Chicago Bankruptcy Myth Busters


Most of the myths surrounding bankruptcy center on the stigma and social aspects of filing for bankruptcy. A good Chicago bankruptcy attorney will take the time to explain exactly what bankruptcy means and what you can expect during and after the process.

To be blunt: People are ashamed about having to file for bankruptcy and often will take extraordinary measures to stay out of bankruptcy court, even to their future detriment.

Bankruptcy Myth 1: Filing for bankruptcy means you lose everything that you own…

Nothing could be further from the truth. If you file for Chapter 7 or Chapter 13 bankruptcies (which are the two types of bankruptcy available for individuals) you are actually taking steps to protect your precious assets. Your home, your vehicle, especially if it is used as a part of your employment, and other family possession can be saved if you use an experience Chicago bankruptcy attorney.

Myth Busted!

Bankruptcy Myth 2: Filing for bankruptcy will affect your employment.

Your employer is not privy to your financial records. That is a law. To gain access to your credit record, a current or prospective employer must first have your permission in writing. Filing for bankruptcy could just be the saving grace on your financial records in terms of your employer. Salary garnishments can be served on you if you are struggling to service your debt, and those are a matter of public record and your employer will be informed.

Myth Busted!

Bankruptcy Myth 3: I will never be able to get credit again if I file for bankruptcy.

Really? The fact of the matter is that failing to service your debt, and struggling with legal action and lawsuits will do even more damage to your credit rating than a bankruptcy. Filing for bankruptcy is a tool that can be used to protect your future and not live with a mountain of debt hanging over you all of the time. Filing for bankruptcy draws a definite line in the sand between a rocky financial past and a smooth financial future.

Myth Busted!

An experienced Chicago bankruptcy attorney will use every means to help you keep your home. In Illinois itself there are a number of state programs such as recently released “The Illinois Hardest Hit” which the governor of Illinois hopes will help citizens of the state to avoid foreclosure and protect their homes during bankruptcy. Your bankruptcy lawyer is not just about processing the paperwork.

​There is no doubt that filing for bankruptcy is a difficult decision, but instead of looking at it as a failure, you need to consult with a Chicago bankruptcy attorney who is experienced and will give you excellent advice about your financial future. Bankruptcy is not just a stopgap to plug up a financial wound. Good attorneys don’t just treat the symptoms of bankruptcy, but provide useful skills and tools for your future financial health.