Orville & McDonald Law, P.C.

Bankruptcy Law Firm in Binghamton, NY

Call us: (607) 770-1007
Mon – Fri 9am–5pm

Common Bankruptcy Myths

Bankruptcy and Debt Relief in upstate New York

There are many common bankruptcy myths that circulate through word of mouth, on the Internet and even in financial publications. These myths are not only false, but also discourage people from filing for bankruptcy.

At the Orville & McDonald Law Link to Firm Overview, we believe in educating our clients in bankruptcy law and debtor's rights, while presenting them with an honest assessment of their situation.

Here are some common bankruptcy myths:

People who file for bankruptcy have done something wrong

There is no basis for this claim, which is false and unfair to consumers. People in every socioeconomic bracket file for bankruptcy and are typically honest and hardworking individuals who have fallen upon hard times or taken deals from unscrupulous creditors. In fact, the right to file bankruptcy is found in both the Bible and the US Constitution.

Creditors may still call after I've filed for bankruptcy

Filing for bankruptcy provides an automatic stay against creditor collection actions. This means that as soon as a person files for bankruptcy, a hold is put on all outstanding debts and any attempts to collect those debts by creditors. If a creditor does contact a debtor, tries to repossess an asset or collects on the debt during the automatic stay, the person, through their attorney, may file a lawsuit to collect monetary damages. Our office has been very successful in collecting damage awards of several hundred to several thousand dollars for our clients from creditors who violate the automatic stay.

I can only file for bankruptcy once

Many people believe if they have filed for bankruptcy in the past that they are no longer eligible to file again. While there are limitations as to future filings for bankruptcies, a person may file for bankruptcy even if done so in the past.

My credit will be ruined if I file for bankruptcy

While a bankruptcy will be listed on your credit report, this does not mean that your credit will be ruined for an extended period of time. Generally, people who consider filing for bankruptcy already have a tarnished credit record, which will continue to get worse as they put off filing. After filing bankruptcy and receiving your discharge, your credit report is wiped clean, People who have filed may begin to rebuild their credit almost immediately and many even get a mortgage within a couple years of filing and a loan or credit card even sooner.

Do not let these or other myths regarding bankruptcy prevent you from getting the financial help that you deserve. Contact a lawyer at our firm today and ask us what filing for bankruptcy can do for you. We offer a free initial consultation to clients in Binghamton, Syracuse, Johnson City, Vestal, Endwell, Endicott and the surrounding communities of Central New York and the Southern Tier.

Call Orville & McDonald Law at (607) 770-1007 for consumer bankruptcy protection and debt relief.


30 Riverside Dr.
Binghamton, NY 13905


Our Service Area

The Consumer Bankruptcy Center of Peter A. Orville is located in Binghamton, New York, and serves communities in central New York including in and around the cities of Binghamton, Syracuse, Vestal, Johnson City, Ithaca, Cortland, DeWitt, Oswego, Fulton, Fayetteville, Auburn, Utica, Rome, Cazenovia, Endicott, Owego, Oneonta and Norwich; and the counties of Broome County, Onondaga County, Oswego County, Tioga County, Tompkins County, Chenango County, Delaware County, Cortland County, Oneida County, Madison County, Herkimer County and Otsego County.

Call us for consumer bankruptcy protection and debt relief.

(607) 770-1007

Orville & McDonald Law offers a free initial consultation with a lawyer to discuss your options. We are located near Lourdes Hospital and downtown Binghamton, and are open from 8:30 a.m. to 5:00 p.m., Monday through Friday.

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