Bankruptcy Misconceptions
The word “bankruptcy” is tossed around quite casually. Not surprisingly, a great many myths and misconceptions are passed around regarding bankruptcy laws, so one of the many jobs of a good bankruptcy lawyer is debunking the myths, clearing up the misconceptions, and explaining the law in a simple, straightforward manner. When you are well-informed about the financial laws that may affect you personally, you’re less likely to make the kind of financial mistake that can really hurt you. In the Chicago area, if you are being overwhelmed financially by out-of-control debt, it’s imperative to seek legal help immediately and consult with an experienced Chicago bankruptcy lawyer. Listed here are some of the common misconceptions many people have regarding bankruptcy:
1. “Everybody will know.” Unless you’re a famous person or a big corporation, the only people who will know you’ve filed for bankruptcy are your lawyer and your creditors. If other people find out, you’ll have to tell them.
2. “Bankruptcy erases all of your debts.” That’s actually far from true. Certain debts cannot be “discharged” or erased through bankruptcy: child support, alimony, most student loans, legal fines and settlements, and any debts incurred as the result of fraud.
3. “I’ll lose everything.” This myth keeps many people who should file for bankruptcy from filing. A good bankruptcy lawyer can explain how the law impacts your personal situation, but every state provides exemptions that protect certain kinds of assets, such as your house, your car, most retirement accounts, your household goods, and your clothes. Bankruptcy doesn’t mean you’ll be living in a cardboard box. Rather, it means another chance to start paying your debts without falling behind.
4. “I’ll never be able to get credit.” This is perhaps the most ironic of the misconceptions about bankruptcy. It won’t be long before you’re getting credit card offers again. You certainly don’t want to run up more debts, but if you need a car, you can probably get a loan even after a bankruptcy.
Bankruptcy can mean a fresh start, but it’s not for everyone. If you’re struggling with mounting debt in the Chicago area, a good bankruptcy lawyer can evaluate your personal financial condition and suggest the options and alternatives that are best for you and your family. If your debts are getting dangerously out-of control, call today and consult with an experienced Chicago bankruptcy lawyer.
