Bankruptcy Myths

You can run up credit cards and then file.
Fact: Once you decide to go bankrupt, it will constitute fraud to run up your cards. This can deprive you of a discharge.

You do not have to file tax returns if you owe money and are going to file anyway. Fact: Debtors must file their tax returns before going to court. A case will be dismissed if tax returns are not current.

Creditors can still come after you for debts.
Fact: While there are a large number of creditors and collection agencies that will try to come after people post-bankruptcy, they are usually breaking the law and can be stopped.

You should spend your 401(k) on paying off credit cards, so you can keep the cards. Fact: If you pay any one creditor more than $600 in the 90 days before filing, he or she is likely to lose the money. Besides, your properly established 401(k) cannot be taken by creditors, so you should not give it away.

You should try to trade out your expensive car before filing, so that you can keep your new car.
Fact: For Texas filers, state exemptions may provide a shield for the loss of your car. A decision to trade an automobile in preparation for bankruptcy should not be made without the advice of an attorney. In many cases it may not be legal to do, in others, it may simply be wasteful.

You can keep cash as a part of your wild-card exemptions.
Fact: There is no exemption under Texas law for cash, period. The exemption that can be applied to cash under federal law is very limited. Cash planning is an important part of the process of getting ready to file for bankruptcy.

Call Now for an Initial Consultation

When considering bankruptcy, you should work with an experienced lawyer who can review your case. Attorney Wyatt offers affordable rates and works efficiently and effectively to deliver optimal results.

Call 281-419-8733 or contact us by e-mail to arrange an initial consultation or case evaluation. Let us help you explore your options and achieve the financial freedom you deserve.


We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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