American Bar Association
Alabama State Bar
Alabama Criminal Defense Lawyers Association
National Association of Consumers Bankruptcy Attorneys
Expertise badge

Bankruptcy Myths

All too often people base their decision to file a Chapter 7  bankruptcy or Chapter 13  debt consolidation on unreliable, second hand information. Below, our bankruptcy lawyers have set out several of the common myths and misconceptions about bankruptcy. After reading this, if you have additional questions or concerns, please call the Montgomery bankruptcy lawyers or the Selma bankruptcy lawyers at The Sellers Law Firm. We work every day to help people take back control of their financial lives and we are ready to help you!

MYTH - If I File Bankruptcy, I Will Lose Everything I Own!

This is not true! Chapter 13 allows you to keep your property while setting up a structured repayment plan over 3-5 years to pay back your creditors. Chapter 7 may also allow you to keep your property, but this will vary in each case and depends upon whether you own property over the amount you are allowed to exempt from creditors. Currently, the allowed exemption for real property is $15,000 for a single filer and $30,000 for joint filers. For personal property, the exemption is $7,500 for a single filer and $15,000 for joint filers.

MYTH - Married Couples Must File Jointly!

This is not true! Often times it is in the best interest of a married couple to file jointly; however, that is not always the case. One spouse can file to discharge his or her debts, but the other spouse does not have to. Each case is unique but there is no requirement that married couples file jointly. This is one of the main myths that our Montgomery, Selma, and Central Alabama bankruptcy lawyers  encounter!

MYTH - I Can Only File Bankruptcy One Time!

This is not true! You are eligible to file more than one bankruptcy action; however, there are regulations as to the amount of time you must wait between filings. Chapter 7 can only be filed once every eight years and you must wait four years between the filing of a Chapter 7  and a Chapter 13. Chapter 13 can only be filed once every two years. If you have filed bankruptcy, previously call The Sellers Law Firm and let our bankruptcy lawyers help you decide if you qualify for bankruptcy relief.

MYTH - I Will Never Be Able To Own A Home Or Rebuild My Credit After Filing Bankruptcy!

This is not true! While bankruptcy does negatively impact your credit, you can work to begin rebuilding your credit after you are discharged from bankruptcy. The fact that you filed a bankruptcy does not automatically make you ineligible to own a home or get approved for financing. It does mean that you will have to work with different lenders to see who best meets your needs based on your previous credit history. Making smart choices after your discharge is the first step to getting back on track. Our experienced bankruptcy lawyers  offer debtor education classes to help plan for your future after bankruptcy.

MYTH - Bankruptcy Will Not Take Care Of Any Tax Debt!

This is not true! Some tax debts can be discharged through bankruptcy, but it depends on the type of tax debt as well as the age of the tax debt. The bankruptcy lawyers at The Sellers Law Firm can sit down with you and advise as to what your best option is to deal with back taxes, whether owed to the state or federal government.

MYTH - It's Too Late To File Bankruptcy If My Wages Are Already Being Garnished!

This is not true! Just because your wages are being garnished or your bank account has been garnished does not mean it is too late to get bankruptcy relief. In fact, now is the time to take immediate action! Filing a bankruptcy or debt consolidation will stop the garnishment and stop the creditors from pursuing future collection efforts. Filing will also allow your checking accounts to be reinstated. If you are dealing with garnishment, call our bankruptcy lawyers today to get help and get back on track.

Remember, our experienced Montgomery bankruptcy lawyers and our Selma bankruptcy lawyers are ready to help you! Our phone lines are answered 24 hours a day, and all consultations are always free. We can usually meet with you within 24 hours of contacting us!  Call or text The Sellers Law Firm today at 334-LAWYERS (529-9377)  and set an appointment to come meet our team. For many years, we heard the question, “Why don’t you have an office near me?” We answered the “near me” question by creating offices in Montgomery, Selma, Greenville, and Troy. If you don’t wish to call, you may email us at  use the Contact Form  on our website to reach us. You may also reach by emailing Remember that doing nothing, changes nothing so act today!

The Sellers Law Firm is designated a debt relief agency by an Act of Congress and the President of the United States. We have proudly assisted people seeking relief under the U.S. Bankruptcy Code for four decades.

Client Reviews
Brandon was my first choice for an attorney because he is part of the community and you see him at the local store or PTA meetings and he always has time for you and answer your concerns. Ronica Phifer
The Sellers Law Firm represented me in my social security case, and later in my Chapter 7 bankruptcy. I have been very happy with all that you have done for me, and I refer people to you all the time. Thanks for all that you have done for me and my family. Angie Langford
I would like to start out by saying Brandon sellers is more than a lawyer that has helped my family out in numerous occasions but he's also a great friend to our family. Whenever he can't find a resolution for the problem he always recommends somebody that can. I've known him for years grew up together always been really good friends. I like to say in closing I'm really glad I know him I'm glad he's been able to help us when we've needed him. Thanks for everything you've done. Timothy Palmer
The sellers law firm is the best in Alabama they are friendly and very professional from the attorneys to the people in the office. They where very helpful throughout the whole process and even after it was over. So if you are in need for a bankruptcy firm give Brandon sellers a call you won't be disappointed Thank you Again Brian Floyd
I highly recommend Sellers Law Firm, they are fantastic and care about their clients. They walk you through step by step and advise you of your options. Sheila Wright