My friend and fellow bankruptcy lawyer David Shaev of New York City was recently featured in this video debunking the following five popular myths about bankruptcy:

1. You have to be dead broke to file bankruptcy.
2. Bankruptcy ruins your credit score.
3. You’ll lose your home if you file bankruptcy.
4. You should max out your credit cards before filing bankruptcy.
5. You should deplete your retirement savings before filing bankruptcy.

Several people have contacted me recently asking whether they could be sent to jail for not paying their debts or for filing bankruptcy.

Apparently, creditors or bill collectors have told these people that they could be criminally charged and face jail time for not paying their bills or for filing bankruptcy.

Lies, lies, lies. Nothing but lies and scare tactics.

The Oklahoma Constitution provides that “Imprisonment for debt is prohibited, except for the non-payment of fines and penalties imposed for the violation of law.” Okla.Const. art. 2, § 13.

Failing to pay a civil debt is not a crime. However, failing to pay alimony or child support can result in incarceration. As can committing fraud to avoid paying debts.

And filing bankruptcy isn’t a crime either. Actually it’s a legal right provided by federal law.

Lastly, the only crime being committed here is by the creditor or bill collector who is using unfair, deceptive and illegal methods to collect a debt.  Each day seems to bring another story of a state Attorney General’s office investigating or suing a collection agency because it threatened consumers with arrest if they didn’t pay their overdue bills. Some debt collectors have even been convicted of routinely impersonating attorneys and police officers as a part of their illegal collection activity.

If you’re struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact Dan Nunley today by completing the “Contact Dan” form on the right side of this page. I’ll get back in touch with you as soon as I can to schedule a FREE initial telephone consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

Not true. There is no requirement that both husband and wife must file bankruptcy together.

If the bills that are causing financial difficulty belong to only one spouse, then it may make sense for just that spouse to file an individual bankruptcy case.

However, if both husband and wife are jointly liable for bills that they cannot pay, then they should file a joint bankruptcy case. Otherwise, while the creditor will be unable to collect the money owed from the spouse who received a bankruptcy discharge, the creditor will simply demand payment for the entire amount from the spouse who didn’t file bankruptcy.

If you are unsure of whether or not both you and your spouse should file bankruptcy together, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

Many people who would benefit greatly from filing bankruptcy don’t do it because they’re afraid. They’re afraid to file bankruptcy because they mistakenly believe that all of their property would be taken away from them. They picture themselves losing everything they own and having to start all over with just a cardboard box.

This is just not the case. The truth of the matter is that the vast majority of people who file bankruptcy get to keep everything they own.

While they vary from state to state, each state has laws that “exempt” or protect certain kinds of property, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods and clothing. Oklahoma’s exemption law can be found here.

If you are struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

False. While not all tax liabilities can be discharged (forgiven or wiped-out) in bankruptcy, some can.

If you owe income taxes to the Internal Revenue Service (IRS), the Oklahoma Tax Commission (OTC) or another state, those tax liabilities can be discharged by filing either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy as long as the following 5 rules are met:

1. The due date for filing the tax return was at least three years prior to the date you file bankruptcy,
2. The tax return was filed at least two years prior to the date you file bankruptcy,
3. The tax assessment date was at least 240 days prior to the date you file bankruptcy,
4. The tax return was not fraudulent, and
5. You are not guilty of tax evasion.

Determining whether or not the taxes you owe can be discharged in bankruptcy is not an easy task. You should seek the advice of a knowledgeable bankruptcy attorney regarding your specific situation.

If you owe back taxes and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

The vast majority of people who file bankruptcy are good, honest, hard-working Americans who have fallen on hard times. Statistics show that more than 90% of bankruptcy filings are a direct result of either divorce, job loss, or health problems. See my previous post on the profile of the average person who files bankruptcy.

If you are struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.