bankruptcy including credit cards, personal loans, repossessions, foreclosure deficiencies, older IRS debts, court ordered collections, and medical debts.

Some debts will not be wiped out by a Bankruptcy including child support or alimony obligations, student loans, or recent IRS debt. There are other types of debts that may not be discharged which you should discuss with an attorney if you have specific questions.

I am going to recommend that each of you do your own research on this one. Your credit can and will recover in a shorter period of time than you likely expect. The biggest misconception that people considering bankruptcy hold on to is that their credit is shot for 7-10 years. This simply is not true. People nationwide are consistently seeing their credit largely restored within 2 years. With proper post-Bankruptcy planning, your credit can and will recover. Again, please do your own research on this one, the information is out there.  

The clients that come to see me are often dealing with creditor phone calls all day long. Hiring a Bankruptcy attorney can and will put an immediate stop to this harassment. Under the Fair Debt Collections Practices Act, once your creditors have been informed that you are represented by a Bankruptcy attorney, they are required to call your attorney and not you anymore. Bankruptcy will also put a halt to the collection law suits that you may be facing.