Some Misconceptions About Bankruptcy

Like almost anything in life, bankruptcy is something that you have to experience to understand fully. Those who haven’t experienced it may be misinformed by the many myths and misconceptions that are passed around regarding bankruptcy. If you are struggling with overwhelming debt in or near the Chicago area, and all of your own efforts seem futile, discuss your circumstances at once with an experienced Chicago bankruptcy lawyer. One of the jobs of a bankruptcy lawyer is explaining bankruptcy law in a simple, straightforward manner. When you’re informed, you’re less likely to make the financial mistakes that genuinely hurt you. These are some of the popular misconceptions some people have about bankruptcy:

– You’ll lose everything you own: This misconception keeps many people who really need bankruptcy from filing. Illinois, like every state, allows bankruptcy exemptions that protect assets such as your house, your car, retirement accounts, household items, and clothing. Bankruptcy does not force you to become homeless.

– Bankruptcy entirely eliminates your debts: If only life were that simple. The fact is, some debts cannot be discharged through a personal bankruptcy, including alimony, child support, most student loans, legal fines, and civil lawsuit settlements.

– You’ll never get credit again: This isn’t just a misconception. Almost as soon as you file for bankruptcy, you’ll begin receiving credit card offers. If you have a regular income, for example, you’ll probably be able to get a car loan immediately after your bankruptcy.

– Everyone will find out: Unless you’re famous, no one – except your lawyer and your creditors – will learn about your bankruptcy unless you tell them.

Bankruptcy isn’t for everyone, and you may have better options for dealing with debt. In the Chicago area, let a good bankruptcy lawyer assess your particular financial circumstances and make the suggestions that are in your best long-term interests. If your debts are out-of-control, call right now and arrange to discuss your case with an experienced Chicago bankruptcy lawyer.