Myths About Bankruptcy

From a Chicago Bankruptcy Attorney

There are many rumors you hear about bankruptcy and the ramifications of filing for it. Numerous tales are told how it will ruin your life, your reputation, and leave you with nothing. These are mostly falsehoods which should be best dispelled by consulting with a qualified Chicago Bankruptcy lawyer who can properly evaluate your situation and advise you accordingly. Law Offices of David Freydin are happy to answer your questions by offering a free initial consultation. Below is a list of common Bankruptcy Myths.

It's difficult to file for bankruptcy.
No. With our experienced staff, you will find filing for bankruptcy is not difficult at all. You may find the initial decision to go through with a bankruptcy to solve your debt situation may be difficult, but once you decide on that the filing can be easily accomplished.

You won’t be able to keep anything you own.
False. In a Chapter 7 Bankruptcy, the law allows people who file for bankruptcy to keep most if not all of their personal property. The Bankruptcy law recognizes that keeping personal property is essential for people to get a "fresh start" after bankruptcy. In a Chapter 13 Bankruptcy, people lose nothing they want to keep as long as they are making their court approved Chapter 13 Bankruptcy payments pursuant to their Chapter 13 Bankruptcy plan. Contact one of our experienced attorneys today for more information about keeping personal property.

You will have a hard time every buying anything again.
Again, absolutely not true. Following the final discharge of your debts in bankruptcy you can purchase whatever you want if you can afford it. You will need to re-establish credit in order to purchase some larger items, such as a vehicle or an appliance. Re-establishing credit is relatively simple since many companies are now offering credit to those who have filed bankruptcy.

Filing bankruptcy will hurt your credit for 10 years
Although the bankruptcy does remain on your credit report for 10 years, your credit will begin to improve immediately after filing. All the overdue bills you already had showing on your credit prior to the bankruptcy will be discharged. As more time goes by, your score will go up, especially if you carefully and responsibly re-establish credit.

You will not be able to get credit again.
This is not true. Once your bankruptcy is finalized, your debt is discharged and some lenders see this as a positive thing. You now have a clean slate and many lenders will be more likely to extend you credit than before you filed bankruptcy.

You can only file for bankruptcy protection once.
This is not accurate. After 8 years you can file for a Chapter 7 once again. Chapter 13 requires a 2 year wait after a prior Chapter 13 filing in which a discharge was granted.

You can get rid of all of your debts through bankruptcy.
This is one myth that would be nice if true, however, this is not the case. Most debts can be discharged, including credit card debt, personal loans, medical bills and others. However, child support, alimony, most taxes and most student loans cannot be discharged.

Consult a Chicago Bankruptcy Lawyer

You need to rely on an experienced and trusted attorney who will provide you with the right information on filing for bankruptcy. Don’t believe the myths, contact us today at Law Offices of David Freydin for your free consultation.

For a skilled help to file your bankruptcy, contact a Chicago bankruptcy attorney from Law Offices of David Freydin